Arguments For and Against Minimum Wage in the US

Arguments For and Against borderline operate in the USPatrick Tawadros, Corinne Dexter, Mark Hanna, Yuanwen pealMediated Speech Outline stripped profitsI. IntroductionIn this country, regardless of views and opinions, the shirktroversial topic of minimal salary has resounding make believe on civiliseers, businesses, and consumers alike.We impart try to parse out the gory expatiate by debating the professional persons and cons of increasing the token(prenominal) occupy.We have through with(p) extensive research, as well as worked our fair share of marginal profits jobs swelled us the ability to speak confidently on matters related to negligible pursue.Its plausibly near of you have stripped net jobs giving you something to relate. If you dont work for negligible wage you are probably still a consumer and consequently every through wage extends or court appends the dissolving agents of this debate leave al one have an impact in your life. at that place are strong melodic lines two for and against face lifting the stripped-down wage includingThe potential to improve wellness, pedantics, and deoxidise crime swans.The potential to lead to a spike in unemploymentThe potential to reduce pauperism levelsAnd finally the potential to cut back demandHow might on the button a few dollars do all this? Well lets start with the scratch line health academics and crime. II. Bodyprofessional psyche Argument 1 (PATRICK TAWADROS) Increasing the borderline wage would have positive health installs, improve academics in the boilersuit sense, and reduce crime rates.Increasing borderline wage sustains a rosy-cheeked population and lowers mortality.In a study done by Rajiv Bhatia, MD, on the California minimum wage, it was put that a higher(prenominal)(prenominal) minimum wage would ultimately allow workers to have enough to eat, be to a greater extent(prenominal) seeming to exercise, and even prevent premature deaths (Bhatia).In ano ther study conducted by Barhii, he concluded that policies that reduce poverty and raise fee of low-income hoi polloi can be expected to significantly improve overall health and reduce health inequities (Barhii).To add to the added health benefits, increasing minimum wage would addition school day attendance, while simultaneously decreasing high school dropout rates.Teens living in poverty are twice as likely to miss 3 or more days of school per calendar month when compared to teens who do not live in poverty (Bhatia).A higher minimum wage would reduce crime.In a study done by the Executive social function of the Presidents Council of frugal Advisors, it was found that by raising minimum wage to $12 by the year 2020 that there would be a three to five percent crime decrease. This is primarily imputable to the fact that higher wages provide viable and sustainable employment. (Executive Office of the President)In another study conducted at the University of Virginia, it was foun d that an increase in wages is associated with a reduction in property-related crimes. (Fernandez)Response to pro command (con) (YUANWEN) At first glance, the increasing of minimum wage would allow pot of lower incomes to live a better life. But increasing minimum wages adds many potential threats to the equilibrium of the free merchandise. The net effect of this interference is not necessarily good. To specify, increasing minimum wage testament cause higher unemployment rate, and has no significant links to lowering the crimes..There is few evidence to show that there is a link amidst the increasing of minimum wages and decreasing of crime rates. According to a study conducted by Boston College in 2013, crime will increase by 1.9 percentage points among 14-30 year-olds as the minimum wage increases. (Fuller).Due to the higher unemployment rate caused by the increasing of minimum wage, some of the next genesis will not be able to return the education. In 2009, a study by the American Journal of economic science and Sociology discovered that in Maryland, a 25-percent increase in the real minimum wage was associated with a 0.55 percent increase in the dropout rate for Hispanic students. (Crofton, Anderson, and Rawe).Con argument (YUANWEN) On the contrary, increasing the minimum wage would force business to perplex off more employees to save budgets and raise the unemployment rates.Sub point 1 Increasing minimum wage will raise the cost of businesses, lower their employment levels, and cause higher unemployment rate.Raising minimum wage will increase the cost of businesses, forcing businesses to lay off more employees. The Congressional figure Office predicted a $7.25 to $10.10 minimum wage increase could potentially cost 500,000 jobs. (Congressional cypher Office).Increasing minimum wages will lower the willingness of businesses to engage more employers, due to the swipe of the cost. There was a survey conducted of 1,213 businesses and homophile re sources professionals and 38% of the employers who payed minimum wage express they would resort to letting go some employees if it was raised to $10.10. Among them 54% said they would decrease hiring levels (Kast).Statistically, comparing to countries that do not have minimum wage insurance policy, countries with minimum wage policy have higher rate of unemployment. In 2014, Steve H. Hanke, Professor of Applied sparings at Johns Hopkins University, conducted a survey of the 21 European Union countries that had a minimum wage and discovered they had an average unemployment rate of about 11.8%, which was a third higher than the 7.9% average in the remaining EU countries with no minimum wage (Hanke).Sub point 2 Increasing minimum wage will put lower-skilled worker at a disadvantage, since the mug up of wage exposes those lower-skilled to the same competition with those more skilled.Raising minimum wage will put lower-skilled workers at disadvantages. From an employers point of view , race of lower skills do not on the buttonify the rise of minimum wages, but they have no choice but to join the competition with the more skilled, if minimum wages are increased. James Dorn stated that a minimum wage increase by 10% leads to a 1-3% decrease in employment of low-skilled workers in the short term, and to a larger decrease in the long slope (Dorn).Increasing minimum wages puts lower-skilled workers at a disadvantages by forcing them to be exposed to the same competition with heap who are more skilled. George Reisman stated that if the minimum wage was increased to $10.10, jobs that presently pay $7.25 had to pay $10.10, than workers who antecedently would not have considered those jobs because of their ability to earn $8, $9, or $10 per hour, will now consider them. The effect is to expose the workers whose skills do not snuff it a level corresponding to $7.25 per hour to the competition of better educated, more skilled workers presently able to earn wage rates ranging from just above $7.25 to just below $10.10. (Reisman).Response to con argument (CORINNE) patronage the claim of a rise in unemployment, studies on past minimum wage hikes have shown little effect on unemployment in both federal mandated and state mandated hikes.Sub point 1 A fictional character study of the fast food industry which compared two states, New island of Jersey and protoactinium after New Jersey increased the minimum wage, and Pennsylvania did not, showed that there is no evidence that the rise in New Jerseys minimum wage reduced employment at fast-food restaurants in the state (Card, Krueger). The department of beat back statistics further contends that in 65 years of federal minimum wage hikes, unemployment rates in the past have generally gone down, or stayed the same after increases in the minimum wage with only one exception in the 70s and that unemployment spike is linked to other causes such as recession and an energy crisis (Real Minimum Wage). Histor y shows that it safe to assume that if anything a higher minimum wage will put more silver in mountains pockets to be used for discretionary spending which will give the market or keep it the same, but not increase unemployment.Pro argument (CORINNE) What, hoever, minimum wage increases always do, is reduce poverty and in turn reduce regimen spending.Sub point 1 Currently, the minimum wage is not enough to live on. The economic policy constitute using government sources found that the average cost of living in the U.S., excluding discretionary spending is roughly $50,000 more than what a minimum-wage worker earns (Cooper). As a result many people are either and making it by, or are below the poverty line merely and relying on government attention to do so. In the 2014 Congressional reckon Office report, it showed that increasing the minimum wage to $9 would lift 300,000 people out of poverty, while raising it to $10.10 would bring 900,000 people out of poverty (Congression al Budget Office). Accounting for inflation minimum wage should in reality be even higher at $10.52 or more depending on where soulfulness lives implying that poverty rates could shrink even lower with a more aggressive raise (Cooper).Sub point 2 By component families survive off the the diligent work that they do we are similarly helping the taxpayer burden. It was reported in 2014 by The Center for American come near that by raising the minimum wage to $10.10, SNAP spending would lineage by $4.6 billion (West, Reich). Likewise The Economic Policy Institute found out that by making the minimum wage to be $10.10, at least 1.7 million Americans would not depend on government aid programs (Cooper). The wage increase would save $7.6 billion on annual government spending for income- get programs (Cooper). This money could either go back into the pockets of the everyday person or be used for other beneficial programs.Response to pro argument (MARK HANNA) Unfortunately a decrease i n government spending for income support programs could lead to unintended negative sideeffects down the road for the poor people and unemployed.People who have then been laid off would suffer from reductions in benefits because of congressional budget cuts to programs such as the supplemental nutrition assistance program (SNAP, lineerly called food stamps), temporary assistance for needy families (TANF), the take in Income Tax Credit (EITC), child-care subsidies, housing vouchers, and Women, Infants, and Children (WIC) due to the benefit rates melt as income rises (Sherk, 2013). Those people still employed would be able to afford more so the need for these programs would diminish and as more people will have to use those defunded programs as unemployment increases, poverty will rise as the budget will not be able to support them (Sherk, 2013).The standard of living will also increase as minimum wage increases. In a study conducted by Purdue Universitys shallow of hospitality an d Tourism Management, they found that increasing wages to $22 an hour raises consumer prices by 25% (McClure, 2015).Con argument (MARK HANNA) Thus, raising the minimum wage would actually lower demand for market development and products as a result of higher prices, resulting in negative long term outcomes for families and the economy.Studies show that if the minimum wage was to increase from $7.25 an hour to $10.10 an hour, the demand for workers would decrease and many people would get laid off. Meanwhile, those who were not laid off pay 15% more on payroll and income taxes for each additional dollar that is added to the minimum wage (Sherk, 2013). This decrease in demand will have indispensable negative consequences for unskilled workers and their families in the long run in the form of less opportunity for employment and skill acquisition. Chaplin, Mark, and Andreas (2003) found through a study they conducted that increasing the minimum wage would lower the continuation rate fo r grades 9-12 in states with dropout ages under 18.Raising the minimum wage will cause demand to fall for what James and Mary Kau (1973) call industrial inducement, which is depict as the incentive for industry to progress itself forward. This fall in incentive was documented in a study conducted by Van sickle (1946), where he found that the south was booming with industrialization for a few decades then plummeted after the Fair Labor Standards Act was passed. The rising be created by low demand for work would also impede competition, as the cost of production of goods from the south to the north would increase (Kau Kau, 1973).Response to con argument (PATRICK TAWADROS) Long term effects of the minimum wage creation increased do not affect educational opportunities for teen workers and do not hurt demand for consumer goods.In an journal article by Warren and Hamrock (2010), they describe how the effects of a minimum wage increase would not impact teen workers who were not alre ady doing poorly academically as others say it may. They claim it would only impact those who would have had a history of failure who are not engaged in meaning(prenominal) extracurricular, social or athletic activities in school and, perhaps most importantly, who are in a position to meaningfully increase their levels of advertize market participation (Warren Hamrock, 2010). They continue to state that if the raise would impact a certain educational subset, it would be those students who are competing with adults for jobs and/or who would be dropouts either way (Warren Hamrock, 2010).Minimum wage increases do not impact market development as innovation has always been outrunning minimum wage increases. This is shown in an article published by The Economist (2015), stating that in most substantial countries minimum wages rise with income levels, but in America that is not the case, as one would think that in a country with a GDP of $53,000 per person, the minimum wage should be at least $12 an hour, but it is not. Therefore, because it has not kept up with income rises, it cannot be safely said that raising the minimum wage kills innovation.Thus far, what have we learned from our parole? Lets recap.III. ConclusionUltimately, increasing minimum wage could reduce poverty, hence, improving health, academic performance, and decreasing crime rates. However, on the other hand, increasing minimum wage could pressure business to lay off employees and could decrease demand for crowd and products.Regardless of perspective, the controversial and divisive topic of minimum wage is a far reaching issue in the United States of America and so it is important to weigh all sides equally to come to a match conclusion.Works CitedPatricks Pro Argument SourcesExecutive Office of the President, Council of Economic Advisors, Economic Perspectives on Incarceration and the Criminal Justice System, whitehouse.gov, Apr. 2016Fernandez, J., Holman, T., Pepper, J. V. (2014). The Im pact of LivingWage Ordinances on Urban abomination. Industrial relations A Journal of delivery and Society, 53(3), 478-500.Rajiv Bhatia, wellness Impacts of Raising Californias Minimum Wage, Human Impact Partners website, May 2014 quest Area Regional Health Inequities Initiative (BARHII) The Minimum Wage and Health A Bay Area Analysis, barhii.org, Oct. 2014Warren, J., Hamrock, C. (2010). The Effect of Minimum Wage evaluate on High School Completion. Social Forces, 88(3), 1379-1392. Retrieved from http//www.jstor.org.proxy.libraries.rutgers.edu/stable/40645895The Economist. (2015, May 20). concede dirt. Retrieved from http//www.economist.com/blogs/graphicdetail/2015/05/minimum-wagesCorinnes Pro Sources Card, D., Krueger, A. B. (2000). Minimum Wages and recitation A Case cultivation of the Fast-Food Industry in New Jersey and Pennsylvania Reply. American Economic Review,90(5), 1397-1420. doi10.1257/aer.90.5.1397Cooper, David. Raising the Federal Minimum Wage to $10.10 Would S ave galosh Net Programs Billions and Help Ensure Businesses Are Doing Their Fair Share. Issue apprize no. 387. New York Economic Policy Institute, 2014. Print.Real Minimum Wage Rate vs Unemployment Rates January 1950 to January 2013 Chart. (2013.). In Bureau of Labor Statistics .Reich, Michael, and Rachel West. The Effects of Minimum Wages on Food Stamp Enrollment and Expenditures. Industrial Relations A Journal of Economy and Society 54.4 (2015) 668-94. Web.The Effects of Minimum-Wage Increase on Employment and Family Income. Rep. no. 4856. N.p. Congressional Budget Office, 2014. Print.Yuanwens Con SourcesCongressional Budget Office, The Effects of Minimum-Wage Increase on Employment and Family Income, cbo.gov, Feb. 2014Kast, S., New Express Employment Professionals Survey of Employers Shows 38% of Those Who Pay Minimum Wage Will countersink Off Workers If Wage Is Hiked, prweb.com, Mar. 19, 2014Hanke, S.H., Let the Data Speak The Truth female genital organ Minimum Wage Laws, Ca to Institute website, Apr. 2014Dorn, J., The Minimum Wage Delusion, and the Death of greenness Sense, Forbes, May 7, 2013Reisman, G., How Minimum Wage Laws Increase Poverty, Mises Institute website, Apr. 4, 2014Crofton, S.O., Anderson, W.L., Rawe, E.C., Do high Real Minimum Wages Lead to More High School Dropouts? Evidence from Maryland across Races, 1993-2004, American Journal of Economics and Sociology, Apr. 2009Fuller, D., multilevel Study Finds No Link Between Minimum Wage and Crime Rates, uc.edu, Nov 18, 2013Marks Con SourcesSherk, J. (2013, June 25). What is Minimum Wage Its History and Effects on the Economy. Retrieved from http//www2.heritage.org/research/testimony/2013/06/what-is-minimum-wage-its-history-and-effects-on-the-economyChaplin, D. D., Turner, M. D., Pape, A. D. (2003). Minimum wages and school enrollment of teenagers a look at the 1990s. Economics of Education Review, 22(1), 11-21.Van Sickle, John, Geographical Aspects of a Minimum Wage, Harvard Business Revi ew, XXIV (Spring 1946), 288.Kau, J., Mary L. Kau. (1973). Social Policy Implications of the Minimum Wage Law. Policy Sciences, 4(1), 21-27. Retrieved from http//www.jstor.org.proxy.libraries.rutgers.edu/stable/4531512McClure, G. (2015, July 27). Study Raising wages to $15 an hour for limited-service restaurant employees would raise prices 4.3 percent. Retrieved from http//www.purdue.edu/newsroom/releases/2015/Q3/study-raising-wages-to-15-an-hour-for-limited-service-restaurant-employees-would-raise-prices-4.3-percent.html