There are many conflicting views to the idea of raising the minimum wage for hourly workers in America. This trending political and social topic has been and is being pursued both on a federal level, and independently by governments of multiple states throughout the U.S. More recently, in early 2014, congress rejected the passing of legislation to increase the federal minimum wage from $7.25 to $10.10. Despite this hindering of a federal increase in minimum wage, several states have taken matter in to their own hands, and successfully passed legislations to increase their own pay floors. Specifically in the state of Michigan, the minimum wage increased in early September of 2014 from $7.40 an hour to $8.15 an hour. Along with Michigan, the
…show more content…
“Increases in the minimum wage actually redistribute income among poor families by giving some higher wages and putting others out of work. A 1997 National Bureau of Economic Research study estimated that the federal minimum-wage hike of 1996 and 1997 actually increased the number of poor families by 4.5 percent.” (Henderson). As you can see from this statistic, a raise in minimum wage in attempt to lift families out of poverty, and benefit minimum wage workers, failed in multiple ways. It created more competition among jobs that require little to no achieved skills, and contributed to an increase in poverty level. In a time of economic instability and recession, why take the chance in repeating history. In a New York Times article on raising state minimum wages, writer Steven Greenhouse encountered a persuading billboard in regard to this situation. “One group posted a billboard in San Francisco with a picture of a giant touch screen saying, ''Hello, may I take your order?'' To the right of the screen, the text reads, ‘With a new minimum wage, employees will be replaced by less costly, automated alternatives.’”(Greenhouse). As far-fetched as it sounds, the statement being made with this billboard is actually quite accurate. Common sense would tell you …show more content…
This projection from the article “Poverty and Homelessness” is a prime example of an argument that would be made in favor of an increase in minimum wage. According to article author Doug Hall, an increase of over two dollars to the minimum wage would put more money in the pockets of workers earning low hourly wages. He makes the argument that this increased income for the workers would, in-turn, lead to them spending the extra earnings, and stimulating the economy. What primarily needs to be taken from Hall’s argument is that it has no factual evidence that these consumers will spend these earnings back into the economy. Hall is basically stating that we should take the risk of increasing the minimum wage by over two dollars, and hope that the person’s receiving these extra earnings will spend them back in to the economy. What happens if these workers don’t make such wise decisions with their money? In a time of critical economic instability, it would not be safe to make this gamble. The increased cost of living (stated earlier) that would come with an increase in minimum wage is another problem that this argument is neglecting. If these consumers did decide to spend their increased earnings, it would equally be offset by this increased cost of
“Increases in the minimum wage actually redistribute income among poor families by giving some higher wages and putting others out of work. A 1997 National Bureau of Economic Research study estimated that the federal minimum-wage hike of 1996 and 1997 actually increased the number of poor families by 4.5 percent.” (Henderson). As you can see from this statistic, a raise in minimum wage in attempt to lift families out of poverty, and benefit minimum wage workers, failed in multiple ways. It created more competition among jobs that require little to no achieved skills, and contributed to an increase in poverty level. In a time of economic instability and recession, why take the chance in repeating history. In a New York Times article on raising state minimum wages, writer Steven Greenhouse encountered a persuading billboard in regard to this situation. “One group posted a billboard in San Francisco with a picture of a giant touch screen saying, ''Hello, may I take your order?'' To the right of the screen, the text reads, ‘With a new minimum wage, employees will be replaced by less costly, automated alternatives.’”(Greenhouse). As far-fetched as it sounds, the statement being made with this billboard is actually quite accurate. Common sense would tell you …show more content…
This projection from the article “Poverty and Homelessness” is a prime example of an argument that would be made in favor of an increase in minimum wage. According to article author Doug Hall, an increase of over two dollars to the minimum wage would put more money in the pockets of workers earning low hourly wages. He makes the argument that this increased income for the workers would, in-turn, lead to them spending the extra earnings, and stimulating the economy. What primarily needs to be taken from Hall’s argument is that it has no factual evidence that these consumers will spend these earnings back into the economy. Hall is basically stating that we should take the risk of increasing the minimum wage by over two dollars, and hope that the person’s receiving these extra earnings will spend them back in to the economy. What happens if these workers don’t make such wise decisions with their money? In a time of critical economic instability, it would not be safe to make this gamble. The increased cost of living (stated earlier) that would come with an increase in minimum wage is another problem that this argument is neglecting. If these consumers did decide to spend their increased earnings, it would equally be offset by this increased cost of