The Government should not raise the Minimum Wage
Debate Rounds (4)
No new arguments introduced by Con in Round 4
I am in favor of not raising the minimum wage.
If we were still on the gold standard where there was practically no inflation, then I would take the same stance as you. But in a fiat currency system, it's inevitable. Otherwise you're just going to bankrupt the poor and make people even MORE reliant on government subsidies.
Therefore, Government is forced to continually increase the minimum wage.
Jobs-"Indeed, evidence of employment losses goes all the way back to 1938 and first federally imposed minimum wage. The U.S. Department of Labor concluded that that first 25-cent minimum wage resulted in the loss of 30,000 to 50,000 jobs, or 10 to 13 percent of the 300,000 workers affected by the increase.
More recently, Michael Hicks of Ball State University looked at the impact of the July 2008 minimum wage increase on unemployment rates in the United States and concluded that a 10 percent increase in the minimum wage results in a roughly 0.19 percent increase in unemployment, meaning the loss of about 160,000 jobs."
A study was also done by Joseph Sabia and Richard Burkause for the Employment Policy Institute concluded that even if one were to raise the minimum wage, it would result in a loss of 1.3 million jobs. According to their research, the minimum wage increases between 2003 and 2007 have no significant impact on poverty rates.
The minimum wage does not solve the jobs problem, but it actually makes people lose jobs.
Hurts small businesses- America is a popular place for start-ups. One of the essential things to helping a small business grow is not raising the minimum wage. Lets take Europe for an example. Most countries in Europe have high minimum wages, or a living wage. https://en.wikipedia.org...
France has a minimum wage between 10 and 15 dollars. 66% of people say it is hard to start a business there.
Great Britain also has a minimum wage between 10 and 15 dollars. 59% of people say it is hard to start a business there.
Germany has a minimum wage between 10 and 15 dollars. 46% of people say it is hard to start a business there.
All this data proves is that minimum wage hurts small businesses, and it makes it easier for large corporations to rise. This ruins innovation and creativity that capitalism has to offer, and in turn creates crony capitalism.
Raising Prices- Raising the minimum wage will also raise prices. https://www.purdue.edu...
Statistics show that raising the minimum wage to 15 dollars an hour will cause prices to increase 4.3%.
Harms of raising minimum wage:
Loss of 1.3 million jobs
Makes no impact on poverty
Makes it harder to start a business
Prices increase 4.3%.
Thank you for the case Pro
Let me point out a few things that led up the the Legislation of minimum wage that Roosevelt instituted back in 1938. You have the Federal Reserve starting in 1913, lax borrowing that Americans used to gamble on Wall Street (creating the Roaring 20's). Let by a recall of the loans, sucking the money out of the market, leading to the crash, leading to the confiscation of American's wealth (outlaw gold), followed by many progressive types of legislation (including the minimum wage).
You have to keep in mind that with the legislation of a minimum wage, there were also minimum hours required too.
The U.S. federal minimum wage was first established during the Depression, and it has risen from 25 cents to $7.25 per hour since it was first instituted in 1938 as part of the Fair Labor Standards Act. Despite the increases, inflation has eroded its value; returning it to the value it held in 1968 would require an increase to nearly $10 per hour. - See more at: http://journalistsresource.org...
Keep in mind, I'm stating that the minimum wage must be increased (to basically keep pace with inflation). Not saying I'm in favor of any specific dollar amount (ie. $10, $15, $20 a hour), but in due time, it will have to reach these dollar amounts eventually. To support my argument, I will be focusing on inflation (monetary).
Based on our current fiat monetary system, the money supply is dependant on the creation of debt to create new money to put into circulation. We didn't see practically an inflation (aside from a few wars), until the creation of the federal reserve in 1913. So the ideas of minimum wage couldn't have even been contemplated until we started to have a decrease in our purchasing power. Of course, with Bretton Woods and the stealing of our gold by the federal government, resulted in a 57% drop in the value of our dollar overnight.
In your last two paragraphs, may I mention that those individuals are basing their estimated projections from setting the minimum wage at a set dollar amount ($15). I cannot argue with their projections, I however am taking the stance that (Minimum wage in General, will have to increase).
Our inflation rate is very low as stated in this article, because the Federal Reserve is pumping trillions of dollars into our economy.
You never really give a statistic saying how inflation is high. All you say is that we need to increase the minimum wage to keep up with inflation which is not clear. This evidence that I have stated here claims that inflation is low, and will stay low.
Minimum Wage will have no impact on poverty:
2% of Americans are paid minimum wage which is an extremely insignificant number. People cannot act like the minimum wage actually has an impact on the economy. It is just the start pay for a job. Also, you never explain the link between the minimum wage and inflation. Especially, since only 2% of American are paid minimum wage, than how does your link really work in the circumstances of the status quo,
You also have not disputed the harms of raising the minimum wage. It is almost certain that if you raise the minimum wage, there will be jobs lost.
Here are the numbers:
25 cent raise=30,000 to 50,000 jobs lost.
10% increase=160,000 jobs
2007 Minimum Wage=$5.85
These increases lost jobs, and had no impact on poverty.
Con must answer these questions in the next round:
How are you going to handle a job loss that is over 160,000 jobs?(Especially with a congress split on what to do in such a situation)?
Explain the link between inflation and the minimum wage.
Under the circumstance(2% of Americans get paid the minimum wage), how are you even going to raise the minimum wage with inflation already controlled?
Thank you again for accepting the debate.
Sgt4Liberty forfeited this round.
Sgt4Liberty forfeited this round.
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