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Minimum Wage Debates
Minimum Wage Debates
History and Debate of Minimum Wage
Minimum wage is defined as the lowest amount that employers can legally pay their workers per hour of labor. Most jurisdictions do have laws in place to enforce a minimum wage. However, there are both benefits and drawbacks of this type of policy. Many supporters of minimum wage say that it increases the standard of living and keeps people out of poverty. Those who are opposed to it tend to believe that it increases unemployment and harms the less skilled workers.
The first minimum wage law was passed in New Zealand in 1894. Since then, many other nations have adopted similar policies. In the United States, the current minimum wage is $7.25. The state of Washington has chosen to establish a higher minimum wage of $8.67. These rates are not established randomly. In fact, they are the result of much research in the areas of economics, standard of living and inflation. Labor supply and the effects of rising unemployment are also considered when establishing minimum wage.
Minimum wage laws were established and are upheld with certain goals in mind. Those who support minimum wage laws usually believe that these goals are being adequately achieved and that this alone is enough justification to keep the laws in place. Minimum wage was initially established to reduce poverty. Establishing a minimum wage in the United States helped do away with sweat shops and insures that people are paid properly for their work. Minimum wage also protects younger workers and minorities from being paid less than others to some extent.
Proponents of Minimum Wage
Many do believe that minimum wage laws achieve these goals. They do ensure that workers on the low end of the pay scale are not underpaid because of their gender or race. They also do ensure that workers are given a fair wage. However, their effect on society as a whole and on those who are not currently employed is questionable. Supporters of minimum wage also believe that a minimum wage stimulates consumption and thus puts more money into the economy by allowing low paid workers to spend more. They also believe that it may increase the work ethic of those who are paid little and thus benefit employers. It also encourages people to join the work force, rather than seek other illegal means of earning money such as selling drugs or prostitution.
Opponents of Minimum Wage
Some people who are opposed to the idea of minimum wage believe that it is not accomplishing the goals it was designed to meet. In several instances, employment has decreased more than the increase in wages and thereby overall earnings are still reduced. Businesses are sometimes forced to hire fewer employees because they must pay minimum wage. Thus, fewer people have a job. Studies also show that very few low-wage workers actually come from families in poverty. Thus, minimum wage is more often imposed on the sixteen-year-old worker with his first job than on people who would otherwise be unemployed.
Other opponents of minimum wage believe that it can cause price inflation as businesses must raise their prices to accommodate the higher wages. They also believe it discourages further education of the poor. The United States currently has laws in place to ensure a minimum wage. Whether or not these laws should remain in place is a matter of debate. There are benefits and downfalls to minimum wage laws and nothing is cut and dry.
For Minimum Wage
Pro
Comment: At the very least, the minimum should be $0.
Comment: Discourages-employers-from-hiring-more-people-and-stifles-the-economy-for-businesses.
Comment: We should have a living wage for everyone. The hourly rate for all jobs in every state should be at least $12 per hour, including tips for those jobs where tips are made, i.e., $12 per hour plus tips.
Comment: We need to have a minimum wage lest the working masses be exploited.
Comment: Same as labor unions
Comment: If there is no minimum wage law, then there is nothing stopping corporations from taking advantage of the poor and desperate.
Comment: NEEDED.
Comment: Employers have a strong bargaining position and a strong incentive to oppress their employees if they can get away with it. We as a society should not allow this. The way we disallow this is through mandatory minimum wage, a maximum 40-hour (or even better, 30-hour!) workweek before overtime, occupational health and safety regulations, etc.
Comment: I support a minimum wage of around $5.00/hour but think our current minimum wage is too high and is actively causing U.S. jobs to leave for countries like China where minimum wages are much lower. I don't think we should trade with countries whose minimum wages are below $4.00/hour to promote a living wage not only for our workers but workers worldwide, and give our workers a chance to compete with their foreign counterparts for vital manufacturing jobs.
Comment: Protects consumer buying power. That prevents recession and keeps our economy going. Also it promotes a high quality of life around the nation.
Against Minimum Wage
Con
Comment: Encourages replacing jobs with automation; the government should provide welfare, not employers.
Comment: The minimum wage promotes exactly what it is claimed to fight against- Big business. Small companies that often rely upon a smaller salary simply because they can't afford any more, are forced into pay increases by the fact that an increase in the minimum wage to slow down big business, is also an increase in the inflation of the economy. People need to buy their goods from the grocery store. With more money in the market, the price increases. Small businesses must in turn increase their own payments so that their employees can afford more luxuries. It discourages more hiring, and encourages big-business. Why does it encourage big business? Because all of that money put into the market will either go straight to corporations like Walmart (with countless stores located in low-income neighborhoods) only to make the rich get even richer, and the middle class closer to the poor. Inflation will only affect how wealthy these large corporations are, because the money goes to them so that th
Comment: Imposing a wage floor above the marginal level of productivity causes unemployment.
Comment: Oh wait I do like the minimum wage. The lowest amount you should be able to pay someone should be whatever is in the contract you both signed oh snap. :P
Comment: See: Capitalism above^^^
Comment: Inflates the costs of labor and raises cost for small business owners. Also negatively affects the employment opportunities of younger people.
Comment: Corporations pay their workers for what their worth. If a corporation payed a worker nothing then that worker will probably quit.
Comment: Minimum Wage boosts inflation and highers consumer costs, thus leading to the US shipping jobs over to China.
Comment: Hurts the middle class more than the rich
Comment: "What good does it do to someone to know that an employer must pay him the minimum wage if the fact that he must be paid that amount is what keeps him from getting a job?"