I earn the minimum wage, I work 45 hours a week but still cannot afford a night out. New clothes. A holiday. Yet I listen to unemployed who can afford so much more. I do not expect benefits to be cut, but I do think its about time we earned a decent wage for a decent days work.
You can't support yourself in todays economy on the current minimum wage. And if you can, you barely get by. I've read the studies and ramifications. And sure the big boys upstairs would feel it in their checkbooks for a short while, but the long run would see great promise.
It is important for the minimum wage to be increased because parents that do not have degrees can not afford to support their families without government help because they simply do not make enough money. People that have not gotten degrees because they could not afford them or have had families early and do not have the time or resources to go to school can not get a job that pays over minimum wage, most of the time. Raising it would help these people afford to support their families on their own. Also the minimum wage is not keeping up with inflation making it harder and harder for people to afford things, which is affecting the economy even more because people are not buying, or they will buy cheap things that are made somewhere else, which stimulates a different country's economy.
Yes the minimum wage should be raised for one simple reason but I will give you many reasons to think about and something that nobody even thinks of.
The minimum wage should be raised because it has not kept up with inflation over the years. Therefore, its buying has declined by well over 70%. Because of this decline the minimum wage no longer does what it was intended to do. This intent was to give the lowest paid workers a decent standard of living and they were paid a real living wage. As a result of the fact that it no longer does what it was designed to do, the minimum wage should either be done away with totally or raised by a factor of 5 at the very least.
Everything we need to live is getting more and more expensive. From personal hygiene to food, to clothing. When is the Government going to see that people on minimum wage need to live also. Three weeks isn't enough time for the government to live like we do. Try a year.
Businesses all around complain that raising the minimum wage would be a bad idea as it would hurt business profits and for some businesses claim the increase would shut them down. There is a simple solution to this: just make more money. In 2006 The Departed came out and one of the scenes has some point to this debate. At one point a gangster is shaking down a small business man for money, the business man complains that paying the gangsters puts him in the hole with no profit, the gangster says "Well, make more f*****g money. This is America, if you don't make money your a f*****g d*****bag, so what are you going to do?" Similarly, to all businessmen arguing against higher minimum wages I say make more f*****g money.
The business cycle is determined by many parties such as government and citizens. To reduce the population of poverty in order to balance the wealth gap between rich and poor is not only governments responsibly, it also needs employers’ effort and cooperation. As we can see, normally rich are employers; similarly, poor are employees. Each of employees only get a small portion of firm’s profit; however, employers get the higher scale of its profit. The disproportionately in distribution of profit is the main reason in causing wealth gap as it make employers are getting richer and workers are getting poorer. Even though reduction in the wealth gap is taken long time, it is better than doing nothing for balancing the wealth gap.
The reason the government should raise minimum wage is because Americans who work hard should be able to make a living. Most of the money that these people make is insufficient. Most of their daily expenses, as of, phone bills, gas, and food can barely be paid off. An example of this would be a store like Wal-Mart. These people might not have a great education but at least pay them enough to which they are not struggling.
Minimum wage causes tax payers like me to pay for others food and health care. Statistics prove that if you leave money in the hands of people who need it the most, they are more likely to stimulate economic growth than average people. Also, workers should be insured enough money to live. Do you think it is fair that minimum wage workers receive less money than the federal poverty threshold yearly! I don't! Let's change the country. Raising the minimum wage to 9.00 dollars per hour is a start! We can do this America!
If the minimum wage is raised, businesses will be at the pinnacle of their game. If the minimum wage gets raised, the minimum wage workers will be able to spend more money, and in turn, buy more products. And if the consumer spends more money, then the businesses can afford to pay their staff. If the minimum wage gets raised, then the minimum wage worker's productivity will go up, because they won't have to worry about how they're going to pay their rent or how they're going to feed their kids. When the minimum wage is increased, the amount of jobs lost will plummet; the businesses will be able to afford to hire full-time staff, and that will make a solid foundation to build upon.
If the minimum wage is raised, workers working hard every year can live past the basic necessities. Every year, the minimum wage in California gives minimum wage workers about $16,000. When the minimum wage is raised, the workers will get a much needed $2,000 in supplement, totaling at $18,000 a year to buy necessary things for living. According to wikipedia, the poverty level "for a family of 4 with 2 children under 18 is $22,162." So with the income of $9.00, two minimum wage parents will earn $36,000; $13,838 more than the poverty level. If they had earned the normal 8.25, then a family of 4 with 2 children under 18 will only have $9,838 above the poverty level. 4,000 is a lot of money, and instead of being just above the poverty level, you don't have to live merely on the basic necessities; you can reward yourself for working a full-time job, and working hard.
While minimum wage is not what we need as a "living" wage, it is not something that should be regulated or artificially inflated. Raising the minimum wage solves nothing. It results in higher cost of goods, higher taxes levied on businesses, higher unemployment, higher the poverty level, etc. You can raise the minimum wage to $75,000 a year and you will end up with a $75,000 a year poverty level.
We need to reduce our reliance in "low" cost imports. Given the scenario where there is NO imports of ANY goods into the United States and we have to rely on what we can produce and sell in country, what impact would that model have to our economy? Every purchase made would be directly circulated back in to the US economy employing more US workers. Currently I could not afford to buy "Made in the USA" items (providing they are available) more than 10-20% of the time. The poorer the population becomes the more we look to cheaper alternatives (goods). The cheaper goods are produced outside of the United States. It's not realistic to think we could become 100% self sufficient but there is a large gap that can be narrowed.
Encourage those that "have" to spend their money (and increase their spending) in the US on US made goods instead of penalizing them. Remember the "Luxury Tax" in the 80's? I think it was the 80's. I have to find that info again. It devastated the boat building industry in the United States and cost more in unemployment than it raised in tax revenues. It sent those that "have" scurrying out of the country to buy their boats, jewelry, etc. The boat building industry has never recovered to where it was before the "luxury tax".
There are many more issues that we should be focusing on that would provide a better "living" wage as opposed to trying to band aid the problem with a minimum wage increase.
Just say "no" to band aids.
No, the government should not raise the minimum wage. Sadly, raising the minimum wage will hurt the smaller businesses that cannot afford to pay their employees more than what the minimum is now. Raising minimum wage is a vicious circle – the government raises it because it hasn’t been raised in years and as soon as it’s raised, everything else goes up immediately to compensate, so there really is no point at all in trying to raise it – it is a “no-win” situation.
The minimum wage was never designed to be a "living wage", it was, for all intent and purpose, to be a safeguard against legalized slavery. If a company wants decent workers, they will pay a decent wage. If the jobs are too low paying, no one will want them and it will force the rates to be increased. Also, if the rates are too low, it will also discourage illegal immigration. A minimum wage job is a starting point, not a career. And continuously increasing that wage only raises the costs of all goods and those earning that minimum wage will have their income go less farther.
Many people dedicate mass amounts of their precious time fighting to raise minimum wage. Their perception of minimum wage, however, only goes skin deep; their belief is that it should be a living wage, so that a low income laborer could provide for his or her family. The problem with that concept, as previously mentioned, is that they only scratch the surface when they decide what minimum wage should be set at.
There are two issues involved with ceilings and floors in the market place, shortage and surplus. When a ceiling is imposed, it causes a shortage, because the price of which a product has to be offered does not cover its cost of production; and producers don’t waste resources on things that aren’t profitable. The other aforementioned issue is surplus. Surplus originates when price floors are imposed, and you’re not allowed to pay any lower than the arbitrarily set price; even if the value of the product is less than the price that has to be charged according to law. An example of a surplus would be the correlation between minimum wage and unemployment. Businesses can only pay their employees so much for their work, and they will only compensate them for the value of output an employee produces. If the value of labor is set at an arbitrarily high price, it is no longer economically feasible for a business to higher an employee whose units of output don’t equal or exceed his or her compensation for work.
The phenomena that exists under these circumstances is often overlooked by many; and a recession only exacerbates the issue. While many highly skilled workers are out of work as well as low skilled workers, they will most generally be competing for the same jobs during a recession. A business, in turn, will be more likely to hire the high skilled workers over the low skilled workers, because they will get more output for the same price at which they'd pay for less output from someone with a lower skill set.
Minimum wage should not be increased because prices will raise. In order to pay employees the new minimum wage, business owners will have to raise the cost for their service.
Secondly, an increase in pay for a minimum wage worker will mean an increase in taxes for them. The poverty level for NC is $11,490 per year for a single person. If one person make $10,000 per year and minimum wage is raised from $7.50 an hour to $9 per hour, then their yearly income could increase to around $13,000. Even with the raise in yearly income, the increase in taxes would mean the minimum wage would not be enough to pull them out of poverty.
Lastly, if minimum wage is increased the employment will decrease. This is because business owners may not be able to afford to keep all employees even with a raise in prices. Employers will have no choice but to fire people who barely make enough money to support themselves.
Clearly, keeping minimum wage where it is is the better option.
When the minimum wage is raised, the status quo changes in small businesses. Because it has been raised, small business owners can no longer support the same amount of employees and because of this they end up reducing hours and/or the number of employees. This gives fewer opportunities to students trying to get part time jobs to pay for their education and others who are in between jobs and need something to support their families for a short period of time.
Raising the minimum wage backfires, as it makes it more difficult for teens and students to acquire beginning jobs. It increases business costs without a concrete knowledge of the factors involved in their decision-making and hiring process. The government should not be taking actions which may make it more difficult for workers to find jobs, however well-meaning they may be.
If minimum wage increases business cost will rise which will lead to layoffs and higher consumer prices. Once consumers prices rise to a certain level than the people earning the new minimum wage will want another increase. Its just an ongoing domino effect and in the end its pointless. Plus most people earning minimum wage are unskilled, uneducated, earn tips, or don't have job experience.
With the current recession of the US and the subsequent economic status of many of its citizens, many believe that raising the minimum raise is the solution, improving the quality of life for all. In fact, rather than improving conditions, that action would prevent full employment and delay economic growth. Small business owners struggle today and when businesses have allocated a certain amount of money for overhead, and overhead costs increase, the businesses will suffer even more, especially when considering the fact that a raise in wages will not increase profitability. People that are currently making above minimum wage will get a increase in wages as well.
An increase in payroll would also force business owners to compensate. For example:
-Firing some employees
-Limiting hours of some employees so their take-home pay would end up staying constant as when the wage was lower
-Cutting the business owners’ own pay
Having an employees’ hours cut would cause the business profit to be less, going against the spirit of entrepreneurship
Too much government regulation proves to have more consequences than benefits. In the United States’ current economic state, the free market can handle the issues of unemployment and poverty than government interference. Ultimately, the minimum wage should be left between the employer and employee. Business owners should pay their employees what they think they’re worth, it’s their own business, their own money, and if employees do not think that the conditions are fair, they have the option of seeking employment elsewhere.
If the minimum wage was increased even the slightest, then the price of goods is raised just that much. On top of that, employers will be paying more for services, so they can't afford as many workers. So not only are there fewer jobs, but a higher cost to everyone, employed or unemployed, minimum wage or millionaires.