The Instigator
Triiozz
Pro (for)
The Contender
NPhyzics
Con (against)

Minimum Wages Should be kept low

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Argument Due
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Time Remaining
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Voting Style: Open Point System: 7 Point
Started: 1/10/2019 Category: Economics
Updated: 1 day ago Status: Debating Period
Viewed: 197 times Debate No: 119833
Debate Rounds (5)
Comments (7)
Votes (0)

 

Triiozz

Pro

The minimum wage is the minimum amount of money that an employer must play an employee as legislated by the law. The federal minimum wage in the USA is $7. 25 USD a week as of 2018 with some states even raising it higher than this.

The problem with minimum wage is that it is not created to support the life of a person but to develop an experience into what being employed would be like. This is shown to be what has been put in place for a while by the graph (1) which shows the highest amount of population earning minimum wage would be between the ages of 18-21 when most people find their first full-time jobs.

https://www. Heritage. Org/sites/default/files/~/media/images/reports/2013/02/ib3866_chart1-850. Jpg (1)

Additionally, Minimum wages are a big disadvantage to businesses and employers, Especially small businesses that do not make a large amount of profit but are required to pay their employees a high amount even if their work is worth less than the minimum wage. Keep in mind that labour is a good and if the government steps in to raise the minimum wage that means that this is an intervention in the prices of the market and threatens the functionality of the market and its ability to offer the good of labour effectively to employers and businesses.
NPhyzics

Con

Raising the Minimum wage will benefit companies and the country more than critics realize. To begin, Raising the minimum wage will stimulate spending among consumers. Many Americans who are middle-class and below struggle to even pay the necessities of life. If those who work minimum wage begin to earn more, Money the country gets from income taxes will increase as well as the money the workers take home in pocket. Once workers have more money, They will be more inclined to spend more. Thus, Giving companies the money back that they had to give back. "

It is also thought that small businesses may suffer from the increase in pay. However, Most small businesses do not hire much help in the first place and a few more dollars an hour will not make or break the bank. If the small business will suffer from this small pay raise, The business will need to find ways to become more successful because with or without higher pay, Business owners should be able to afford a few extra dollars since the worker is helping the business make money.

I also hear the argument that raising minimum wage will raise the prices consumers pay. Where I live, Minimum wage is around 12 dollars and I have yet to see a Mcdonald's Cheeseburger raise above a dollar or prices for groceries at Walmart raise. As a matter of fact, Research has been showing that prices for goods actually are not raising hardly at all when minimum wage has been increasing(https://upjohn. Org/research-highlights/does-increasing-minimum-wage-lead-higher-prices). " The reason is because consumers wealthy or not know how much is too much to spend and simply will not buy products that are too highly priced. Raising minimum wage will"help workers, But will force the wealthy to pay slightly more to hire those who help them make their money.
Debate Round No. 1
Triiozz

Pro

Con makes good points regarding that raising the minimum wage could stimulate more spending by the consumers, But the truth is that many people that do make minimum wage would not have much spending power in the economy because of how low their salary is (being at minimum wage) and even if this is raised the minimum wage would still be too low to have an impact on the economy that would be regarded as more positive. If someone were to live on a minimum wage, They would barely even spend their money on highly priced goods and only buy cheaper goods essential for their survival (food, Water, Housing) which would not return much to the economy or the businesses and employers because the money would only go to necessities and nothing else.

Of course, Small businesses do not hire many employees but even so, Let's say a small business has two employees. One's work is worth $10 an hour and the other is worth $30 an hour. If the minimum wage is raised to $20 an hour (exceptionally high, But it's a scenario) then the employee with the work of $10 hour will be raised to $20 even though their work is not worth that much and they are being paid more than they deserve in that line of work. What will most likely happen is to make up for the expenses of the business spending $10 an hour more on that employee is that the employee with $30 an hour will be decreased down to the minimum wage of $20 an hour even though their work is worth more. The employee with $30 an hour, Now earning $20 an hour will now be spending less in the economy because they earn less and would now most likely spend their money on necessities mainly. Either way, The business itself loses the ability to reward its employees to which their work is worth and expenses are increased. The impact would be more complicated and even greater in a realistic scenario in which businesses do have more than two employees and the pay of most employees that work for the business will be affected. These impacts harm small businesses more since their profits are limited and do not have much to spend which will definitely spend more than "a few more dollars an hour".

Either that would happen, Or to manage the expenses if the business does not decrease the wage of the employee of a higher worth of work then the business would simply just employ less people so that they would not have to spend anymore on wages and gain more profit. An article by Forbes (https://www. Forbes. Com. . . ) cites a study which has found: "a 1% increase in wages leads to a 0. 3% to 1% decrease in the employment rate depending on whether wages increase citywide or in only one industry. ". The less people are employed, The less people will earn an income. The less people earning an income means there would be less money being spent from these people and less money will go back into the economy.

Con has also stated that "If those who work minimum wage begin to earn more, Money the country gets from income taxes will increase as well as the money the workers take home in pocket". If unemployment rises and income lowers, There would be no income tax gained from unemployment people in the first place and even then, The income taxes gained from the people with minimum wage would be low either way because the tax rate wouldn't make much of an increase when in perspective to the more upper-class people being taxed because the tax rate would be low anyways for low income earners and paired with the fact that these employees wouldn't even earn much in the first place the amount of money being taxed would still be low.
NPhyzics

Con

NPhyzics forfeited this round.
Debate Round No. 2
Triiozz

Pro

Triiozz forfeited this round.
NPhyzics

Con

NPhyzics forfeited this round.
Debate Round No. 3
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Debate Round No. 4
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Debate Round No. 5
7 comments have been posted on this debate. Showing 1 through 7 records.
Posted by Triiozz 1 week ago
Triiozz
Oh crap, The link for the source in the second round is bugged. The article is called "How Higher Minimum Wage Impact Employment" but linking doesn"t really seem to work so if you search it up you should find it, By Forbes.
Posted by Triiozz 1 week ago
Triiozz
Oh my bad, Made a mistype definitely then. Points can be taken off that ://
Posted by Athias 1 week ago
Athias
The minimum wage should be abolished entirely, Or at least, Lie outside the scope of policy pronouncement. The minimum wage fundamentally creates unemployment. There's no way around that whether the wage be "$7. 25" an hour or $15.
Posted by Thoht 1 week ago
Thoht
It is hourly, Triiozz.
Posted by Triiozz 1 week ago
Triiozz
Well, I'm not American and that's what I found. That's just the minimum although states can raise it higher.
Posted by Thoht 1 week ago
Thoht
"The federal minimum wage in the USA is $7. 25 USD a week"

I'm hoping this is a mistype.
Posted by Triiozz 1 week ago
Triiozz
To whoever accepts the debate, My bad because the graph link went out a little a bit weirdly. If you copy and paste it into google and go to images it should be the first graph available.
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