A recent proposal by democrats is calling for a raise in the minimum wage to $10.10. The raise would bring around 900,000 families above the national poverty line. According to sources, It will also raise the income of around 16.5 million workers, but as we learned last unit in economics, the raise of the minimum wage will also cause a decrease in jobs. An estimated 500,000 jobs will be lost due to the increase. When the proposal was released, it was brought with much opposition, and a report was underway to try to deter any future vote by congress by 2016. The main argument against is that our country's main concern is unemployment, and the raise of minimum wage will have an opposite effect of what we are trying to do as a country.
http://management.fortune.cnn.com/2014/02/19/minimum-wage/?iid=SF_E_River
I think that this recent report for the CBO, backing the argument that raising the minimum wage would cause an extreme job loss, gives a more compelling argument for people in opposition of raising the minimum wage. From this report, it does appear that it would cause a lot of damage to raise it at this time, but it would have benefits to workers who could keep their jobs.
ReplyDeleteThere are a few things that are concerning with raising the minimum wage. Yes it would be great for people with minimum wage jobs to attain more money, but like the article said many jobs would be lost. Not only would jobs below ten dollars be raised but also the salaries for the people making a little more then ten dollars per hour would need to be raised. Many workers would believe that their job was more important then the others and demand higher wages most likely through unions. However workers would get a short term boost of motivation with the higher incomes creating more production of goods.
ReplyDeleteI am not a fan of raising the minimum wage at all. Minimum wage jobs for the most part are and should be part time jobs for people such as students and teens, not full time jobs. I agree, that someone working for minimum wage does not earn enough to support a family, but I do believe that it should be the goal of people to work hard enough to get hired at a place where such wages can be earned. Not the minimum.
ReplyDeleteThe people of our country (for the most part) want to do what's best for them and for the well being of their loved ones. In my opinion, raising the minimum wage will decrease their chances of doing this. Jobs are far more important than the increase of 16.5 million workers. 500,000 people out of a job will be incredibly detrimental.
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