Raising Minimum Wage Affect

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Raising Minimum Wage

Raising Minimum Wage


Thesis Statement


2. Discussion

(a) Increases help escape poverty

(b) Benefits

(c) Raising minimum wage decreases government funding

3. Conclusion

Raising Minimum Wage

Thesis Statement

Raising minimum wage decreases government funding and increases disposable income but it also encourages inflation and raises the unemployment rate.


The concept of minimum wage is a complex economic program pitting an employee's benefit of a living wage against an employer's hardship of forced policy. In this critical analysis of the minimum wage, each side presents an argument for or against the program. This examination provides an insight into whether minimum wage serves as a social and economic safety net or a welfare crutch with crippling effects for those affected. The presentation of facts and figures explores wage requirements for employment of adults versus minors, as well as, displacement of workers based on rising wages. An increasing deficit between the minimum wage and the national poverty level will also be covered with a final conclusion of the team's stance on the subject of minimum wage.


There are many reasons to either abolish the minimum wage or leave it alone, in this section we will review some of those reasons such as - raising the minimum wage will not affect the people the government is intending to help. The Florida State University Employment Policies Institute (EPI) is a nonprofit research organization dedicated to studying public policy issues surrounding employment growth. In particular, The Employment Policies Institute's research focuses on issues that affect entry-level employment. The EPI did a study of the proposed minimum wage increase in the state of Missouri and found. In recent years, the movement to increases minimum wage has been active in states across the country.

Increases help escape poverty

Advocates of these wage hikes argue that the increases will help low-income families escape poverty. While this argument is emotionally compelling, it ignores the unintended consequences that the proposed increase would create such as job loss among the most vulnerable employees and displacement of low-skilled adults by wealthy teens. Even worse, the mandated increase overwhelmingly confers its benefits on employees who are not poor, while those who are bear a disproportionate share of the costs.'(Macpherson 2006)According to this study, Dr. David Macpherson found using current population survey data and labor demand estimates, this research shows that the proposed increase will be an expensive mandate on the employers and citizens of Missouri. Even more troubling, this enormous expense will do little to increase the quality of life for the state's poor and it will greatly worsen conditions for those who lose their jobs following the increase (Macpherson 2006). The majority of those who will be affected (86.3%) will be teens who are living with their parents or relatives, single earners without children, or dual earners. This explains why the average family income of an affected employee is $46,167; these are not the people the government is trying to help.


About four-fifths of the benefits will go to families above the poverty line, ...
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