Effects of Raising Minimum Wage

Raising A Minimum Wage
A 2015 CBS/New York Times survey found that 71 percent of Americans favored an increase to the
minimum wage. (Doyle, pg 2). What if I tell you that raising a minimum wage is not a good idea for
our society? Would you believe that increasing a minimum hourly rate might cause more harm than
good in a long run? What if setting a high minimal wage will actually kill many jobs and increase
unemployment? Did you think that this "raising minimum wage" games are the never ending loops,
and are created to manipulate people, as they do not really improve or raise the quality of people's
life?
A lot of politicians, to be perceived as caring, concerned and compassionate, love to talk about
raising a minimum wage. And immediately majority of poor people see the politicians as heroes
who stood up to protect them from greedy employers. Now people perceive the issue with the
minimum wage as a war between employees and employers. This is happening because not too
many people know what raising a minimum wage actually means, what are the long and short time
effects, who is going to be effected and how, what will happen to prices and standards of living,
where the money will come from, what will happened to unemployment and inflation rate. People
seem do not understand that everything comes with a cost.
Whether to raising a minimum wage, is well–argued question between businessmen's, economists,
and politicians. As the issue is very complicated and complex, as it depends on different
... Get more on HelpWriting.net ...

Increase In Minimum Wage
The minimum wage is a metric which dictates the minimum cost that low–wage labor has on a firm
(Lopresti and Mumford 2016). Wages are a cost, but may conversely be understood as an incentive
for employees. The minimum wage determines the quality of work which is supplied to employers.
An increase in the minimum wage improves wage–growth for workers, increases the supply of
workers, and creates a competitive environment which allocates jobs to the most qualified workers,
thereby increasing efficiency and quality in the market. First, the minimum wage sets a common
standard for how employers determine pay for low–wage workers. Lopresti and Mumford (2016)
state that an increase in the minimum wage less than 5% has a negative impact on wages for low–
income workers; a minimum wage increase greater than 20% showed significant improvement in
the wage–growth of the same group. Setting a low wage–growth standard is harmful to the worker.
However, a significant increase in the minimum wage would set a high wage–growth standard. A
high wage–growth, for the employed worker, increases their income and financial stability. ... Show
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The minimum wage, by the nature of its pay, attracts workers with minimal experience and training.
The cost of increasing the minimum wage may not appear beneficial. Ippolito (2003) argues that an
increase in the minimum wage widens the pool of workers who apply for jobs. The larger supply
includes higher skilled workers who are willing to work hard to retain or obtain a job. Kaufman
(2010) states that an increase in the supply of workers brings the labor market to a competitive
equilibrium and incentivizes firms to retain or hire employees who provide high quality work since
the marginal cost to pay inefficient employees has

Minimum Benefits Of Minimum Wages
Minimum wages are described as "the minimum amount of remuneration that an employer is
required to pay wage earners for the work/services performed during a given tenure, which cannot
be reduced by collective agreement or an individual contract". Minimum wages can be established
by statute, competent decision authority, a wage board, a wage council, or by industrial or labour
courts.
The significance of minimum wages is to shield workers against disproportionately low pay. They
help safeguard an equitable and just share of the fruits of progress to all, and a minimum living
wage to all who are employed and in need of such protection. Minimum wages can also be a part of
a policy to overcome poverty and reduce inequality, including those ... Show more content on
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This potential loss decreases both firms' surplus and workers' surplus. The increase in job search will
waste resources and time which contributes to the inefficiency of minimum wage.
Dead–weight loss highlights the loss in possible employment, which could have been achieved by
labour market approaching equilibrium.
Free–Market
With Minimum–wage Case 1
With Minimum–wage Case 2
Consumer Surplus
1–2–3
1
1
Producer Surplus
8–9
2–3–4–8–9
2–9
Government Supports
–
–
LS–LD
Cost of Government Purchase
–
–
3–4–5–6–7

Total Surplus
1–2–3–8–9
1–2–9
1–2–9
Dead–weight Loss
–
3–8
3–5–6–7–8
In both cases of minimum wage, there is an overall increase in labour supply and an overall
reduction in demand of labour. Hence, implementing or increasing minimum wage results in loss of
jobs theoretically. However, it also relies on the country 's economic activity which may or may not
result in loss of jobs. Additionally, case 2 reflects the scenario where the government delivers
unemployment benefits to its unemployed citizens. In this case the dead–weight loss is catered by
the government which in return puts a great deal of financial burden on the government.
Observing with the perspective of the general population
– Improved minimum standard of living – It facilitates the lowest paid strata of the society to desire
for a better standard of living.
– Incentive to work – It encourages unemployed population to find job, due of higher returns for
their

Minimum Wage
History of the Minimum Wage
· 1938 –– The minimum wage was first enacted into law as part of the Fair Labor Standards Act
(FLSA) of 1938. The original minimum wage applied to workers engaged in interstate commerce
and the production of goods for interstate commerce. In 1938, this applied to roughly 11.0 million
workers out of a total of 54.9 million workers. The minimum wage was set at $0.25 per hour.
· 1961 –– Amendments to the minimum wage law extend coverage primarily to employees in large
retail and service trades as well as local transit, construction, and gasoline service station employees.
· 1966 –– Amendments to the minimum wage law extend coverage to state and local government
employees of hospitals, nursing homes, and ... Show more content on Helpwriting.net ...
Many economists believe that the minimum wage raises the wages of middle–class teens while
doing little to help the working poor get out of poverty. Edward Gramlich (1976) found that any
income gains among teenagers resulting from the minimum wage are about evenly split between
high–income and low–income families. The vast majority of minimum wage workers are not the
primary wage earner in a poor family; Richard Burkhauser and T. Aldrich Finegan (1989) estimated
that in the mid–1980s only 7 percent of low–wage workers were heads of families living in poverty.
Burkhauser, Kenneth Couch and David Wittenberg (1996) found that almost 40 percent of all
workers directly affected by the minimum wage increases in 1990 and 1991 were from families in
the top half of the income distribution, with 4 percent of affected workers in the top decile.
The minimum wage does have the potential to raise the incomes of some poor households,
particularly those headed by women. About 40 percent of poor adults worked in 1994, and low–
wage workers contribute about one–half of household earnings. Over one–fourth of all workers in
the lowest family income decile were affected by the 1990 and 1991 federal minimum wage
increases, according to Burkhauser, Couch and Wittenberg. Because women tend to have lower
earnings than men, working women are more likely to be in poverty. In 1987, the earnings of nearly
18 percent of working female household

Raising Minimum Wage
The minimum wage for workers should be increased. First of all, raising the minimum wage would
reduce the amount of people who are in poverty. Moreover, raising the minimum wage would lead
to less premature deaths and allow many people to live healthier lives. Finally, raising the minimum
wage would reduce the amount of crime the occurs. Let's take a look at some proof.
If the minimum wage is increased for workers then there would be a decrease in the amount of
people who are in poverty and allow them to afford their basic essentials for their everyday life..
According to the article Should the Minimum Wage be Increased? it says "According to a 2014
Government–related Budget Office report, increasing the minimum wage to $9 would lift 300,000
people out of poorness, and an increase to $10.10 would lift 900,000 people out of poorness." To
begin, by increasing workers pay it would lift an amount of people out of poverty, allowing them to
provide for their families and buying foods that would be needed to live an everyday normal life. It
would allow adults that are starting off their life to afford their everyday essentials such as food and
clothing to wear. The article Should the Minimum Wage be Increased? also says, "A 2013 study by
University of Massachusetts at Amherst money–flow expert Arindrajit Dube, PhD, guessed (a
number) that increasing the minimum wage to $10.10 is "projected to reduce the number of non–old
living in poorness by around 4.6 million, or by 6.8 million

Minimum Wage Effect
Minimum Wage and the Effect of Unemployment in the Low Skilled Sector
The Federal government mandates laws to help protect and serve the people of the United States of
America. Citizens always have a say in the matter with the influence of their vote or by letting their
Congressional representatives know of their support or anger of the current policies. One of the most
recent concerns is that of the minimum wage and its ability to provide a living for the workers that
are at jobs that provide this minimal benefit. Although, a minimum wage increase will not provide
enough income for a current livable wage. Minimum wage jobs provide the foundations of skills for
future success for the current low–skilled sector. Raising the minimum wage ... Show more content
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The need for education for more and more low–skill workers and is increasing with the changing of
the skills needing to perform the tasks that are required by the industry of their choosing.
Economist and other scholars believe that the Federal Government should not bring the minimum
wage on us and that the capitalistic economy will be able to sort the minimum wage and low skill
workers employment itself. Tim Worstall, a Fellow at the Adam Smith Institute in London, uses the
teachings of Karl Marx. "He said that in something roughly resembling a free market for labor, and
such a market that was at something close to full employment, then the workers' wages would rise
along with

Minimum Wage Thesis
The modern minimum wage was established by the Fair Labor Standards Act of 1938 (FLSA)
Franklin Roosevelt signed the law which passed by an overwhelming majority (Grossman, 1978).
While a minimum wage is certainly an altruistic idea and one that receives widespread public
support, there is a question among economists such as Richard Burkhauser as to the effectiveness of
minimum wage on reducing the level of poverty. "Minimum–wage increases (1998–2003) did not
affect poverty rates overall, or among the working poor" (Burkhauser & Sabia, 2007). In addition,
some of the minimum wage laws which came before the FLSA were challenged in the Supreme
Court, such as in Schecter Poultry Corporate v. U.S in 1935, and declared unconstitutional. While
there ... Show more content on Helpwriting.net ...
The law was controversial amongst business owners who were required to pay workers minimum
wages based on hundreds of different industry codes. The codes created confusion amongst workers
as well as corporations and resulted in situations where workers were making different hourly rates
at different times of the day (Jones, 2011). The NIRA was eventually ruled unconstitutional by the
decision in Schecter Poultry Corporate v. U.S in 1935. Finally, Congress passed the Fair Labor
Standards Act of 1938, the last major piece of the New Deal legislation, which was signed into law
by Franklin Roosevelt. The FLSA was the first blanket federal minimum wage law passed by
Congress, which covered workers in nearly all industries. The touted benefits of a federal minimum
wage were stated by FDR, "I laid down the simple proposition that nobody is going to starve in this
country. It seems to me to be equally plain that no business which depends for existence on paying
less than living wages to its workers has any right to continue in this country" (Roosevelt, 1933).
Roosevelt wanted to be clear that he did not define a living wage by the ability to survive rather that
those receiving a minimum wage should be living in some level of comfort. The FLSA of 1938
established a minimum wage of "$0.25 an hour for the first year, $0.30 an hour for the next six
years, and $0.40 an hour in particular industries" ("Fair Labor Standard...",

Pro Minimum Wage
People all across America believe that minimum wage is a good thing and helps people without an
education have a normal life, however others believe it is causing poverty and homelessness among
the citizens. Minimum wage was made to provide enough money to live just above the national
poverty line.But over the years the cost of living has increased while the minimum wage hasn't.
Today, the national minimum wage is $7.25, which is less powerful than the minimum wage was in
1968. This is because the minimum wage was $1.60 per hour, which seems low but back then $1.60
was enough to support a three person family, whereas today the minimum wage can barely support
one person. All throughout the U.S., workers have been fighting for a higher minimum ... Show
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It's has been proven that a worker with one child struggles to provide, sometimes not going to the
doctor in order to pay rent. Others go without eating.Minimum wage can support a 1–person family
but how much is that person going to have to give up if they run into more expenses. If raised, jobs
will increase,the government and economy would have more money because more workers are
making money, businesses and companies will strive and flourish from a fair increase.Minimum
wage is too low,so low that it shows workers whats its like to be poor, it shows the what tis like to
not afford basic things. The minimum wage was at it's highest in 1963 and has been slowly
decreasing as the cost of living continues to raise, The government has so much money but why still
yet is there no raise? The minimum wage is a big issue but what are some solutions to that issue?
Stated by the article, "Minimum Wage tracker".Written by the Economic Policy Institute.According
to them 21 states have raised their own minimum wage and 7 states have stuck with the federal
minimum wage($7.25). As of right now Washington D.C has the highest minimum wage of $11.50
and Hawaii has a new wage of $9.25 as of january 1, 2017. This seems good but the cost of living in
Hawaii is more than the cost of living in Washington. So then why are workers paid less in

Minimum Wage Is The Minimum Amount Of Compensation An...
According to investopedia.com, "minimum wage is the minimum amount of compensation an
employee must receive for performing labor. Minimum wages are typically established by contract
or legislation by the government. As such, it is illegal to pay an employee." The minimum wage is
something that many people start off when commencing their own dependent life. Many lower
classes depend on the minimum wage so that they can feed their families and try to live a prosperous
life. The minimum wage in the United States can be underestimated, and many do not view it as an
important role in the economy. The minimum wage in the U.S should be raised due to the positive
effects it may have on the labor workers, the increase in productivity, and the benefits it may bring
to minimum wage workers. Minimum wages are a very important aspect when it comes to
evaluating the economic health of a country. The minimum wage is the one detail in a country's
economy in which many low class families take into consideration. There are many families that
struggle with having to buy groceries and being able to purchase items that the children require for
schooling. As mentioned earlier on, the minimum wage is a substance in which many people of
America live off of and hope for an increase in pay. Humans are constructed from proteins, carbon,
and other scientific elements, but not require money as to make one human. The need for money in
one's life has increased over the course on this nation's existence.

Essay On Minimum Wage
The Economic Effect of a Minimum Wage Increase in the Fast Food Industry
A question plaguing economists in the news the last couple of years is what would the effect of an
increase in the fast food industry minimum wage be for the workforce. Better yet, how would it
effect the fast food industry itself. There have been certain areas of the country that have already
increased fast food workers minimum wage, but the debate is would it work elsewhere. With the
increase in the demand from fast food workers for a minimum wage increase it has spurred on a
heated debate what the outcome would be with many believing that it would devastate the fast food
workforce with a large increase in workforce reduction enabling the fast food industry to keep it's
ever growing profit margin. However, there are those that would disagree with that assessment. The
problem that is seen is that both sides of this issue forget to take a step back and look at the whole
picture like the smaller group of economists have that understand that there is positive and negatives
to the fast food industry minimum wage increase. Also, with a look at the bigger picture it can be
seen that with the minimum wage increase in fast food jobs is farther reaching than just the fast food
industry. It will unavoidably affect many other industries across the U.S. with a demand for a
nationwide federal minimum wage increase as the fast food industry has laid the ground work for
the "how to" guide for adjusting to a wage

Increasing Minimum Wage
Why the minimum wage should not be increased 211
The minimum wage is a topic which has been heavily discussed amongst the people of the United
Kingdom. Some think it should be lowered, some think it is at the right amount and others think it
should be increased. I was shocked when I found out what the minimum wage was as I thought how
could anyone live on such a little amount. I thought how could anyone afford to pay all of their bills
and everything else on top of that like food and clothes. But then I looked into it more and I realised
that the minimum wage is at that amount for a reason, these reasons are ones which I agree with.
The minimum wage is the same no matter where you live. For example, if you're on the minimum
wage in London

Minimum wage jobs are known as the type of job to have as a teenager. Nowadays, minimum wage
jobs are also common among single mothers and immigrants. Those struggling families need help
from the government because their income is not enough to buy groceries and necessities for their
families. Those people who work at the minimum wage salaries only get a little amount of money
this is a problem for their families. The minimum wage has not kept up with the inflation in the
economy. Increasing the minimum wage to $10.10 will help people in poverty to have a better
income and lifestyle to those who need it.
The minimum wage increase to $10.10 may supply a better income for people with low pay. Low–
income workers do not have enough money to supply ... Show more content on Helpwriting.net ...
In the article,"The Negative Effects of Minimum Wage Laws," embodies the following,"If the
government requires that certain workers be paid higher wages, then businesses make adjustments to
pay for the added costs, such as reducing hiring, cutting employee work hours, reducing benefits,
and charging higher prices."(Wilson). The raise will only benefit some workers. The working
schedules will be changing and hiring rate may decrease depending on the business the low–income
workers are at. At this point, the businesses will only obtain skilled, low–income

Essay on Minimum Wage is The Bare Minimum
Minimum Wage: The Bare Minimum
"They work hard every day; they stock our store shelves, wash dishes at our restaurants, clean our
offices at night, care for our kids during the day...They have in common the minimum wage. And
they need a raise, and as you saw, they deserve a raise" (Clinton). President Clinton made this
speech on the south lawn of the White House at 10:30 a.m. on the 8th of March 2000. He argued for
the minimum wage hike to go into effect. He argued for the population of the United States who
worked at the federal minimum wage. But was his argument feasible? Would it be practical to raise
the federal minimum wage from its current status of $5.15 an hour, to $6.15 an hour?
President Roosevelt instated ... Show more content on Helpwriting.net ...
President Clinton promised to veto the bill just because of the included tax cut. Republicans say the
tax cut was to benefit the businesses being affected by the new minimum wage law. Until the
republicans and the president can reach an agreement over how to pass the minimum wage increase
law, the wage stands at its mere $5.15 an hour (Dateline).
A major problem with raising the minimum wage doesn't even come from our government. Black
teenagers and other minorities have a predicted chance of losing their jobs, along with many other
entry–level workers. They are also prevented from getting many other jobs also because of the
simple supply and demand ratios. When our government raises the minimum wage, they make it
illegal for the employer to pay the employee under a certain, mandated limit. If a job is not worth
the minimum wage and doesn't aid the company to create more of a profit in the long run, then the
worker is forbidden from keeping or getting his job. While the average work–force experienced a
drop in unemployment over the 1996 minimum wage hike from $4.75 an hour to $5.15 an hour, the
percentage of black teenage boys that were unemployed went from 37 to 41 percent (Lehman).
Perhaps the minimum wage law affects more than just average middle–class white teenagers who
work for gas money.
Although most of the

The Wage Is The Minimum Wage
Sammer hassan
Mr. S
English 9
6/5/16
"The minimum wage is the minimum hourly wage an employer can pay an employee for work.
Currently, the federal minimum wage is $7.25 an hour (part of the Fair Labor Standards Act) and
some states and cities have raised their minimum wage even higher than that." minimum wage was
first introduced during the great depression in 1930s. Before it was introduced thousands of people
were forced to work in horrible conditions for pennies a week. Early attempts on minimum wage
was ruled unconstitutional by the U.S supreme court, because it restricted people from deciding
what they wanted to pay their workers. So employers still made there workers, work in horrible
condition through the great depression. Now that poverty is a huge national issue. President Franklin
D. Roosevelt made sure he would protect workers it was part of his mission as the president of the
united states of america. After being reelected in 1936 he signed the FLSA in 1938. Which put into
place a national minimum wage of 25 cents an hour. After the law was passed the minimum wage
was changed almost every couple of years because the cost of living is very high. In 1997 bill
clinton allowed states to make there own minimum wage. Today the minimum wage is 7.25/hour
there is continuing debate over whether that 's a fair amount of money to support someone there
days. Labor activists want the government to raise it while other point out the negative effects it
would have on the

Raising The Minimum Wage
The federal minimum wage began during the Great Depression in 1938 starting at $0.25 an hour. As
of today, Federal minimum wage is $7.25 an hour and it hasn't budged since 2009 when it took
effect. The intent of this paper is to illustrate the reasons behind raising minimum wage and the
downfalls economically of raising minimum wage. Do the positive impacts outweigh the downfalls?
I. Body
A. Minimum wage throughout the years
Twenty–Seven states started increasing their minimum wage since January of 2013. Some states
increased their minimum wage once, while others are taking a multiyear approach. (Hernandez,
2017) Back in 2015, Walmart voluntarily decided to pay their employees more than minimum wage
affecting how other retailers compensate their workers. Reports had suggested that it could be a sign
that the law is out of step with the current employment market. (Krakovsky, 2017)
Let's go back to September of 1997, where minimum wage was only $5.15. Now a day you can't
even buy a container of milk with that. In 2007, Minimum wage increased to $5.85, then in 2008 it
increased to $6.55. But as of July 24, 2009, minimum wage increased to $7.25 an hour and still has
not changed. (Krakovsky, 2017)
(More information about Minimum wage over the years from my literature review)
Statistics
Findings have shown that during January 2013 through January 2015, the employment of high
schoolers, dropouts and young adults expanded 1 percentage point less in states that had one–time or

The Minimum Wage
There have been multiple debates on whether or not the minimum wage should be raised. Minimum
wage can produce an impact on everyday life more than most may think. It is not just about more
money in a person's pocket; it can affect the economy in multiple ways. Many people think it would
be a good idea to raise the average minimum wage, but they do not understand or take the time to
think of the disadvantages. The minimum wage is the least amount a worker can be paid at a job, by
federal law. The present minimum wage is set at seven dollars and 25 cents. The wage can be
determined by votes of the public or the average living cost. Before the Fair Labor Standards Act,
corporations were free to choose any pay rate of their choice. This ... Show more content on
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Another disadvantage to a rise in pay includes the possibility that some people may lose their
government benefits due to their new annual income, such as food stamps or health insurance.
The loss of federal and state aids could produce a greater hardship on people and their families than
the preexisting minimum wage. For those who have already earned a higher pay due to noticeably
hard work or time spent working for a company, the raise of minimum wage would cause the
experienced workers to demand more. If the company is already struggling to pay the difference of
the raised minimum wage, there will be no option but to either refuse the request of an experienced
worker or fire employees. Even though workers have dreamed of a pay raise for years, it has been
concluded that the money will not be coming very soon. It is expected to be a few years until an
increased minimum wage could be developed (Mcgeehan). This does not include all of America due
to larger cities usually having higher wages. Some states have more of a demand due to the different
living conditions and different prices of products. Smaller towns have been known to produce
smaller prices for average products due to supply and demand. This means the ratio of pay to living
expenses averages out. The outcomes aren't all bad. There are also some good

Minimum Wage Negative
Many researchers believe that minimum wage does not always have an inverse relationship on
employment. This report aim is to discuss the negative relationship between minimum wage and
employment. The minimum wage can be defined as an active labor market policy instrument, used
by governments around the world to set a wage floor. It mostly leads to structural unemployment
since minimum wage is sectorial, that is every sector have a different minimum wage from the other
i.e. the minimum wage for taxi drivers is 3,218/month while the minimum wage for domestic
workers is 2,230/month (Wage Indicator, 2016: 1).
Since economics optimality is obtained after a tradeoff, an increase in minimum wage will lead to an
increase in unemployment. This was earlier

According to the Wall Street Journal, "more than one–half of the people earning the minimum wage
are from 16 to 24 years of age." This statistic clearly shows that most of the people in America
making minimum wage are young adult that just got out of high school or college and are trying to
find work experience. Why should a low–skilled young adult with no work experience make as
much as a teacher? They are doing a job that any other low skilled human could do. Jobs making the
minimum wage should not be considered to be a career, they should be a stepping stone towards
your future career. The current federal minimum wage is $7.25 an hour and the state minimum wage
is $8.10 an hour. An increase in the minimum living wage in the United States will ultimately result
in increased unemployment, increased prices for goods and services, and essentially becoming
ineffective at reducing poverty. Increased unemployment is just one of the negative effects of
increasing the minimum wage. When employers are forced to pay it's employees more money every
week it requires them to find ways to pay for these wage increases. One unfortunate way these
employers will will pay for these wage increases is by laying off more employees, and requiring the
employees left to do even more work then before. Most fast food establishments in the United State
are typically already understaffed, which begs us to question what would happen if they have even
less employees? Many people go to fast food

The current minimum wage in the United States is a wage which Americans cannot live and provide
for a family. Americans are forced to live in poor living conditions because of the low wages they
earn. The low wages that workers earn result in poor healthcare because they cannot afford the
proper treatment. The minimum wage leaves little, if any, for any unexpected expenses. The
minimum wage in America affects American workers trying to make ends meet. The minimum wage
needs to be raised and changed to the living wage. The minimum wage in the United States needs to
be raised to a wage which American workers can live. The current minimum wage leaves little room
for everyday expenses. In this paper, I will argue that the minimum wage should be raised to a living
wage. The minimum wage, which Americans earn, creates a financial gap between the employee
and the employer. There is a definite need to raise the minimum wage to lessen the gap between the
employee and the employer. The need to decrease income inequality is the reason why the minimum
wage needs to be raised. The inequality between the employer and the employee is an enormous
problem in the United States. The employer pays the employee a wage that is not livable. The
Americans earning the minimum wage are forced to have themselves and their families live on a
wage that is not livable. The minimum wage in itself is not enough to support a family. The cost of
necessary items to live is going up, while the American

The minimum wage will see a drastic change this January. With minimum wage increasing from
$11.60 to $14.00 in January and plateauing at $15.00 in January of 2019. Student minimum is also
rising to $14.10, and liquor servers will just surpass thirteen dollars at $13.05. This change not only
supports minimum wage workers through an income increase, but Ontario is also hiring 175
employment standard officers. These officers will benefit minimum wage workers by enforcing the
new minimum wage and as well as other labour laws. Critics believe that this increase in minimum
wage does not reach the intended demographic of low–income families and will result in a loss of
jobs and positions. With a substantial change occurring this January, raising the minimum wage to
$14.00, the effects of this raise will begin to ripple throughout Ontario. Although raising the
minimum wage has been critiqued by many economists, it is essential to improving the lives of the
lower class in Ontario.
Firstly, critics believe operating costs will rise substantially during this turnover. Within two years,
according to the Canadian Centre for Economic Analysis, Ontario could see $23–billion in increased
operating costs and 185,000 job losses. Increasing minimum wage does not incentivise new or
current businesses in Ontario to settle in the province due to increasing operating costs. Critics of
the spike of minimum wage argue that the benefits won't reach the targeted demographic. The
Toronto Sun reports

Minimum Wage Advantages
The Benefits of Raising the Minimum Wage Controversy over the minimum wage has been constant
since it was originally instituted. The political parties still move to block the opposing party from
successfully implanting their ideals, causing either nothing to be accomplished or the situation to
worsen. B Solving the problems in our current minimum wage system presents a challenge because
little agreement exists regarding the wage gap between the rich and the poor, allowing the minimum
wage to fulfill its original purpose of protecting workers and keeping the economy in a healthy state,
and .how increasing the minimum wage would allow for more advantages economically with a
minute influence on employment rates. The increasing gap between the upper and lower classes has
been a concern for years, but now receives more attention because it serves as a prime argument for
whether or not to raise the minimum wage. For example, in Nick Hanauer's speech, "Beware,
Fellow Plutocrats, The Pitchforks are Coming," he maintains that based on the current trend of how
the gap is consistently accumulating, the increasing gap could have serious implications, similar to
those of pre–Revolutionary France. "That was France before the Revolution and the mobs with the
pitchforks," explains Hanauer (00:03:50 – 00:04:00). "If we do not do something to fix the glaring
economic inequalities... the pitchforks will come for us," he asserts, "for no free and open society
can long sustain this kind of

Increasing the minimum wage to $10.10 per hour would cost the economy between 500,000 and 1
million jobs and an increase in $15.00 per hour would cost 6 million jobs. In 1938, Congress first
enacted minimum wage that started as $0.25 per hour as a part of FDRś New Deal during the Great
Depression. Today, 21 states have a minimum wage that is higher than the Federal minimum wage.
The federal minimum wage should not be raised because there will be drastic and negative effects
on society.
An increase in minimum wage would hurt businesses. Both large and small businesses would be
affected if an increase was to happen. However, because smaller businesses don't make as much
income or revenue as big businesses, they would be hurt more and could even be forced to close. ¨60
percent of small–business owners say that raising the federal minimum wage will hurt small
business owners (Should the Federal)". Small business owners would have to increase their pay to
their workers, thus giving out more company money. If they are paying their employees more
money than income they are receiving, they will plummet. This could make for employees getting
laid off or fired which would increase unemployment. This would hurt people, which is the opposite
of what an increase in minimum wage would originally be for. For example, big companies such as
Foot Locker or Target would not have any problem dealing with an increase because their revenue is
high. A local family owned sandwich shop would not be

Benefits Of Minimum Wage
Minimum wage is a struggle for many Americans and I believe it needs to be raised. The minimum
wage of the United States is $7.25 an hour. It is a rate that isn't letting many Americans live life
comfortably. If the minimum wage was changed even a merely $3.75 it would change people's lives
and will let many people get by. The minimum wage of $7.25 has stayed the same since 2009 and
there hasn't been any effort by the government to change it. Many states have increased their
minimum wage, but I hope that the minimum wage rises nationwide and not individually as states.
One of the many groups of people that struggle on minimum wage are college students. Many
people avoid going to college because their minimum wage job will not allow them ... Show more
content on Helpwriting.net ...
Another reason why the minimum wage needs to be increased because of single parents or even
families in general. Many single parents or families rely on the minimum wage to live day by day.
Although some may say that living alone with a child doesn't cost much, but I disagree. Having a
child cost a lot of money. These parents often do not raise their children because they must dedicate
their life to working most of the hours of the week and must leave their children in a daycare or in
the home of a close family relative. In between buying necessities for the child and having to raise
them, they have to work long hours of the week because the minimum wage is too low to allow
them to take a break. This is something that effects millions of families in the United States. Gould,
senior economist at EPI tells NBC News, "Even in Tennessee, a state with some of the most
affordable cities in the country, minimum wage workers cannot cover the cost of basic necessities
such as housing, food and other expenses." Families should also have the opportunity to thrive off
the minimum wage. Furthermore people cannot pay the bills and take care of themselves on
minimum wage. Minimum wage often cannot pay adult bills. Although in the past the minimum
wage was way below what is it today, consumer prices have increased a total of 482%. Even college
tuition has gone up 994% in pricing than in 1970, and that's only

Minimum Wage
The concept of minimum wage is to ensure that employers do not pay wages below the mandated
level. However this does not always happen instead this policy ends up hurting these workers and
the economy in terms of lower job opportunities. This is because the increase of labor costs keeping
all other things constant would eat into the net profits of the company. Therefore in order to offset
the decrease in profits, the need for low skilled labor decreases and companies look for higher
productivity workers.
The groups that are directly affected by the minimum wage consists of young workers or teenagers,
part–time workers and workers from non–poor families.
According to the Bureau of Labor Statistics, 1.8 million paid–hourly employees were ... Show more
However this concept is not widely used due to low presence of lower– wage firms in comparison to
the large labor forces of an economy. Reference 11 Author 's analysis of the Bureau of Labor
Statistic 's Current Population Survey data for March 2010.
http://www.downsizinggovernment.org/labor/negative–effects–minimum–wage–laws#top Question
3: Impacts of an Appreciating Currency
In the case of appreciation of the yen, the following impacts could occur to Japanese firms * The
first effect would be on the negative effect of exports and as a result would cause the firms to
become less competitive based on price. * Another effect would be as a result of the exchange rate
fluctuations. Certain firms might not be protected to negative fluctuations as a result of dealing with
yen as their primary mode of currency. This therefore can eat into the profitability of the Japanese
firms and cause multinationals to shift overseas to a more stable country.
Therefore in short, the reduction in exports due to an increase in the value of yen is because the
Japanese goods have now become more expensive to other countries. Therefore this reduction
directly affects the firms that deal with these exports and thus affects their profitability.
However , in spite of the decrease in exports , Japanese firms now have the ability to expand
overseas

Minimum Wage
The issue of minimum wage and whether it should increase or not continues to be a hot topic among
people. With today's economy, families struggle to make ends meet due to their low income, while
others argue that a minimum wage increase will do more harm than good. Others also argue that the
minimum wage should in fact be the living wage (Huffington Post, 2016). As defined by The
Balance (2017), a living wage is "the amount of income needed to provide a decent standard of
living." According to the map on the living wage calculator, which basically measures the
"difference between minimum wage and basic costs of living in cities and counties in America," not
a single county has a minimum wage that matches the cost of living. People ... Show more content
on Helpwriting.net ...
It is just as difficult, if not even more, for those who are a single parent and has a child. It is visible
that in just about every state, the living wage is higher than the minimum wage. However, there may
be a few states where the cost of living is lower than the minimum wage such as in Pend Oreille
County. Even so, the extra money that they do make is only 65 cents more (City Lab, 2015). A
minimum wage increase is not only needed so people can make ends meet, but by doing so, it will
increase productivity and customer service. Raising the minimum wage increases the productivity
and customer service in a business (Time, 2017). For example, a business named "&pizza" pays
their employees a starting wage that is higher than minimum wage (Time, 2017). Michael Lastoria,
the CEO of the business states that "It's a simple, but critical, concept: take care of your people and
they will take care of your customers." I agree with this statement. When a business or anyone for
that matters show that they appreciate your work, it only makes one want to work harder and
provide the best kind of service. Everyone benefits in this situation. There are many other businesses
as well that have acted to increase the work wage above the required minimum. While it may be fair
or ideal to get a minimum wage increase which would also increase productivity and customer
service, others would argue that it would do more damage than

Minimum Wage
Minimum wage is a controversial topic because everybody wants more. People want more money
and some think that just increasing minimum wage can increase more money that they get.
However, this is far from the truth as sometimes employers can't pay their employers more than
minimum wage. Not to mention that if the minimum wage goes up so does the price of everything
else in order to adjust for the new price. So essentially increasing the wage majorly does nothing
except maybe lower the value of your money since more money would be required for everybody
and more money to go around gives it less value. Don't get started and think "well if increasing it
majorly does nothing what about a small increase" because that'll just ruining the ... Show more
So according to the Contemporary Economic Policy, lowering the minimum wage would increase
the GDP of the united states by 1–2% which is enough to make a change in today's prices. A higher
GDP is important for other reasons as well as it's always been a sign of huge economic growth
ahead. For example, back in 1945 the united states had a massive GDP thanks to war production of
world war II. five years later during the 1950s, america had a prosperous life. A single stable job
supported a whole family. Another benefit to lower minimum wage is towards tipped workers like
waiters. The Journal of Labor Research says in their article "The Minimum Wage and Tipped
Workers" that as the minimum wage increases income and employment for tipped workers decrease
and the raising the minimum wage would do the opposite. Their explanation on how tipped workers
would lose income is well said "work–ers earn no tips so these restaurants pay employees $5 an
hour. But at full–service restaurants, servers may earn $4 an hour in tips. The minimum wage law
requires these restaurants to pay $2.13 an hour, so the workers earn $6.13 an hour with tips. If the
minimum wage is increased to $5.00 an hour, fast–food restaurants are unaffected and still pay $5 an
hour. But the full–service restaurant's rises from $2.13 an hour to $2.50 an hour (50 percent of $5 is
offset with tipped income). As this example sug– gests, restaurants with the better–paying (tipped)
jobs

The Minimum Wage
To begin with, I would like to describe what the minimum wage is. The minimum wage is the
lowest wage that companies can pay employees. It should provide enough income for employees to
have the amount which will be sufficient to guarantee the subsistence minimum. This theme is
widely discussed around the world. Many countries have a type of minimum wage. Most of them
regulate it yearly, depending on the cost of living. Speaking about the minimum wage in the USA, it
is lower than in most other world's countries, although the cost of living is higher. Nowadays the
minimum federal wage in the USA is 7, 25 and it can vary by state or by employee position. Despite
of this fact, some individual states can make their own laws on this. The minimum wage laws
should prohibit employers from manipulating workers.
History
To understand the topic more accurately, let's go deeper into the history of the minimum wage.
"Minimum wage in America isn't as old as you might think: the first federal minimum wage was
first introduced by Franklin Delano Roosevelt in 1938. Minimum wage was set at 25 cents an hour,
which works out to about $4 per hour in today's money.
That minimum wage was introduced as part of the Fair Labor Standards Act (FLSA). The FLSA
also covers things like youth employment standards, overtime pay, recordkeeping, and standards for
government employees at the local, state, and federal levels."(Bebusinessed, 2016, para.7).
The Depression covered all segments of the population

Minimum Benefits Of Minimum Wage
Minimum wage is described as "the minimum amount of remuneration that an employer is required
to pay wage earners for the work/services performed during a given tenure, which cannot be reduced
by collective agreement or an individual contract". Minimum wage can be established by statute,
competent decision authority, a wage board, a wage council, or by industrial or labour courts.
The significance of minimum wage is to shield workers against disproportionately low pay. They
help safeguard an equitable and just share of the fruits of progress to all, and a minimum living
wage to all who are employed and in need of such protection. Minimum wage can also be a part of a
policy to overcome poverty and reduce inequality, including those between ... Show more content on
Helpwriting.net ...
This potential loss decreases both firms' surplus and workers' surplus. The increase in job search will
waste resources and time which contributes to the inefficiency of minimum wage.
Dead–weight loss highlights the loss in possible employment, which could have been achieved by
labour market approaching equilibrium.
In both cases of minimum wage, there is an overall increase in labour supply and an overall
reduction in demand of labour. Hence, implementing or increasing minimum wage results in loss of
jobs theoretically. However, it also relies on the country 's economic activity which may or may not
result in loss of jobs. Additionally, case 2 reflects the scenario wherein the government delivers
unemployment benefits to its unemployed citizens. In this case the dead–weight loss is catered by
the government which in return puts a great deal of financial burden on the government.
Evaluating the Pros & Cons of different essential elements associated with Minimum Wage:
Pros:
General population
– Improved minimum living standards – It facilitates the lowest paid strata of the society to desire
for a better standard of living.
– Incentive to work – It encourages unemployed population to find job, due of higher returns for
their labour.
Government
– Decreases poverty – It increases the income of the lowest paid in the society and avails them to
increase their income level.
– Reduces Income inequality – It aids in better distribution of income by compelling businesses to

Minimum Wage
The standard minimum wage level has been a controversy over its insufficient wages set for
working class Americans. The minimum wage was established to protect unskilled workers from
being exploited by employers' low pay. Introducing the minimum wage provided stabilization in the
workplace, but as the cost of living increases, working Americans are demanding a livable wage. In
the recent past, the American dream fadedness changed the way Americans view the economy. For
many wageworkers, the American dream is becoming less of a possibility as corporations minimize
the chances for the poor working class to obtain the dream. However, raising the federal minimum
wage will likely result in higher prices for the middle and lower classes because ... Show more
Raising the minimum wage raises worries on the middle class about their development in the future
economy, while economists and small businesses are also concerned. Advocates promoting a raise to
the minimum wage are reducing attainable opportunities for small and new businesses to develop.
Business owners concentrate on the outcome of raising the minimum wage instead of the effect on
working people. In "measuring the full impact of Minimum and Living Wage Laws," Wicks–Lim
urges wage workers that increasing the federal wage will have costly consequences on the economy.
The minimum wage will force large ripple effects to take place as prices rise to cover the new wage.
Moreover, "the increase in the federal minimum wage from $5.15 to $7.25 per hour will contribute
to a higher unemployment rate." (Dorn) The business community warns that ripple effects will
eventually take place if the federal wage is increased, aiming at small business owners to close or
lay off low–wage workers. Raising the cost of products will drive away customers and end the
shopping experience by shopping online rather than paying for the services in the stores. Small
businesses are already laying off low–skilled workers and investing in self–service tablets, robotics,
and other labor saving devices in anticipation of a lower minimum wage.
The American Dream reality

Effects of Raising Minimum Wage

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