Arguments For and Against Minimum Wage within the US

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25 December 2021

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Patrick Tawadros, Corinne Dexter, Mark Hanna, Yuanwen Dong

Mediated Speech Outline – Minimum Wage


I. Introduction

  1. In this country, regardless of views and opinions, the controversial topic of minimal wage has resounding effects on staff, businesses, and customers alike.
  2. We will attempt to parse out the gory details by debating the professionals and cons of: growing the minimal wage.
  3. We have done in depth research, in addition to worked our fair share of minimum wage jobs giving us the ability to speak confidently on matters associated to minimum wage.

  4. It’s likely most of you may have minimum wage jobs supplying you with something to relate. If you don’t work for minimal wage you’re most likely nonetheless a client and thus both by way of wage will increase or value will increase the outcomes of this debate will have an impact in your life.
  5. There are robust arguments each for and in opposition to elevating the minimum wage including
    1. The potential to enhance health, teachers, and scale back crime rates.
    2. The potential to lead to a spike in unemployment
    3. The potential to minimize back poverty levels
    4. And finally the potential to lower demand

How might just some dollars do all this? Well let’s begin with the primary: health lecturers and crime.

II. Body

  1. Pro Argument 1 (PATRICK TAWADROS): Increasing the minimum wage would have optimistic well being results, enhance lecturers within the total sense, and cut back crime rates.
    1. Increasing minimum wage sustains a wholesome inhabitants and lowers mortality.
      1. In a study carried out by Rajiv Bhatia, MD, on the California minimum wage, it was discovered that the next minimal wage would finally allow staff to have enough to eat, be extra prone to train, and even stop premature deaths (Bhatia).

      2. In another examine conducted by Barhii, he “concluded that insurance policies that reduce poverty and raise wages of low-income folks may be anticipated to considerably enhance general well being and reduce well being inequities” (Barhii).
    2. To add to the added well being advantages, increasing minimum wage would enhance college attendance, while simultaneously reducing high school dropout charges.
      1. Teens dwelling in poverty are twice as prone to miss three or extra days of faculty per thirty days when in comparability with teens who don’t live in poverty (Bhatia).
    3. A higher minimum wage would scale back crime.
      1. In a research carried out by the Executive Office of the President’s Council of Economic Advisors, it was discovered that by raising minimum wage to $12 by the year 2020 that there would be a three to five p.c crime decrease. This is primarily because of the reality that larger wages provide viable and sustainable employment. (Executive Office of the President)
      2. In one other study performed at the University of Virginia, it was discovered that an increase in wages is related to a reduction in property-related crimes. (Fernandez)
  2. Response to pro argument (con) (YUANWEN): At first look, the increasing of minimal wage would permit individuals of lower incomes to live a better life. But growing minimal wages adds many potential threats to the equilibrium of the free market. The net impact of this interference is not necessarily good. To specify, growing minimum wage will trigger higher unemployment price, and has no significant links to lowering the crimes..
    1. There is few proof to show that there is a hyperlink between the increasing of minimal wages and decreasing of crime rates. According to a study conducted by Boston College in 2013, “‘crime will enhance by 1.9 percentage points amongst 14-30 year-olds because the minimal wage increases.’” (Fuller).
    2. Due to the upper unemployment price brought on by the growing of minimum wage, a variety of the subsequent technology won’t be able to afford the education. In 2009, a examine by the American Journal of Economics and Sociology found that in Maryland, “a 25-percent improve in the true minimum wage was related to a 0.55 % improve in the dropout rate for Hispanic college students.” (Crofton, Anderson, and Rawe).
  3. Con argument (YUANWEN): On the contrary, increasing the minimal wage would drive business to lay off more employees to save tons of budgets and raise the unemployment rates.
    1. Sub point 1: Increasing minimum wage will elevate the value of companies, lower their employment ranges, and cause larger unemployment rate.
      1. Raising minimal wage will increase the price of businesses, forcing businesses to put off extra employees. The Congressional Budget Office predicted a $7.25 to $10.10 minimum wage increase could potentially cost 500,000 jobs. (Congressional Budget Office).
      2. Increasing minimum wages will decrease the willingness of companies to hire more employers, because of the rise of the fee. There was a survey conducted of 1,213 businesses and human assets professionals and 38% of the employers who payed minimal wage mentioned they would resort to letting go some employees if it was raised to $10.10. Among them 54% said they might decrease hiring levels (Kast).
      3. Statistically, comparing to countries that wouldn’t have minimal wage coverage, countries with minimal wage policy have higher rate of unemployment. In 2014, Steve H. Hanke, Professor of Applied Economics at Johns Hopkins University, conducted a survey of the 21 European Union international locations that had a minimal wage and discovered that they had a median unemployment price of about eleven.8%, which was a 3rd greater than the 7.9% common within the remaining EU international locations with no minimum wage (Hanke).
    2. Sub level 2: Increasing minimum wage will put lower-skilled worker at a disadvantage, since the rise of wage exposes those lower-skilled to the identical competitors with those extra skilled.
      1. Raising minimal wage will put lower-skilled workers at disadvantages. From an employer’s point of view, folks of decrease skills don’t justify the rise of minimal wages, however they have no selection however to hitch the competition with the more expert, if minimal wages are elevated. James Dorn acknowledged that a minimum wage improve by 10% “leads to a 1-3% lower in employment of low-skilled workers” within the quick time period, and “to a larger lower within the long run” (Dorn).
      2. Increasing minimal wages places lower-skilled staff at a disadvantages by forcing them to be exposed to the same competition with people who find themselves extra expert. George Reisman acknowledged that if the minimum wage was increased to $10.10, “‘jobs that presently pay $7.25 had to pay $10.10, than employees who previously would not have considered those jobs due to their capacity to earn $8, $9, or $10 per hour, will now contemplate them. The effect is to reveal the employees whose skills do not exceed a degree similar to $7.25 per hour to the competitors of better educated, more skilled workers presently in a place to earn wage rates ranging from just above $7.25 to just beneath $10.10.’” (Reisman).
  4. Response to con argument (CORINNE): Despite the claim of an increase in unemployment, research on past minimal wage hikes have shown little effect on unemployment in each federal mandated and state mandated hikes.
    1. Sub level 1: A case study of the quick food business which compared two states, New Jersey and Pennsylvania after New Jersey elevated the minimum wage, and Pennsylvania did not, showed that there is “‘no proof that the rise in New Jersey’s minimal wage lowered employment at fast-food restaurants in the state’” (Card, Krueger). The department of labor statistics additional contends that in 65 years of federal minimum wage hikes, unemployment rates prior to now have generally gone down, or stayed the identical after will increase within the minimum wage with just one exception in the 70’s and that unemployment spike is linked to different causes such as recession and an power crisis (Real Minimum Wage…). History shows that it secure to assume that if anything a higher minimum wage will put extra money in people’s pockets for use for discretionary spending which is ready to stimulate the market or hold it the identical, but not improve unemployment.
  1. Pro argument (CORINNE): What, hoever, minimum wage increases always do, is reduce poverty and in turn cut back authorities spending.
    1. Sub point 1: Currently, the minimal wage just isn’t sufficient to stay on. The economic coverage institute using authorities sources discovered that the average price of dwelling in the united states, excluding discretionary spending is roughly $50,000 greater than what a minimum-wage employee earns (Cooper). As a result many people are either barely making it by, or are under the poverty line entirely and counting on authorities help to take action. In the 2014 Congressional Budget Office report, it showed that growing the minimal wage to $9 would lift 300,000 folks out of poverty, whereas raising it to $10.10 would bring 900,000 folks out of poverty (Congressional Budget Office). Accounting for inflation minimum wage should really be even higher at $10.fifty two or more depending on where somebody lives implying that poverty charges might shrink even decrease with a extra aggressive elevate (Cooper).
    2. Sub point 2: By helping families survive off the the diligent work that they do we are additionally serving to the taxpayer burden. It was reported in 2014 by The Center for American Progress that by raising the minimal wage to $10.10, SNAP spending would decline by $4.6 billion (West, Reich). Likewise The Economic Policy Institute came upon that by making the minimal wage to be $10.10, a minimum of 1.7 million Americans would not rely upon government help applications (Cooper). The wage increase would save $7.6 billion on annual government spending for income-support applications (Cooper). This money could both go back into the pockets of the everyday particular person or be used for different helpful applications.
  1. Response to pro argument (MARK HANNA): Unfortunately a lower in authorities spending for revenue support packages may result in unintended adverse sideeffects down the road for the poor and unemployed.
    1. People who’ve then been laid off would suffer from reductions in advantages due to congressional budget cuts to programs such as the supplemental vitamin help program (SNAP, previously called food stamps), short-term assistance for needy families (TANF), the Earned Income Tax Credit (EITC), child-care subsidies, housing vouchers, and Women, Infants, and Children (WIC) because of the profit charges fading as earnings rises (Sherk, 2013). Those people nonetheless employed would have the power to afford extra so the necessity for these packages would diminish and as extra people will have to use these defunded applications as unemployment will increase, poverty will rise because the price range won’t be able to help them (Sherk, 2013).
    2. The standard of living will also increase as minimal wage will increase. In a examine conducted by Purdue University’s School of Hospitality and Tourism Management, they discovered that growing wages to $22 an hour raises client costs by 25% (McClure, 2015).
  2. Con argument (MARK HANNA): Thus, raising the minimal wage would really decrease demand for market growth and merchandise because of greater prices, leading to negative long run outcomes for families and the financial system.
    1. Studies show that if the minimal wage was to increase from $7.25 an hour to $10.10 an hour, the demand for workers would decrease and many individuals would get laid off. Meanwhile, those who weren’t laid off pay 15% extra on payroll and earnings taxes for each extra dollar that’s added to the minimum wage (Sherk, 2013). This decrease in demand may have unavoidable negative consequences for unskilled staff and their households in the long run within the type of much less opportunity for employment and ability acquisition. Chaplin, Mark, and Andreas (2003) found by way of a study they performed that rising the minimal wage would “lower the continuation price for grades 9-12 in states with dropout ages beneath 18.”
    2. Raising the minimum wage will trigger demand to fall for what James and Mary Kau (1973) name “industrial incentive,” which is described as the inducement for trade to progress itself ahead. This fall in incentive was documented in a research carried out by Van Sickle (1946), where he discovered that the south was booming with industrialization for a couple of a long time then plummeted after the Fair Labor Standards Act was passed. The rising prices created by low demand for work would also impede competitors, as the worth of manufacturing of goods from the south to the north would improve (Kau & Kau, 1973).
  3. Response to con argument (PATRICK TAWADROS): Long term effects of the minimum wage being increased do not have an result on instructional alternatives for teen workers and don’t hurt demand for client items.
    1. In an journal article by Warren and Hamrock (2010), they describe how the consequences of a minimal wage increase wouldn’t impact teen staff who weren’t already doing poorly academically as others say it could. They claim it would solely impression those who would have had “a historical past of failure; who usually are not engaged in significant extracurricular, social or athletic actions in class; and, perhaps most importantly, who’re able to meaningfully improve their ranges of labor market participation” (Warren & Hamrock, 2010). They proceed to state that if the elevate would impact a sure academic subset, it would be these college students who’re competing with adults for jobs and/or who would be dropouts both method (Warren & Hamrock, 2010).
    2. Minimum wage will increase do not influence market development as innovation has all the time been outrunning minimal wage will increase. This is proven in an article published by The Economist (2015), stating that in most developed nations minimum wages rise with revenue ranges, however in America that’s not the case, as one would suppose that in a country with a GDP of $53,000 per particular person, the minimum wage should be at least $12 an hour, but it is not. Therefore, as a outcome of it has not stored up with revenue rises, it cannot be safely mentioned that elevating the minimum wage kills innovation.

Thus far, what have we discovered from our discussion? Let’s recap.

III. Conclusion:

  1. Ultimately, growing minimal wage might reduce poverty, therefore, bettering well being, educational efficiency, and lowering crime charges. However, then again, increasing minimal wage could stress enterprise to lay off employees and could lower demand for labor and merchandise.
  2. Regardless of perspective, the controversial and divisive matter of minimum wage is a far reaching concern in the United States of America and so you will need to weigh all sides equally to return to a balanced conclusion.

Works Cited

Patrick’s Pro Argument Sources

  • Executive Office of the President, Council of Economic Advisors, “Economic Perspectives on Incarceration and the Criminal Justice System,” whitehouse.gov, Apr. 2016
  • Fernandez, J., Holman, T., & Pepper, J. V. (2014). The Impact of Living‐Wage Ordinances on Urban Crime. Industrial Relations: A Journal of Economy and Society, 53(3), 478-500.
  • Rajiv Bhatia, “Health Impacts of Raising California’s Minimum Wage,” Human Impact Partners web site, May 2014
  • Bay Area Regional Health Inequities Initiative (BARHII) “The Minimum Wage and Health: A Bay Area Analysis,” barhii.org, Oct. 2014
  • Warren, J., & Hamrock, C. (2010). The Effect of Minimum Wage Rates on High School Completion. Social Forces, 88(3), 1379-1392. Retrieved from http://www.jstor.org.proxy.libraries.rutgers.edu/stable/40645895
  • The Economist. (2015, May 20). Pay dust. Retrieved from http://www.economist.com/blogs/graphicdetail/2015/05/minimum-wages

Corinne’s Pro Sources:

  • Card, D., & Krueger, A. B. (2000). Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Reply. American Economic

Review,90(5), 1397-1420. doi:10.1257/aer.ninety.5.1397

  • Cooper, David. Raising the Federal Minimum Wage to $10.10 Would Save Safety Net Programs Billions and Help Ensure Businesses Are Doing Their Fair Share. Issue temporary no. 387. New York: Economic Policy Institute, 2014. Print.
  • Real Minimum Wage Rate vs Unemployment Rates January 1950 to January 2013 [Chart].

(2013.). In Bureau of Labor Statistics .

  • Reich, Michael, and Rachel West. “The Effects of Minimum Wages on Food Stamp Enrollment and Expenditures.” Industrial Relations: A Journal of Economy and Society fifty four.4 (2015): 668-94. Web.
  • The Effects of Minimum-Wage Increase on Employment and Family Income. Rep. no. 4856. N.p.: Congressional Budget Office, 2014. Print.

Yuanwen’s Con Sources:

  • Congressional Budget Office, “The Effects of Minimum-Wage Increase on Employment and Family Income,” cbo.gov, Feb. 2014
  • Kast, S., “New Express Employment Professionals Survey of Employers Shows 38% of Those Who Pay Minimum Wage Will Lay Off Workers If Wage Is Hiked,” prweb.com, Mar. 19, 2014
  • Hanke, S.H., “Let the Data Speak: The Truth Behind Minimum Wage Laws,” Cato Institute website, Apr. 2014
  • Dorn, J., “The Minimum Wage Delusion, and the Death of Common Sense,” Forbes, May 7, 2013
  • Reisman, G., “How Minimum Wage Laws Increase Poverty”, Mises Institute website, Apr. four, 2014
  • Crofton, S.O., Anderson, W.L., & Rawe, E.C., “Do Higher Real Minimum Wages Lead to More High School Dropouts? Evidence from Maryland throughout Races, 1993-2004,” American Journal of Economics and Sociology, Apr. 2009
  • Fuller, D., “Multilevel Study Finds No Link Between Minimum Wage and Crime Rates,” uc.edu, Nov 18, 2013

Mark’s Con Sources

  • Sherk, J. (2013, June 25). What is Minimum Wage: Its History and Effects on the Economy. Retrieved from http://www2.heritage.org/research/testimony/2013/06/what-is-minimum-wage-its-history-and-effects-on-the-economy
  • Chaplin, D. D., Turner, M. D., & Pape, A. D. (2003). Minimum wages and school enrollment of youngsters: a take a glance at the 1990’s. Economics of Education Review, 22(1), 11-21.
  • Van Sickle, John, “Geographical Aspects of a Minimum Wage,” Harvard Business Review, XXIV (Spring 1946), 288.
  • Kau, J., & Mary L. Kau. (1973). Social Policy Implications of the Minimum Wage Law. Policy Sciences, 4(1), 21-27. Retrieved from http://www.jstor.org.proxy.libraries.rutgers.edu/stable/4531512
  • McClure, G. (2015, July 27). Study: Raising wages to $15 an hour for limited-service restaurant employees would increase prices four.3 percent. Retrieved from http://www.purdue.edu/newsroom/releases/2015/Q3/study-raising-wages-to-15-an-hour-for-limited-service-restaurant-employees-would-raise-prices-4.3-percent.html
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StudyScroll. (2021). Arguments For and Against Minimum Wage within the US [Online]. Available at: https://studyscroll.com/arguments-for-and-against-minimum-wage-within-the-us-essay [Accessed: 19 August, 2022]

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"Arguments For and Against Minimum Wage within the US" StudyScroll, 25-Dec-2021. [Online]. Available: https://studyscroll.com/arguments-for-and-against-minimum-wage-within-the-us-essay. [Accessed: 19-Aug-2022]

StudyScroll. (2021). Arguments For and Against Minimum Wage within the US. [Online]. Available at: https://studyscroll.com/arguments-for-and-against-minimum-wage-within-the-us-essay [Accessed: 19-Aug-2022]

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