Positive effects of raising the minimum wage to fifteen dollars in 2016 are that it boosts the economy, and creates a positive GDP. By increasing the minimum wage to fifteen dollars an hour, which is double what the minimum wage is today, you are increasing consumer spending which increases GDP. Studies have shown that low-waged workers put every dollar they earn plus more back into the local economy when they were given a raise. Workers strived to work harder as their wages were raised. By raising minimum wage, it increases workers’ income, which gives an economic boost.
Almost all articles, for or against the raise, agree that as long as the poverty line is not adjusted, then state and federal services that low-income workers were previously using would decrease. This means that the money that is no longer being distributed in food stamps or other services can be returned to Washington, D.C. and be redistributed. Economists say that raising the Federal minimum wage to $9 will restore the dollar to its real value (The President’s Plan). And indexing the minimum wage would ensure that working families keep up with inflation.
Miniumum wage workers are able to worry less and stress less. Increasing the minimum wage would mean more money per hour. Furthermore, household families are more likely to spend more money. This could help stimulate the economy, creating more jobs for individuals. In fact, a recent study by the Federal Reserve Bank of Chicago concluded that, following an increase in the minimum wage, spending by households with at least one minimum-wage worker increased by $700 per quarter (Shemkus).
It would make the united states a better place it would reduce crime and poverty the lives of many would change children would have a chance at education and wouldn’t be put at risk of doing bad things cause their parents don’t have enough money to put them through school and things like employees not always wanting to look for a better job would be eliminated the whole idea of America becoming a better place would become achieved. It all just starts with the raising of minimum wage and its just a domino effect once the parents have enough money to pay the bill and put some aside the kids live happy and once the kids are happy the employee/ the parent is happy and once that happens the employee become more productive and when the employees are more productive the business becomes more successful and when the business becomes more successful and expands they are going to need more employees and when they need more employees there are more jobs so in the end raising the minimum wage would make the United states a better place better as a
Minimum wage would raise the wages of many workers and increment benefits what disadvantaged workers. An estimated 6.9 million workers would receive an incrementation in their hourly wage if the minimum rage were raised to $10.15 by 2015. Due to the spill over effect the 10.5 million workers earning up to a dollar above minimum wage would withal be liable to benefit from an incrementation. Women are the most astronomically immense group of beneficiaries from a minimum wage increase. Sixty percent of workers who would benefit from an incrementation are women.
Increasing the minimum wage only does positive growth because “...authors found little or no evidence of a negative association between minimum wages or employment”. ("How Does a Federal minimum Wage Hike Affect Aggregate Household Spending?”) Increasing the minimum wage will only cause positive growth in a topic of employment. Raising the
It has been nearly 14 years since the last increase in the federal minimum wage. To begin with, raising the minimum wage to match inflation and productivity would benefit the economy by increasing consumer activity and stimulating job growth while lowering the federal deficit. A journalist summarizes, “The federal
At this point the benefits seem significantly more important than the costs. Sure the costs cannot be ignored but in the long run the increase in wage can improve people’s lives outweighing the costs that exist. Some of the important benefits from increasing the minimum wage would be giving a better salary to the people who depend on that money to provide and support their families. In today’s current situation the minimum wage has people living in poverty because what they earn is not enough to support them. By raising the minimum wage people can get themselves above the poverty line as “A more recent
An increase on minimum wage will hurt the economy and low-wage workers. Although the minimum wage is believed to bring many families out of poverty, according to the CBO, if the minimum wage rises, as much a s one million jobs will no longer be available to people. CBO uses a television ad to illustrate why an increase on minimum wage would not benefit the poor. In the ad, a waiter is replaced by an iPad.
If America raises the minimum wage to $9.00, it will help people in need or in poverty, but it also won’t hurt people in the workforce. If you increase the minimum wage to $15.00 it will make unemployment rates go high up. Which in the process, makes the homelessness rates go up in the country and in your community. If you keep the minimum wage at $7.25 people will stay in poverty and homeless or on the verge of homelessness.
If companies raised their wages they would see some form of an increase in productivity. When pay was increased for a study that researched how pay affected work efforts it was found that with a higher wage “Employees work harder per hour,” (Nicol Persico). A higher minimum wage could also motivate unemployed people to work harder at getting a job. There are many people in the U.S. who don’t believes it is worth it to get a job and would rather try to live off of unemployment or other government support. Higher pay would make it more incentivizing to get a job which could help boost the economy.
This would make it where people wouldn 't have to live paycheck to paycheck. Raising the wage slightly would also make it so the price of goods wouldn 't have to be raised. The Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period. This raise increase would be easy to implement and would help the economy. By implementing this new minimum wage many problems in America can be solved.
In conclusion, a federal minimum wage increase will significantly improve the standard of living of low-wage workers. To meet their basic needs, workers must be given a living wage. It is not only morally correct to do so, but also beneficiary to both ends. The increase in wages allows for a more supportable income, but it also stimulates the economy.
There are a lot of potential benefits for an increase in minimum wage and on the surface it’s hard to see why you wouldn’t want to increase the wage. One of the clearest to see is that an increase to the minimum wage will also increase the spending for each household during the following years. So it works to help stimulate the economy in whatever area you increase the minimum wage. Along those same lines increasing the minimum wage will lead to a decrease in poverty as well. With the decrease in poverty you will also see a decrease in government spending on welfare items because the individuals receiving the higher wage in theory will be able to pay for these services/welfare items without assistance.
Many argue that an increase in minimum wage will help guide low skilled workers out of poverty and assist them into having a better career. That is not necessarily true, Many economists can agree that minimum wage jobs such as cashiers, host or a hostess are not jobs that meant to support a family. If anything by raising the minimum wage, it will put more people in poverty than guide them out of poverty. A raise in minimum wage will cause loss of jobs, an increase in the inflation rate, increase in
For example, some people steal things due to them not being able to afford them, increasing the minimum wage will cause them to make more money, and won 't be in need of stealing, or committing other crimes. A 2013 study found that living wage ordinances "lead to modest reductions in expected robbery, burglary, larceny, and MVT [motor vehicle theft] rates. " There 's occasions when people murder in order to obtain something from them, and some people commit robberies because they need that money the increase of the minimum wage can change that. Researchers found that there is a ¨10 percent increase in the real minimum wage results in a 6.3 to 6.9 percent decrease in murders and 3.4 to 3.4 percent decrease in robberies.¨ According to a study made in 2016 by the Executive Office of the President 's Council of Economic Advisors said ¨reduce crime by providing viable and sustainable employment… raising the minimum wage to $12 by 2020 would result in a 3 to 5 percent crime decrease (