Tuesday, May 2, 2017

Should We Increase Minimum Wage?

Jess Fonte
Should We Increase Minimum Wage?
Most people who have a job would gladly accept an increase in their hourly wage; specifically people who are only making minimum wage. Although this increase in wage sounds ideal for the employees, it might not be as ideal for people that typically buy goods and services from the business, as well as the business itself. In the end however, an increase in minimum wage will bring forward more benefits than it does negatives, therefore it should be increased.
Above is a graph that shows the correlation between restaurants’ average star rating and how likely they are to close down. It also shows restaurants that pay their workers minimum wage, and restaurants that pay 20% more than minimum wage. This graph shows that at any given star rating, restaurants that pay minimum wage are less likely to close than those who pay more. Although this may seem like a bad thing, it brings many positives as well. Since restuarants with high ratings aren’t the ones that are closing, this increase in restaurants shutting down would cause the overall quality of restaurants to increase. The reason why higher paid employees’ establishments are more likely to close is due to the fact that the demand for these restaurants are relatively elastic since they tend to cater towards less wealthy individuals. Since in increase in wages would also increase the price, it would cause an overall decrease in demand. This then causes the consumers to think of other alternatives instead of eating out such as cooking at home.
Another benefit from the increase in minimum wage would be less reliance on government aid such as food stamps, medicaid, and energy subsidies. Since the relative minimum wage is not high enough due to inflation, many people rely on government aid in order to scrape by. Using the Bureau of Labor Statistics longest-running measure of inflation, the minimum wage should be $10.95 today. Since it is well below this, it demonstrates how people making this hourly wage are struggling to survive in today’s economy. If the minimum wage were to increase, they could provide more for themselves, and become less reliant on government aid. This is a benefit for our economy, therefore helping to prove the point that minimum wage should be raised.
In conclusion, an increase in minimum wage will improve the overall quality of restaurants as lower quality restaurants will be forced to close down due to the inability to maintain customers with an increase in menu prices. Along with this, it will provides individuals with better living opportunities, as even if they are laid off from their job, it is not structural unemployment, so they will be able to find work otherwise.

"Higher minimum wages may make bad restaurants close." The Economist. The Economist Newspaper, 29 Apr. 2017. Web. 01 May 2017.
"The impact of raising the federal minimum wage to $12 by 2020 on workers, businesses, and the economy: Testimony before the U.S. House Committee on Education and the Workforce Member Forum." Economic Policy Institute. N.p., n.d. Web. 01 May 2017.

14 comments:

  1. The debate of minimum wage is ongoing and ever present no matter what the wage is or how long ago it was increased. Many people only see the upside to increasing the wage because they are too busy spending the extra they now have. However, the downsides are often overlooked such as increasing prices, limited job opportunities, etc.

    ReplyDelete
    Replies
    1. Testimony of financial breakthrough from GOD through the help of Funding Circle Loan INC. (fundingloanplc@yahoo.com OR Call/Text +14067326622)...

      Hi I'am Evelyn Russell resident at 808 NE 19th St Oklahoma City, I am a single mother blessed with 2 daughters. For a while now I have been searching for a genuine loan lender who could help me with a loan as I no longer have a job, all I got were hoodlums who made me trust them and at the end they took my money without giving me any loan, my hope was lost, I got confused and frustrated, it became difficult for my family to feed with a good meal, I never wanted to have anything to do with any loan lending companies on the internet again. Not until I met a Godsent loan lender that changed my life and that of my family Through the help of a fellowship member "a lender with the fear of God in him Mr JASON RAYMOND, he was the man God sent to elevate my family from suffering. At first I thought it wasn’t going to be possible due to my previous experience until I received my loan worth $135,000.00 USD in less then 24hours. So my advise to anyone out there genuinely in need of a loan is to contact Funding Circle Loan INC through this official email:- fundingloanplc@yahoo.com OR Call/Text +14067326622 and be financial lifted.


      Delete
  2. I agree that the minimum wage should be increased. In addition to the benefits you mentioned, the additional spending would be a boon to the economy as spending power increases. This additional spending creates jobs and opportunities for others that largely cancel out any losses in employment due to the increase in the wage.

    ReplyDelete
  3. I agree that minimum wage should be raised. The current wage rates are not enough for people to live on these days, and in order to reverse any of the negative tends that we see in our society involving poverty it starts here. Raising the minimum wage would allow less spending towards many of the government programs mentioned above which would allow the money to be either spent on other valuable programs, or saved which would reduce our current budget deficit and our national debt. Additionally, this would slightly reduce the income gap across all Americans and help some people improve their standard of living.

    ReplyDelete
  4. I agree that minimum wage should be raised for both working mothers and fathers and students who are trying to raise money for college. The more money that people have, the more they will spend which is good for the economy. Some jobs are a lot of work, and when you mix that with raising a family or school work and extracurricular activities, people deserve more money for their time.

    ReplyDelete
  5. You brought a lot of different sides so the minimum wage debate. It's easy to say "I want to get paid more" without weighing all of the positives and negatives first. For example, I'm sure many don't realize that it will go as far to affect government programs such as food stamps. People have to weigh the opportunity cost of making more money versus paying more for goods and services before they take their stance.

    ReplyDelete
  6. I do not think that we should increase minimum wage to the popular $10.95 per hour. Many companies that pay minimum wage have a reason to do so; they can not pay their employees more. If the minimum wage were to increase, people may get laid off. So instead of making minimum wage, these people would make nothing. If raising minimum wage is a mandatory government regulation, I believe that some experiments should be tested to see how different companies react to a higher minimum wage.

    ReplyDelete
  7. I do agree with you that people shouldn't be as reliant on food stamps, but if wages are increased, the prices of goods are also increased, causing inflation, and it wouldn't help the problem. I think people should be able to help themselves and work harder to find a job that doesn't pay minimum wage so that they can create a better life for themselves rather than relying on government programs, because otherwise they will remain unmotivated. Also, although lower quality restaurants would potentially close down, wouldn't that just leave more expensive restaurants? Then people wouldn't be able to go out to eat as often as they like, or continue going out anyway and would still have overspending problems. Overall, I think you brought up some good points, but I don't agree that there are more positives than negatives due to the effects it would have on the economy.

    ReplyDelete
  8. Increasing minimum will have a huge impact on the economy. A much more worse one than negative one as well. As Lauren said above it will cause input prices of goods to increase, supply of goods to increase, and a lot more shortages and increased prices. This is not the correct solution to the problem of people on food stamps as all it will do is make the food stamps worth less and more to be needed. There is definitely another, better solution out there.

    ReplyDelete
  9. I really don't think wages should be raised. If they were to be raised so many people would start to lose their jobs, because company's wouldn't be able to afford paying a huge staff. Not only that but lets say their raised wages at McDonald's, the prices on the there would go right up. I feel like people who want to make more money need to work for it, it shouldn't just be handed out.

    ReplyDelete
  10. For minimum wage to properly reflect price level in the economy, it should receive occasional cost of living adjustments for inflation. If minimum wage raises proportionally to inflation, the purchasing power remains constant. However, raising the minimum wage above inflation rates could have damaging affects on hiring capabilities of companies while also diminishing the supply of many firms as the input cost increases. Also, minimum-wage employees would spend more, increasing aggregate demand. The increased aggregate demand and decreased supply could have negative affects on the aggregate price level by causing higher inflation. Once this inflation occurs, many minimum-wage employees would have the same purchasing power that they originally had, but now everyone's savings would have been devalued due to inflation. Overall, I think that it is important to consider macroeconomic responses to socioeconomic policy.

    ReplyDelete
  11. Are you a business man or woman? Are you in any financial mess or Do you need funds to start up your own business? Do you need a loan to start a nice Small Scale and medium business? Do you have a low credit score and you are finding it hard to obtain capital loan from local banks and other financial institutes?. Interested applicants should Contact us via email: PergoCF@cheerful.com ( PergoCF@qualityservice.com ) PergoCF@gmail.com

    Our loans are well insured for maximum security is our priority, Our leading goal is to help you get the services you deserve, Our program is the quickest way to get what you need in a snap. Reduce your payments to ease the strain on your monthly expenses. Gain flexibility with which you can use for any purpose from vacations, to education, to unique purchases. Interested applicants should Contact us via email: PergoCF@cheerful.com ( PergoCF@qualityservice.com ) PergoCF@gmail.com

    We offer a wide range of financial services which includes: Business Planning, Commercial and Development Finance, Properties and Mortgages, Debt Consolidation Loans, Business Loans, Private loans, Home Refinancing Loans with low interest rate at 1.00% per annul for individuals, companies and corporate bodies. Get the best for your family and own your dream home as well with our General Loan scheme. Interested applicants should Contact us via email: PergoCF@cheerful.com ( PergoCF@qualityservice.com ) PergoCF@gmail.com

    WE OFFER ALL KIND OF LOANS - APPLY FOR AFFORDABLE LOANS.

    Please, contact us for more information: PergoCF@qualityservice.com ( PergoCF@gmail.com ) PergoCF@cheerful.com
    Kindly write us back with the loan information;
    - Complete Name:
    - Loan amount needed:
    - Loan Duration:
    - Purpose of loan:
    - City / Country:
    - Telephone:
    - How Did You Hear About Us:

    If you are interested to get a loan then kindly write us with the loan requirement. Please, contact us for more information: PergoCF@qualityservice.com ( PergoCF@gmail.com ) PergoCF@cheerful.com

    Yours Sincerely,
    Mr. Ren Hya
    PergoCF@qualityservice.com ( PergoCF@gmail.com ) PergoCF@cheerful.com
    We look forward to hear from you ASAP
    Interested applicants should Contact us via email: PergoCF@qualityservice.com ( PergoCF@gmail.com ) PergoCF@cheerful.com

    ReplyDelete
  12. We Offers Financial Consulting To Client, Companies Seeking Debt / Loan Financing And Seeking For Working Capital To Start A New Business Or To Expand Existing Business. Interested Parties Should Contact Us For More Information Through Via E-mail: SuiteCapitals@gmail.com ( SuiteCapitals@post.com )

    We Have Loan Programs Tailored For Any Profile And You've Come To The Right Place To Satisfy Your Business Needs. If Your Company Or You Know Of Any Company With Viable Projects / Proposals That Needs Financing, Kindly Write Us With The Loan Requirement. Please, Contact Us For More Information: SuiteCapitals@gmail.com ( SuiteCapitals@post.com )

    You Will Hear From Us. Well Nice To Meet You And I look forward to our Business Acquaintance. Interested Parties Should Contact Us For More Information Through Via E-mail: SuiteCapitals@gmail.com ( SuiteCapitals@post.com )

    Do You Need A Loan To Consolidate Your Debt At 1.0%? Or A Personal Loans * Business Loans etc. Interested Parties Should Contact Us For More Information Through Via E-mail: SuiteCapitals@gmail.com ( SuiteCapitals@post.com )

    ReplyDelete
  13. We Offers Financial Consulting To Client, Companies Seeking Debt / Loan Financing And Seeking For Working Capital To Start A New Business Or To Expand Existing Business. Interested Parties Should Contact Us For More Information Through Via E-mail: SuiteCapitals@gmail.com ( SuiteCapitals@post.com )

    We Have Loan Programs Tailored For Any Profile And You've Come To The Right Place To Satisfy Your Business Needs. If Your Company Or You Know Of Any Company With Viable Projects / Proposals That Needs Financing, Kindly Write Us With The Loan Requirement. Please, Contact Us For More Information: SuiteCapitals@gmail.com ( SuiteCapitals@post.com )

    You Will Hear From Us. Well Nice To Meet You And I look forward to our Business Acquaintance. Interested Parties Should Contact Us For More Information Through Via E-mail: SuiteCapitals@gmail.com ( SuiteCapitals@post.com )

    Do You Need A Loan To Consolidate Your Debt At 1.0%? Or A Personal Loans * Business Loans etc. Interested Parties Should Contact Us For More Information Through Via E-mail: SuiteCapitals@gmail.com ( SuiteCapitals@post.com )

    ReplyDelete

Related Posts Plugin for WordPress, Blogger...