There are many positive effects. Minimal pay opens up the chances of occupations being offered to those who would non otherwise qualify for the higher paying occupations. These persons remain at the underside of the wage graduated table and they are given the chance to do their part to the economic system.
The United States economy is down right now and there is a debate speculating whether the minimum wage should be increased or decreased. The minimum wage is a well known price floor, "which sets a minimum price that an employer can pay a worker for an hour of labor" O'Sullivan and Sheffin, pg.
I personally believe that we should not increase the minimum wage, but decrease it instead. I would rather have the minimum wage lowered than increased because that will only lead to negative side effects.
For example, if the minimum wage is increased then the government will need to mint more money and the effect of minting more money is inflation. This will cause the American dollar to go down and worsen the economy even more.
Another thought is that what the United States needs now are jobs. If the minimum wage is increased then existing jobs will want their workers to have more experience and for those people that are in dire need to a job will have a lower chance of getting the job because they may not have the experienced needed or plain and simple he or she may just not get chosen.
Increasing the minimum wage will just increase competition among the unemployed and less people will be hired and that is not what the United States needs and it will not affect the economy much.
But if we lower the minimum wage, those jobs will not be as picky and strict so they will hire more people because they will not expect the hired people to have much experience.
Decreasing the minimum wage is the only logical solution for the recovery of the American economy.
The United States main goal right now should be to create more available jobs for the unemployed and the easiest way to do that is to lower the minimum wage.
They studied the relations between the minimum wage and the unemployment rate in certain states in the United States. In most of their studies they, "found that the entire net effect of an increase in minimum wage results in a slight decrease in employment. This shows that if the minimum wage is increased, that it will lead to an even higher unemployment rate and that is exactly what we do not want for the United States.
We want the unemployment rate to decrease so we would have to decrease the minimum wage to reach that goal or at least keep the minimum wage steady because the professors proved that, according to the Princeton Study, "employment actually expanded in New Jersey relative to Pennsylvania, where the minimum wage was constant" Cascio, Crane, and Teter.
This shows that we have two choices: This also proves that increasing the minimum wage should not even be an option because it will ruin the economy even more. Short term the economy may not see any change in the economy but in the long run it will start helping the economy for the good of the nation.
Even in individual states the minimum wage debate is a major conflict. For example, in California the minimum wage is affecting American families individually. Especially families on welfare, there was a study that stated that "Mothers on welfare in states that raised their minimum wage remained on welfare 44 percent longer than mothers on welfare in states where it was not raised" Garfield.
This shows that a higher minimum wage is making life more difficult for the people living in poverty. It would not be fair to increase the minimum wage just to circulate more money within the country and make millions of people suffer when they really do not have to when we can just decrease the minimum wage and wait for the economy to recover.
Another example of how the minimum wage is affecting people is the Circuit City situation. The store retailer made a "cost-saving move: This shows that many stores are going bankrupt because of the economy and resorted to firing high paid employees and having to deal with less experienced employees.
To the owner of Circuit City, they believed that they would be able to survive if they made cuts and make up for them later but even this huge cut could not save them.
As a result of firing so many highly paid employees, "Circuit City then hired about 2, lower paid hourly workers to replace Mr. Wood and the others" Pearson. This proves that many companies are going to try this method and hope that it will help them more tha it did Circuit City.The Positive Effects of Minimum Wage on the Economy Essay Sample.
Categories. Minimal pay opens up the chances of occupations being offered to those who would non otherwise qualify for the higher paying occupations. which require college grades (Characteristics of Minimum Wage Workers.
). We Will Write A Custom Essay Sample On. Minimum Wage Essay Example 1 It sounds like good news for the low-income workers and their families whenever the government increases the minimum wage. The United States Congress adopted the Fair Labor Standards Act in An examination of the empirical evidence on low-wage workers and the effects of minimum wage increases reveals that: • No evidence exists that teenagers or less-than-high-school-educated adults lost work as a result of the minimum wage increases.
Minimum wage laws set the minimum hourly wage a worker can be paid.
A minimum wage of $, for example, means a worker cannot legally contract with an employer to work for below $ an hour. More Essay Examples on Society Rubric Perhaps one issue of concern to many is regarding the minimum wage hike - Should the Minimum Wage be Increased?Essay introduction?
However, raising the minimum wage does not only concern the minimum wage workers but actually almost every person in the community, from the simplest unit such as the family to the whole community. Abstract This paper discusses some of the additional effects raising the minimum wage income has on society.
The United States low wage workers, namely the fast food industry workers are currently demanding higher wages. We will discuss the effect of those higher wages to .