The case against a higher minimum

In other words, it means observing — not just seeing. Continue Reading.

benefits of raising minimum wage

Under current law29 states and D. Krueger and Card observed that job growth in the fast food industry was similar in both states, and found "no indication that the rise in the minimum wage reduced employment.

Pros and cons of raising minimum wage

Among the 34 Organisation for Economic Cooperation and Development OECD member countries, the United States has one of the highest levels of income inequality, with only Chile, Mexico, and Turkey having higher levels of income inequality. Mroz, PhD, and Timothy H. What does all of this mean? They thus have perfectly rational reasons to be willing to work for less than that here. The report stated: "In no state can an individual working a typical hour work week at the federal minimum wage afford a one- or two-bedroom apartment for his or her family. Raises the incentive for companies to outsource labor to countries where minimum wage rates are lower. Any student of even elementary economics in the real world knows that if you artificially raise the price of something, you risk creating a black market. Since firms are allowed to pay poverty-level wages to 3. Nobody else is above 3. This in turn means that fewer units can be made and that the price of the good itself will also increase. Wages for higher paid workers might be suppressed, and salary increases might be lower for those not impacted by a higher minimum wage. Conservatives also argue that higher minimum wages lead to more replacement of workers with machines. They learned basic skills like showing up on time, following instructions and interacting with customers.

Increasing the minimum wage will only prevent him from finding that first paid job and will keep him in a perpetual state of unemployment. Don Boudreaux, PhD, Adjunct Scholar at the Cato Institute, explained, "the minimum wage cuts off the first rung of the employment ladder, and it's that first lowest paying rung that provides the skills and experience workers need to reach the next rung and to continue climbing their way to a better life.

So any plan to raise prices, to be effective, needs to be accompanied by increased enforcement aimed at eliminating the black market.

Reasons why minimum wage should be raised

Krueger and Card observed that job growth in the fast food industry was similar in both states, and found "no indication that the rise in the minimum wage reduced employment. An increase to the minimum wage would provide an incentive for employers to invest in automated processes, technology, and machinery to increase productivity rather than human resources. But these jobs and others like them no longer exist. The report also found a 6. As of Jan. Advertisement Advertisement A second problem is that most minimum-wage jobs actually are not all that mobile, so the net result of a single federal rule is more to eliminate jobs than to prevent them from migrating elsewhere. These rigidities can decrease relative mobility and According to Aaron Pacitti, PhD, Associate Professor of Economics at Siena College, raising the minimum wage would help reduce the federal budget deficit "by lowering spending on public assistance programs and increasing tax revenue. So any plan to raise prices, to be effective, needs to be accompanied by increased enforcement aimed at eliminating the black market.

Raises the incentive for companies to outsource labor to countries where minimum wage rates are lower.

Rated 6/10 based on 27 review
Download
Pros and Cons of Raising the Minimum Wage