Politicians have often argued for raising the minimum wage over the past two years and elections. Most Democrats advocate for growth, while Republicans generally oppose it. Democrats say we want a minimum wage boom to lift human beings out of poverty. The proposed new minimum wage ranges from as low as $9.50 an hour to a high of $15 an hour. In this essay, I will explain why an increase in the minimum wage could do the most harm to the problem it is intended to solve, because it causes growth in inflation, unemployment, and makes it harder for young workers to enter the workforce. labor market. plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay The minimum wage was first established in 1938 by President Franklin Roosevelt. that management prioritizes improving operating figures. » (Roosevelt 1938) At the time, the minimum wage was $0.25 per hour (Kurtz 2015). It is passed so that agencies cannot reduce workers' wages to extremely low wages. The highest it has ever reached after adjusting for inflation could be $10.86 in 1968 (Kurtz 2015). This only concerns the federal minimum wage. States are free to set their own minimum wage at a separate level. California recently voted to raise its minimum wage to $15 an hour (Richardson. “By living wage, I mean more than just a subsistence level – I mean a decent living wage.” ( Roosevelt 1933). Most states, however, have a minimum wage set at the federal degree level. They do this so that organizations do not leave their state because they can find cheap efforts in other states. Walmart left DC after increasing its minimum wage, as many states have gained growth unless the federal minimum wage increases. Only 3.9%. of working human beings earn minimum wage or less (Four reasons not to raise the minimum wage). Young adults and young workers earning minimum wage earn minimum wage or less, compared to just 3. % of people over 25 (Patton 2014). helping a small percentage of employees and that doesn't even take into account the negative outcomes it causes. In financial terms, a minimum wage is a floor charged. This is when a positive price level is available and a company cannot charge below this price level, but a company can charge above it. This causes the supply curve to shift upward and the amount demanded to fall, in conjunction with an increase in costs. The workers perform the service through hard work (they put in the hard work) and the agencies are the requesters. Thus, an increase in the minimum wage would result in an increase in the number of employees looking for work, an increase in the number of people looking for work, and a decrease in the number of jobs offered. Inflation could also occur due to an increase in the price of labor. The first terrible effect that an increase in the minimum wage would cause is inflation. When the price of labor increases, organizations increase their fees to compensate for this growth on the assumption that they receive a decrease in the number of products they are able to promote. They will try this because they are looking tomaximize their profits. Businesses serve their own hobbies and aim to make as much money as possible and grow their organization. They are controlled to increase their salaries without other benefits being reduced. The increases in charges that the commercial enterprise could decree would only represent a small growth, but human beings so that we can formulate them to the maximum and the humans that it will affect to the maximum are the people who are already not well off and some of them may be earning minimum wage. A 2004 study confirmed that a 10% increase in the minimum wage could lead to a 4% increase in food prices (Four Reasons Not to Raise the Minimum Wage). This proves that if we raise the minimum wage, even by a small amount, it will have a drastic effect on the costs of producing accurate production through cheap, hard labor. Most Americans won't see a 4% increase in their meal costs, but terrible people will. This refutes the argument that raising the minimum wage could help bad human beings out of poverty. In fact, it could do everything possible. opposite. The next negative impact a minimum wage boom could have on our financial system would be an explosion in unemployment. This would manifest in the fact that because the labor rate was increasing, they would reduce work hours or lay off humans so as not to have to increase production costs. In 2010, 1.3 million jobs were expected to be lost if the minimum wage increased to $9.50 an hour. This could represent a loss of about 15% of all minimum wage jobs assuming all lost jobs were paid at or below minimum wage. If the minimum wage were increased, some humans might benefit, but others would be worse off. These 1.3 million jobs could find themselves worse off and they could be struggling now not only to pay their fees, but to find work again. One thing agencies would do to replace employees if the minimum wage was increased. too excessive would be to automate. Companies could start buying machines that can do a company's work for them so they don't have to pay the most efficient maintenance prices for a worker's salary. You can also ask why this hasn't been done already. In some places this is the case. For example, many grocery stores now have self-checkout lines, which reduces the number of cashiers that need to be hired. In many industries, such as fast food, this has not happened, but that is why there are high start-up costs associated with these machines. For example, there are machines to prepare hamburgers and food at McDonald's, so their use could reduce the number of employees. These machines are expensive, however. With the minimum wage at current prices, operating these machines is not among the company's top pastimes because it would be inexpensive to use human labor (Saunders 2016). If we increased the minimum wage, this would change and businesses could start automating sooner than they usually would. With fewer jobs due to minimal wage growth, younger workers could be hardest hit. This could make it harder for young people to enter the workforce, to begin with. For example, when New York State accelerated its minimum wage from $5.15 per hour to $6.25 per hour, there wasan increase from 20.2 to 21.8%. decline in employment for a greater number of uneducated young people. This is the exact demographic that humans are trying to help with a minimum wage increase and it turns out to hurt them. When younger humans are unable to get their first job early, it is more difficult for them to land better-paying jobs later in life. These minimum wage jobs would no longer be reserved only for younger, uneducated people. They might start going to more skilled and affluent people because the raises have gone up, so companies might just hire people who are worth the pay they're giving. Ben Carson advocates for a separate minimum wage for people under 25, but most other minimum wage laws won't address this crisis and it will hurt young people trying to get their first chance . would say that with more humans earning better wages, this could lead to humans having more disposable income to spend more and create better jobs. But this argument no longer achieves much if we put it into motion. If you expect the minimum wage to be raised to $15 an hour and all the new revenue minus taxes to be spent, that could lead to a GDP boom of 0.23%. This would not manifest itself, however. It is unrealistic to think that there will be no process losses and all new profits will be spent. However, this is not a considerable monetary increase. Reducing taxes or the law could result in a similar, if not greater, monetary increase without making other human beings worse off and falling into poverty and onto welfare. Another argument made is that the minimum wage must be a wage that does not simply allow one to remain in poverty while holding a full-time job. This argument is partly false because if you work 40 hours a week at minimum wage for fifty-two weeks a year, you will earn above the poverty line for a single person. For families, this figure is not above the poverty line, but 97% of people over 25 earn above the minimum wage. Raising the minimum wage could only lift a small portion of the population out of poverty, if it was ever there in the first place. Most minimum wage earners don’t even live in poverty. When the minimum wage remained increased, only 13% of people who benefited were from negative households. Most people receiving the minimum wage are young people under the age of 25. These are young adults from middle-class families or who may be in college. Most of these humans don't want to make $15 an hour for a living. I especially want to pay for my books and spend money even when I'm in school, so getting minimum wage during the summer will provide me with plenty of money to keep aside during the other nine months of the year . . Additionally, raising the minimum wage could push businesses to pay people more than the free market dictates. All different jobs are paid what they cost, why shouldn't low professional and non-degree be special? Morally, is it right and just to help others at the expense of others? Many people are inclined to accept jobs at or below minimum wage. Why should some of them be punished and lose their jobs because human beings think there should be a.