Essay Example on The ones who are against it claim that several Companies

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The ones who are against it claim that several companies do not have enough money for higher wages They will be forced to close their business or reduce their workers which will effect on an unemployment rate They will not be able to pay their workers higher than the current minimum wage It will make more difficult for students low skilled workers unprofessional or inexperienced workers to find a job Companies does not want to pay a high wage salary to those who have no experience of job they would rather hire people who have experience and knowledge of their field and pay the same amount of money Raising the minimum wage can hurt the low income families ProCon 2018 PRO CON ARGUMENTS PRO CON 1 A quiet sum of Jobs will be stimulated if the raise in the minimum wage is realized and at the same time improve economic activity According to the Economic Policy Institute an increase from 7 25 an hour for an average person to 10 10 will bring a net of 22 1 billion into the economy of the country furthermore create about eighty five thousand new openings in three years Chicago Economists of the Federal Reserve Bank also stated that an increase in minimum wage will raise the GDP of the US and will lead to job growth 



A study shown by Alan Krueger PhD and David Card PhD in 1994 where fast food industry in New Jersey increased a minimum wage by eighty cents while that of Pennsylvania was the same The study showed that it did not affect job growth and it appeared to be the same for the two states Their research was confirmed by economists Hristos Doucouliagos PhD and T D Stanley PhD after reviewing 64 minimum wage studies They found little or no evidence of a negative association between minimum wages and employment ProCon 2018 Increase in minimum wage will force businesses to decrease their employees after what it will raise unemployment rate According to the Congressional Budget Office five hundred thousand occupations would be destroyed if there happens to be a move up in minimum In a survey that was done when the minimum wage moves up by ten percent shows thirty eight percent of human resources employers and one thousand two hundred and thirteen businesses would lose their and fifty four percent said that they would reduce the level of employment At Johns Hopkins University a Professor of Applied Economics PhD Steve H Hanke on his research in 2014 surveyed 21 EU countries that have minimum wage and found that they had an average unemployment rate of 11 8 about a third higher than the 7 9 unemployment rate in the seven EU countries that have no minimum wage ProCon 2018 PRO CON 2 The government would decrease its welfare expenditure on the entire budget as a whole after a greater minimum wage is set At the end of the day when employers have enough to take care of their bills and other extravagant expenses the government would not have to bear seeing the same people coming to them for support Four billion that is six percent reduction of the amount that goes in the Supplemental Nutrition Assistance Program will be realized when the minimum wage is raised by six percent to 10 10 according to a report from Center for American Progress West Reich 2014 in addition to this point the Economic Policy Institute showed that one million and seven hundred thousand Americans would not need to rely on government support programs that is when the minimum wage is 10 10 Cooper 2014

In relation to this the minimum wage has failed to give enough money for one to get a house A report made by the National Low Income Housing Coalition depicted that for an employee to be able to afford a self effacing one bedroom apartment he or she should be earning a minimum wage of 15 50 Swanson 2015 This gives a clear indication that the government would be indeed released off some cost that a higher minimum wage can do From another point of view Oxfam America s poll in 2013 came a conclusion that sixty six percent of employees getting less than ten dollars for an hour hardly or don t meet their basic necessities The government does not pay all entire workers in the country since some of the businesses are owned by private entities Nevertheless the private entities have small business within them and some are in their start up stages an indication that it would be difficult for them to foot the required bills if minimum wage is increased Gallup poll which took place in 2013 showed that sixty percent of small business possessors argued that the increase will hurt most small business owners Dugan 2013 High minimum wage means higher expenditure value for business hence higher cost in the production of products or service by a business The likelihood of not having enough capital to pump it into the business is one thing and the other is the loss of one s customers due to the hugely change in prices CONCLUSION To bring the case to rest as an observation from the charted by US Department of Labour the trend of minimum wage has not followed up with the rate of inflation over time since 1968 US Department of Labor A state in which the money at hand has reduced value compared to its initial state One needs more money to buy the same product due to inflation Increasing the minimum wage for it to tally with the ever change inflation rate would go a long way help both the government in power and the people as a whole On this note one can conclude by saying that minimum wage in the Federal states of United State of America should be increased


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