The equilibrium wage rate is reached when the number of workers is adequate to meet job demand; this is an ideal situation insofar as economic stability, but it requires an effective social contract provided by the government. Increasing minimum wages in the United States has always been a touchy issue.
Salaried employees like executives, administrators, highly-trained professionals, and computer programmers as well as outside salespeople may qualify for FSLA exemptions. Oddly enough, minimum wage increases adjusted for the inflation they cause raise the real income of most families as compared to the poverty level.
Is the minimum wage too high? The Cons Low wages have been a staple of business efficiency since the late 20th century. Raising the minimum wage without EITC upgrades would help many families, but not necessarily the poorest.
This situation often results in stagnant growth. Increased prices mean a general increase in the cost of living that could essentially negate any advantage gained by workers having more dollars in their pockets. How does the minimum wage affect people at all wage levels?
For this reason, some experts say the EITC has a greater effect on the very poor than the minimum wage. Pros of a Higher Minimum Wage Raising the minimum wage on a regular basis helps families keep up with price inflation.
One potential negative impact that is less readily apparent is the possibility that a higher minimum wage would result in increased labor market competition for minimum wage jobs.
He said this would improve the U. Maverick September 5, — 1: An intangible benefit that could translate into tangible benefits for both companies and employees is improved employee morale resulting from higher wages.
Though some people would lose their jobs, the working poor as a group would benefit. Increased wages and spending raise demand and create more jobs.
Given the power of the working-class voting block as evidenced in the election cyclelawmakers may well avoid raising the federal minimum wage. Pros The primary argument advanced in favor of raising the minimum wage is that it would improve the overall standard of living for minimum wage workers by providing them with a more appropriate income level to handle cost of living increases.
This could impede younger, less experienced entrants to the job market from obtaining work and gaining experience to move their careers forward. So far, 29 states and several urban areas have set minimum wages higher than the federal minimum, typically to address higher-than-average costs of living.Economists Weigh the Pros and Cons of a $15 Minimum Wage.
By Susanna Kim Close Follow on Twitter More from Susanna urging them to raise the minimum wage to $ now $ an hour. Increasing the minimum wage would have a ripple effect, raising the incomes of people who make slightly above the minimum wage. Melissa S.
Kearney, PhD, and Benjamin Harris, PhD, of the Brookings Institution found that increasing the minimum wage would result in higher wages not only for the million people earning minimum wage, but. The debate over raising the minimum wage has been a hot topic after President Obama explained in his State of the Union Address that he intends to raise the minimum wage from $ to $ per hour, an increase of over 40 percent.
Currently, 29 states and the District of Columbia have a higher minimum wage than the federal rate. As of July27 cities had also passed laws raising the minimum wage – although some states subsequently passed legislation requiring cities to adhere to statewide minimums.
Raising the minimum wage in the medium to long term only creates more poverty and rising wealth inequality. The long term solution is to implement some yet to be determined form of Basic income which is problematic to say the least.
The Pros & Cons Of Raising Minimum Wage Written by J. Hirby and Fact Checked by The Law Dictionary Staff The second term of President Barack Obama will always be remembered for the intense debate prompted by minimum wage .Download