Essay on Raising Minimum Wage Increases Unemployment

â€Å"Of course, nothing helps families make ends meet like higher wages. †¦ And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest-working people in America a raise.† -–President Obama, State of the Union address, Jan. 20, 2015 President Barack Obama is renewing his call to raise the minimum wage to $10.10. During a speech at a manufacturing plant, President Obama proclaimed, We should be raising the minimum wage to make sure that more workers who have been working full-time shouldnt be living in poverty.... He also called for a wage increase for tipped†¦show more content†¦This means that all tips are placed in a â€Å"pool† that is then distributed amongst each staff member at the end of the shift. Also, restaurants have to pay credit card processing fees. Some restaurants will take a small percentage out of the waiter’s tip to balance out these fees. The waiter still gets a high percentage of the tip but out of that $20 tip, the waitress may only get between $5 and $10 out of it. There are many things that alter a tip worker’s paycheck. A simple wage increase could make a huge difference in how much money they take home each week. Tip workers produce more than what they are paid for, which leads into the minimum wage effects on production. However, regular should not get a pay increase. Employers will have to pay workers more money for the same job, price adjustments will be made to accommodate the wage increases. Employees will be expected to produce more. For jobs that already require a lot of work, this could be very troublesome. Wages have an effect on production. For any job, an increase in pay means the job performance and contributions outweigh the current salary. If employers do not feel as though the increase is warranted, they may expect more from their employees. Also, employees will be fired faster because employers may feel as though workers are being overly compensated for their jobs. Some companies may also retaliate against the wage increases byShow MoreRelatedA Brief Note On Raising Minimum Wage1088 Words   |  5 PagesBrendan Mason Mrs. Scruggs 08/07/15 Raising minimum Wage There is always talk about the problems of North Carolina’s economy, and these problems then become publicized and put throughout the media, informing people on the condition of their state’s economy. A popular topic lately is the state’s minimum wage, and whether it should be raised or if we should keep the current minimum wage. Usually, opinions vary on what to do about minimum wage, however there certainly seems to be a larger group ofRead MoreThe Positive and Negative Effects of Raising Minimum Wage805 Words   |  4 Pagesincome. Many people’s income relies on minimum wage. In 2012, 3.6 million people received an hourly pay at or below minimum wage. There is an ongoing debate in government as to what the minimum wage should be. Stuck at $7.25, Obama has suggested raising the minimum wage to $9.00. Depending on a person’s perspective, raising minimum wage could be positive or negative. Minimum wage has the ability to change lives, and change t he economy. Small businesses and unemployment, teenage demographics, and the costRead MoreThe Effect of Minimum Wage on the American Economy800 Words   |  4 PagesThe Effect of Minimum Wage on the American Economy A sensitive topic for many Americans is their income. Many people’s income relies on minimum wage. In 2012, 3.6 million people received an hourly pay at or below the national minimum wage. There is an ongoing debate in Congress as to what the national minimum wage should be. Currently at $7.25, Obama has suggested raising the national minimum wage to $9.00. Depending on a person’s economic perspective, raising minimum wage could be positive or negativeRead MoreShould Minimum Wage Be Raised?870 Words   |  4 PagesShould Minimum Wage Be Raised? Minimum wage has always been a controversial issue. Many politicians use the argument of minimum wage for their own political propaganda. Some may argue minimum wage should be raised, while others believe it will have detrimental effects on our economy if it is raised. Surprising to most people, minimum wage earners make up only a small percent of American workers. According to the Bureau of Labor Statistics, minimum wage workers make up about 2.8% of all workersRead MoreRaising The Minimum Wage?1575 Words   |  7 PagesThe issue of raising the minimum wage from $7.25 to $15 an hour is a heavily debated topic. Both sources against or in favor of the minimum wage refer to a â€Å"growing gap† between low-income workers and high-income earners. Sources against the minimum wage believe raising it will increase this gap, whereas those in favor of the minimum wage believe it will decrease this gap. The arguments in favor of the minimum wage rely mostly on ethical beliefs, such a s â€Å"pay should reflect hard work,† to advanceRead MoreMinimum Wage During The Great Depression1419 Words   |  6 PagesThe Minimum Wage Battle In the United States, the minimum wage was passed during the Great Depression in 1938 to protect the buying power of normal workers in a period in which the â€Å"unemployment rate was still a very high 19 percent† (Sklar, 2009, p. 1). Since that time, there has been significant debate about the controversial topic of raising the federal minimum wage. The federal minimum wage law was created to eliminate unfair practices of sweat shops and manufacturing companies during this timeRead MoreMinimum Wage and the American Dream1258 Words   |  6 PagesAchieving the American Dream while earning minimum wage may take a person longer but it is still attainable. Through higher education or hard work individuals can achieve a higher standard of living. What is minimum wage? Minimum wage is the lowest hourly rate (dollars per hour) that employers can pay their employees. According to minimumwage.com Minnesota’s minnimum wage is $7.25 per hour but will be getting raised to $9.00 per hour. Minnesota’s minimum wage is a common rate among many states suchRead MoreMinimum Wage Should Be Raised910 Words   |  4 Pagesmaximize the American Dream on the minimum wage† (Benjamin Todd Jealous). In 1938, minimum wage was created by the federal government in order to protect workers by ensuring a minimum of twenty-five cents per hour worked. Though President Roosevelt had the right idea in protecting the workforce, something needs to be done to ensure that Americans are getting a reasonable amount of money for the amount of hours they have worked. As Benjamin Todd Jealous stated, minimum wage is not enough for the averageRead MoreMinimum Wage Should Be Legal1239 Words   |  5 PagesLisa Valk Kristoffer Martin English Composition Raise Minimum Wage There is not one state in the US where a minimum wage worker can afford a two-bedroom unit at fair market rent, working a standard 40-hour work week(There are a few states where this is not true. Also, the fair market rent is the average cost. It doesn t reflect the super expensive and bottom rent places). The federal minimum wage would be $10.86 [per hour] if it had kept up with inflation over the past 40 years. Instead, it isRead MoreMinimum Wage : Low Skilled And Young Workers1553 Words   |  7 PagesIntroduction Minimum wage, a program created to help the poor, has every contrary effect to its well intentions. Throughout the history, people who hurt the most during minimum wage hikes are the low-skilled and young workers. Drastically raising minimum wage is meaningless as high inflation usually comes alongside with wage increases. Past economic statistics have shown that the rate of increase in inflation usually outpaced the rate of increase in minimum wage. Thus, the real value wage workers receive