Monday, April 15, 2013
Following the president's call for a raise on the minimum wage to $9.00, Sen. Tom Harkin (D-Iowa) and
Rep. George Miller (D-Calif.) indicated their support for increasing the minimum wage to $10.10, which now formalized to be the Fair Minimum Wage Act of 2013 (Cooper and Hall). Some people do not agree with the idea that an increase on the minimum wage will benefit the economy and the workers. Some of the minimum wage workers argue that they will loose theirs job if the minimum wage increases, because the employers will try to hire less people to balance out the benefit. Will raising the minimum wage really create disadvantages for the workers and affect the economy in a negative way? It is understandable that so many people are concerned about the new proposal of the government, but it will give the economy a much-needed boost and benefit so many people.
Some workers and organizations do not support the Fair Minimum Wage Act of 2013. Some argue that
the raise on the minimum wage will kill jobs and influence the employers to higher less people. An article about the opposing view of the increase on the minimum wage states: "new obligations for businesses could kill jobs, discourage employers from hiring workers, and ultimately slow the recovery" (Cook). As mentioned in the article, some people think that the raise on the minimum wage will hurt the economy and put more workers in danger. In other words, some argue that we do not need a raise on the minimum wage. The government just came up with the Fair Minimum Wage Act of 2013, and this will boost up the economy and benefit millions of Americans. A document of the Economic Policy Institute states: "Recent research reveals that, despite skeptics’ claims, raising the minimum wage does not cause job loss.In fact, throughout the nation, a minimum-wage increase under current labor market conditions would create jobs" Cooper and Hall). Approximately 140,000 net new jobs will be created during the phase-in period. This means that the workers out there will have much more opportunities than they ever did before. Also raising the minimum wage will put more money in the pockets of working families, which means that the workers will spend more. The increase on the minimum wage will lead to more spending of the working families at small/local businesses, which means that the employers will be making more money because people spend more. Then if more people start to spend at the businesses, the employers will need more people to work for them; which leads to more hiring of employees and giving more people the chance to work. These researches were done by the government, so it makes the statements reliable. The government knows the best about our economy, and the government came up with the proposal because they recognize the urgency of the issue. The Fair Minimum Wage Act will increase the wage for about 30 million workers in the country. The positive effects resulting from the increase of the minimum wage are clear: it will boost up the economic growth, boost earnings of millions of workers, and create about 140,000 net new jobs. Millions of Americans will benefit from this act.
Citation:
Cook, Nancy. "Why a Minimum-Wage Hike Can't Help the Poor." National Journal(2013). Opposing Viewpoints In Context. Web. 15 Apr. 2013.
Cooper, David, and Doug Hall. "RAISING THE FEDERAL MINIMUM WAGE TO $10.10 WOULD GIVE WORKING FAMILIES, AND THE OVERALL ECONOMY, A MUCH-NEEDED BOOST." Economic Policy Institute. EPI, 13 Mar. 2013. Web. 13 Apr. 2013. <http://www.epi.org/files/2013/bp357--federal-minimum-wage-increase.pdf>.
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