Politicians had frequently supported raising the minimum wage over the previous two years and the election. Most Democrats support growth at the same time that Republicans generally oppose it. Democrats argue that we want a minimum wage boom to lift humans out of poverty. The proposed new minimum wage increased from a low of $9.50 an hour to a high of $15 an hour. In this article, I will discuss why an increase in the minimum wage could harm the problem it is supposed to solve as it causes growth in inflation, unemployment, and makes it harder for younger workers to enter the workforce. plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The minimum wage was first established in 1938 by President Franklin Roosevelt. “I am fully aware that wage increases will ultimately increase costs, but I ask that management give priority to improving operational data.” (Roosevelt 1938) At the time the minimum wage was $0.25 an hour ( Kurtz 2015).It is enacted so that agencies cannot cut workers for extraordinarily low wages after adjusting for inflation may be $10.86 in 1968 (Kurtz 2015). for the federal minimum wage. States are free to set their own minimum wage at a different level. California recently voted to raise the minimum wage to $15 an hour they make sure organizations don't leave their nation because they can locate inexpensive businesses in other states Walmart left DC after multiplying their minimum wage, so many states have gained growth unless the federal minimum wage increases. Most American workers don't make a minimum wage. Only 3.9% of working humans earn minimum wage or less (four reasons not to raise the minimum wage). Earning the minimum wage are young adults and younger workers. 15% of teenagers earn minimum wage or much less than the top 3% of people over age 25 (Patton 2014 may be more effective). assist a small percentage of employees and that doesn't even take into account the negative outcomes it motivates. In financial terms, a living wage is a minimum level charged. This is when a positive price level is available and an organization cannot charge a price lower than that level, but a company can charge a higher price. This causes an upward shift in the supply curve and a decrease in the amount requested, along with growth in tariffs. The workers are the delivery with the help of submitting the hard work (they deliver the hard work) and the agencies are the requesters. So, an increase in the minimum wage would then cause a boom in the number of employees looking for work, a boom in 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 a minimum wage boom would bring is inflation. When the price of labor increases, organizations will increase their rates to compensate for that growth, assuming it succeeds in reducing the number of products they are able to promote. They will try because they are trying to maximize profits. Businesses are dedicated to their hobbies and aim to earn as much money as possible and grow theown organization. They are controlled to increase their wages without having some other benefit reduced. The tariff increases that commercial enterprises could impose would only be a small increase, but humans, so to speak, are the most and humans doing so will most affect people who are already not well off and some of them could gain the minimum wage. A 2004 study showed that a 10% boom in the minimum wage could cause a 4% boom in food costs (four reasons not to raise the minimum wage). This shows that if we increase the minimum wage, even by a small amount, it will have a drastic effect on the costs of producing accurately through the use of cheap, hard labor. Most Americans won't say a 4% increase in the cost of meals, but terrible people will. This disproves the argument that growth within the minimum wage could help bad humans out of poverty; in fact, it could make a difference. opposite. The next negative impact a minimum wage boom could have on our financial system is an increase in unemployment. This would manifest itself because, as the labor rate increases, it would reduce people's working hours or lay people off so that they do not have to increase production costs. In 2010, it was projected that 1.3 million jobs would be lost if the minimum wage increased to $9.50 an hour. This could result in a loss of approximately 15% of all minimum wage jobs, assuming that all jobs lost were paid at or below the minimum wage. If the minimum wage became higher, some people would be able to see again, but others would be worse off. Those 1.3 million workers could be worse off and may now struggle not only to pay their wages, but also to find work again. One thing agencies would do to replace employees if the minimum wage was raised is to automate too much. Companies could start purchasing machines that could do a business's job for them so they don't have to pay the most effective maintenance costs for a worker's salary. You might also ask why this hasn't already been done. In some places yes. For example, many grocery stores now have self-checkout lines, so there are fewer cashiers to hire. In many industries, such as quick meals, this has not happened, but because of this there is a high start-up cost associated with such machines. For example, there are machines out there to be able to prepare burgers and food at McDonald's, so using them could reduce the number of employees there. These machines, however, are expensive. With the minimum wage at the far right price it is now not in the company's core interest to use these machines because it would be cheap to use human labor (Saunders 2016). If we multiplied the minimum wage, it would swap and companies could start automating sooner than they normally would. With a reduced amount of employment due to minimal wage growth, young employees could be hurt the most. This could make it more difficult for younger people to join the workforce. For example, when New York State accelerated its minimum wage from $5.15 an hour to $6.25 an hour, there was a 20.2 to 21.8 percent drop in employment for uneducated youth. This is the very demographic that humans are trying to help with a minimum wage increase and it is proving harmful. When younger humans are unableof getting their first business early, it becomes harder for them to get better, well-paying jobs later in their lives. These minimum wage jobs would now not just go to younger, uneducated people. They might start targeting more knowledgeable and affluent people because raises have gone up, so companies might just hire people who are worth the salary they're offering. Ben Carson supports a separate minimum wage for people under the age of 25, however, most other minimum wage laws will not consider this crisis and will hurt young people who are trying to get their first job. I would support this with more humans earning a better salary, which could lead to humans having more disposable income to spend more and create more jobs. This topic, however, no longer results in a terrible situation if you put it in motion. If the minimum wage is expected to be raised to $15 an hour and all new earnings minus taxes to be turned into spending, this could lead to a GDP boom of 0.23%. However, this would not manifest itself. It is unrealistic to predict that there will be no process loss and that all new profits would be spent. However, this is not a good monetary increase. Decreasing taxes or laws could cause a similar, if not greater, financial increase without worsening the poverty and welfare conditions of additional human beings. Another argument made is that the minimum wage must be a wage where one does not remain in poverty and at the same time holds a full-time job. This argument is partially false because if you work 40 hours a week at minimum wage for 52 weeks a year you will earn above the poverty line for a person. For families, this is not above the poverty line, however 97% of people over the age of 25 earn above the minimum wage. Raising the minimum wage could lift only a small fraction of people out of poverty, if they ever were the ones to be put out of poverty first. Most people on minimum wage aren't even in poverty. When the minimum wage remained raised, only 13% of people who benefited from it came from negative families. Most people on the minimum wage are young people under the age of 25. These are young adults from middle-class families or who attend university. Most of these humans don't want to make $15 an hour to live. I better have to pay for my books and spend money even while I'm on faculty, so getting a minimum wage job at some point during the summer will provide me with plenty of money to stay away from at some point in the opposites 9 months of the year. Furthermore, raising the minimum wage could push companies to pay people more than the free market dictates for their paintings. All the different jobs are paid what they are worth, why shouldn't low-level qualifications and those without a degree be special? Morally, is it right and just to help others at the expense of others? Many people are inclined to work jobs at or below minimum wage, because some of them should be punished and lose their jobs because humans think a better minimum wage is needed. If federal authorities made a decision that all university professors should be paid better than $150,000 a year, many professors could be fired. We could have large class sizes and all the professors losing their jobs would be pissed. The same goes for the minimum wage..