Article Rebuttal: Minimum Wage Essay

1501 words - 6 pages

Article Rebuttal: Minimum Wage
Over the years there has been much debate about raising the federal minimum wage. Some states have taken it upon themselves to set higher minimum wages than the federal minimum wage, because of the lack of action by congress. The supporters of the raising of the federal minimum wage have been more vocal lately. This is especially true since studies have shown, that the gap has grown between the wealthier population, and the middle class.
Recently President Obama, because of the lack of effort and action by congress, has used executive action to implement the raising of the federal minimum wage to $10.10 an hour for new federal contracts, effective 2015. This, naturally, has brought out commentary, studies that support and oppose this, as well as predictions that are totally opposite of each other. (Davis, S.)
The non-partisan Congressional Budget Office (CBO) examined the impact of raising the minimum wage to two levels, $9.00 and $10.00 an hour. On February 18, 2013 the CBO report concluded that at $9.00 300,000 workers’ wages would rise over the poverty line; however 100,000 jobs would be eliminated by employers to maintain profitability. The impact of a $10.10 an hour minimum wage on these numbers would be 900,000 workers moving above the poverty line while 500,000 jobs would be eliminated. Numerically this seems to support the lower wage. The spokesman for House Speaker John Boehner, a Republican, said, in part “raising the mandatory minimum wage may help some but there are costs associated with this, such as fewer people working”. He also said, the country should be focusing on creating and not destroying jobs. (Davis, S.; Furman, J., and Stevenson, B.)
On February 19, 2014 the White House and congressional Democrats made statements that the CBO report were inconsistent with the views of economists. The Council of Economic Advisers (CEA) said, “Zero is a perfectly reasonable estimate of the impact of the minimum wage on employment”. They further argued, that consideration was taken that rising wages boost productivity and reduce employee migration. It is important to note that the CEA members are appointed by the President, to advise him. Also, worth noting, the Democrats are making the minimum wage an issue they are highlighting in the 2014 elections. Public support for this initiative receives support across all facets of society through various polls, but Republicans oppose raising the minimum wage almost unanimously. (Davis, S.)
The findings in the CBO report have parts highlighted by both sides of the argument, where the data is skewed, or parts are overlooked to provide support of each view. There are two sides to this issue. On the surface things appear simple and the question is how does it affect each of us as individuals? Arguments could be made, and most likely will be made, that branch out and take the focus off of the true issues. I can see arguments for not raising the wage turn into this seen as...

Find Another Essay On Article Rebuttal: Minimum Wage

We Must Increase the Minimum Wage

1534 words - 6 pages minimum wage or not. Many people say they should because everything is getting higher the prices aren’t what they use to be 5 years ago. I was reading an article (Jeff Karoub) which he said “There might be some employment losses but wage gains for those still employed are likely to be larger’’ which I feel is wrong, company’s nowadays don’t care about the people that work for them all they care about is the money and how to make money. And others

Should The Minimum Wage Be Raised?

1761 words - 7 pages economy. Works Cited Berman, Jillian. "$10.10 Minimum Wage Would Actually Create New Jobs: Study." The Huffington Post. TheHuffingtonPost.com, 19 Dec. 2013. Web. 18 Feb. 2014. . "CBO Finds Federal Minimum Wage Increase Could Cost 500,000 Jobs." National Federation of Independent Business. N.p., 15 Jan. 2014. Web. 21 Apr. 2014.

Can The Minimum Wage Force The Hand Of Small Businesses

2206 words - 9 pages they pay all of their employees more than the minimum wage, according to a survey by Sure Payroll, an online payroll service provider for small businessesIncreases in the minimum wage have a widely varying impact on businesses. This is due to the fact that the majority already pays more than minimum wage. An article in Business Week estimated that only 10 percent of the American work force earns within $1 of the minimum wage. For employers that

Government Intervention to Help the Working Poor: There is a Better Option than Raising Minimum Wage

2554 words - 10 pages than the minimum wage. A case study was conducted on the adverse consequences of the minimum wage in the article "NJ And PA Once Again: What Happened To Employment When The PA–NJ Minimum Wage Differential Disappeared?" written by, Saul D. Hoffman and Diane M. Trace. In this article the researchers studied the change of employment numbers of New Jersey and Pennsylvania when the federal government raised the minimum wage in 1996. New Jersey

The Effects of Minimum Wage on Economies: An Analysis of German Minimum Wages

1626 words - 7 pages ://ejd.sagepub.com/content/18/4/347.full.pdf+html, accessed on the 10 January 2014. 11. Fernández-Macías, E./Vacas-Soriano, C. (2013), A Coordinated EU Minimum Wage Policy?, Eurofound, available at http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1306&context=intl, accessed on the 10 January 2014. 12. Finfacts Ireland (2013), Labour costs in Germany 32% higher than EU average in 2012, http://www.finfacts.ie/irishfinancenews/article_1025767.shtml

The Minimum Wage Must Be Raised

2237 words - 9 pages family in need that isn’t going to spend every penny they have to make ends meet. However, with the currently low minimum wage, they lack the ability to spend as much as is needed to help the economy grow. This lack of buying power actually hurts the economy more than people know. An article reports, “Low wage earners cannot participate fully in the economy, thus lowering the overall economic health of their neighborhoods and communities” (Employment

We Should NOT Increase the Minimum Wage

2383 words - 10 pages ” He works as an analyst for the National Employment Law Project, which aims at helping the working class of people. It ends by talking about Obama and his goal of raising the minimum wage to nine dollars an hour, as well as have it follow the consumer index so it would raise periodically Conversely in Arthur Brooks article he stipulates that President Obama neglects the poor. He reasons this by formulating research which he gives that says our

The Federal Minimum Wage

1283 words - 5 pages in all of this? They may be now enjoying an increase in income, but it is not something to celebrate for long, for as our county’s economy continues to recede and the U.S. dollar continues to inflate, it will not be long until $10.10 becomes the new $7.25. Still, supporters of the minimum wage increase seem unable to grasp the true economic components in play. In a pro-wage increase article, Marshall Auerback claimed, “With more family income

Price Control

838 words - 3 pages What would happen to your business if the minimum wage were drastically increased? Could you afford it? What impact would it have on those making more than minimum wage? The questions have been debated for sometime, but recently the debate has intensified because President Obama made a proposal to raise the minimum wage to $9 from its current status of $7.25. Bustamante’s article “$9 minimum wage sounds good but it would be bad public policy

A Minimum Wage Increase Will Stimulate the Economy

1683 words - 7 pages President Franklin Roosevelt endorsed the federal minimum wage law in 1938 while the Great Depression was at its utmost insolvent position. Because at this point in time the economy was at its lowest, the sole purpose for its enactment was to keep the majority of Americans out of poverty and increase consumer demand. Following the 1960’s, the minimum wage has had a very gradual increase to the point where it is now at a standby. At this

The Benefits of Raising the Federal Minimum Wage

1718 words - 7 pages the effects of raising the federal minimum wage, the effects of state minimum wage raises are comparable as well. In his article “The Impact of State Minimum Wages on Child Poverty in Female-Headed Families”, Robert H. DeFina writes that “higher state minimum wages reduce poverty among children”. DeFina addresses variables such as past poverty thresholds and policy decisions, and finds empirical data linking higher state wages to lower child

Similar Essays

Why We Should Raise The Minimum Wage

1198 words - 5 pages predictions forecasting high unemployment rates, increased in goods, and demand more skilled workers. In addition to the rebuttal for the weaker argument at hand. There will always be skeptical people, and we believe they are just as worried about economic health as we are. Distributing the money back in the hands of people who need it most is what it will take to fuel the economy.Work Cited"Top 5 Reasons Why Raising the Minimum Wage Is Good for You and

Raising The Minimum Wage Essay

1144 words - 5 pages been made on his behalf. So congress needs to raise the minimum wage in order to help the general well being of the people. Minimum wage is the least amount of money than an employer can pay its workers per hour. For example, the minimum wage in Virginia is $7.25 per hour. Ford points out in his article on raising the minimum wage, “The minimum wage rose to $5.85 in the summer of 2007 and to $6.55 in the summer of 2008 with plans for a final

Pros And Cons Of Raising The Minimum Wage

1322 words - 5 pages able to higher on new workers as they need them? This is one of the concerns of many in regards to the minimum wage increase. In Sanja Blazevic’s article, “Is Employment Decreasing Due to Minimum Wage Increase?”, Sanja explains that many economists believe that a minimum wage increase causes most age groups of minimum wage workers to suffer. This is caused by jobs becoming more scarce after employers want to employ fewer people since they are

War On Wages Essay

1575 words - 6 pages wage for a day’s works to support their families and make ends meet, and he supports the Harkin/Miller bill that accomplishes this important goal” (qtd in Jamieson). Left wing economist Heidi Shierholtz agrees completely. In her article published to the Economic Policy Institute, she states that, “[I]f the minimum wage bill had kept with growing inflation, the wage would be above $10 an hour and possibly reaching $19” (qtd in Shierholtz). Of