Minimum wage and Poverty Essay

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Poverty is a significant topic that is being investigated, talked about and most importantly lived in by millions in America. Many American citizens, specifically the children are not only living in poverty, but they are living below the poverty line due to low minimum wage (Gidfar). A child living in poverty can face serious problems in the future. Reducing poverty should not be charity work. As citizens of the world it should be a social responsibility to find a way in which poverty can no longer be a living status, especially for a developed country like America. It is one of the top countries before Mexico with the highest rate of child poverty (Gidfar). In context, minimum wage has a large impact on poverty within a country, as the higher the minimum wage the more disposable income families have access to. The discussion of how the “elasticity of demand of unskilled workers” determines whether or not the minimum wage should be raised to reduce child poverty is essential when validating the relationship between the two variables (Rutkowski 7). While the analysis of William Even and David Macpherson’s study emphasizes the importance of taking employment in to account as a variable as an indication to prevent ‘job loss’ (2), through the clarification that although the United States view child poverty as being an “intractable problem"(WaldFogel 3), there is evidence to support that a raise in the disposable income of families can lead to reduction in child poverty (Dahl and Lochner 24) as Nora. C Lustig and Darryl Mcleod have also pointed out through the ‘inversely related’ relationship (63). The illustration of these studies validates that a raise in the wage is most likely not going to reduce poverty all around America, but it can possibly lift the poor children from living below the poverty line, providing their families with more disposable income, which will enable them to a brighter future.

Families with low disposable income can be facing lots of stress, depression and health issues, particularly the ones living below the poverty line. This can potentially drive children into poverty. America has the highest rates of child poverty, with over “16 million children” living in or below the poverty line (Watson). There are many factors that can initiate an increase in child poverty. Not having access to basic needs in life stems from low wages and the elasticity of demand for workers. Reasons like these illustrate why an increase in the minimum wage is crucial to restrict infants from falling in to poverty. In hopes of reducing poverty and income inequality to allow more families within the country the opportunity of an “American Dream”, The White House validities this promise by illustrating that Barack Obama is to raise the hourly minimum wage of $7.25 to $ 9.00. Scholars Lustig and Mcleod support The White House’s promise, as the relationship between the two variables is perceived to be ‘inversely proportional’, although they argue that...

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