Name
Instructor
Course
Date
美国经济代写 The minimum wage has been a debate that has raged the United States for years. The US Census Bureau found that raising
Minimum Wage
Introduction 美国经济代写
The minimum wage has been a debate that has raged the United States for years. The US Census Bureau found that raising the minimum wage increased earning, growth, and increasingly it has been raised with no significant impact on the employment (Dube). The minimum wage is the least amount a citizen of the United States should earn per hour. The question that most have asked is whether the minimum wage is necessary and what will be the economic and social impact. The holistic effect of the minimum wage was to be looked at before imposing his law to the public.
Nevertheless, the minimum wage bill has been enacted in the series of acts and amendment after the other. The debate on setting the minimum hourly pay started in 1938. Since then, in 2009 the minimum wage per hour has been raised to $7.25. There are various reasons why the minim wage should be raised ranging from the social, political, to economic reasons.
Raising the Minimum Wage 美国经济代写
There various that support the raising of minimum wage do not only focus on the individual impact but also the holistic implications of it to the whole country. One of the reasons for the support for the support of a minimum wage is the reduction in poverty level in the United States. A study conducted by Dube shows that an increase in federal minimum wage from $7.25 to $8 will reduce the poverty level by 2.4 percent.美国经济代写
In this line of argument, if the minimum wage increases to $10 per hour, the poverty level in the United States will reduce by 4.6 million. As a result, the number of people living the 10th percentile income bracket will also increase. It is argued that, over time, increase in the minimum wage will result in a cumulative reduction in poverty by 6.8 million people. Logically, paying a hard-working citizen a livable wage is enough to pull them out the desolate living, therefore, raise them to the levels they deserve to live.
Other proponents of a minimum wage raise put forth the argument of the reduction in income inequality. The United State has been ranked the top in the income disparities among its citizens. This is according to the World Inequality Report 2018. The income disparities in the United States is contributed by the extremely low minimum wage threshold (Alvaredo et al., 78). It has been revealed that the full-time minimum wage worker makes about $15, 000 annually. Because of this low earning, most them rely on the government welfare programs which ironically continue to put them at the disadvantage of being dependent.
Moreover,
the minimum wage increase will not only ensure that workers are getting the minimum pay get a better life and freedom to spend and save, but it will also increase the number of the median wage earners in America. Currently, to make ends meet, the majority of workers are forced to work overtime. The increase in the wage will ensure that the gap reduces significantly over time.
It has been established that worker productivity is directly related to wages earned. This is according to the study conducted by CEPR on the productivity of workers relative to their remuneration (Alvaredo et al.). The study used 1968 minimum wage as the benchmark. It is assumed that, if the productivity of the employee determines the minimum wage, the minimum wage by 2012 would have been $21.72 per hour.美国经济代写
A well-paid employee invests his/her energy and skills into the work. Higher remunerations make the employee increase their effort in what they do for the company. As a result, productivity is improved, job turnover, lowered, and less supervision to get workers to perform.
Furthermore,
in support of the rise in minimum wage, some have pointed reward of the boosted economy. A study by EPI, increasing the minimum wage is an indirect boost to the economy. In effect, it increases economic growth and increases jobs. The increase will not only benefit employees but the business and the government. As such, if the wage is raised, in three years the government revenues will be boosted by more than $22 billion. Consequently, the increase of the current wage rate per hour will add $35 billion disposable income which in effect create indirect 85,000 new jobs.
Research conducted by the Bureau of Labor Statistics shows that the hourly paid workers constitute 45 percent of the minimum wage labor force and age between 16 to 24, the rest are full-time workers (Dube). It means that the increase in minimum wage will not only affect the young adults but a whole lot of the population. It also says that those earning minimum wages are mostly adults with children to look after or dependents. Therefore, the increase in pay will ensure that these groups have enough income to take care of themselves, their family, dependents and have some for saving.
Cases Against Raise in Minimum Wage 美国经济代写
The above benefit notwithstanding for the support of raise in minimum wages, there are those who oppose the proposals. They argue that the increase in minimum wage will force businesses to lay off some of its workers thus increasing the level of unemployment. A survey by the Congressional Budget Office projected that the rise in the minimum wage from $7.25 to $10.10 would see America lose 500,000 jobs (Alvaredo et al.). In the study, the 1213 businesses interviewed through their human resource representative and who are already implementing the minimum wage, the general feeling is that, if the minimum wage is increased some of them will lay some workers or reduce the level of hiring.美国经济代写
Another study by San Francisco’s Office of Economic Analysis found that the increase of the minimum wage from the current to $15, it would lead to a reduction in the city employment by 15,270 private jobs. Additionally, according to Hanke, a professor of Applied Economics at the University of Johns Hopkins University, in his study of the 21 European Union countries that use the minimum wage policy, found that they have 10.8 percent unemployment rate higher than the 7.9 percent from those which does apply the minimum wage policy.
Another pessimistic view of the rise in the minimum wage is that it hurt the businesses and can lead to their closure.
A poll by Gallup shows that 60 percent of the SMEs might close their businesses if the minimum wage is raising as it will hurt the business income (Gallup). The vice-president of the food chain White Castle observed that it might close half of its outlets if the minimum wage is increased. Similarly. It is also reported that Wal-Mart had shut several of its stores owing to the expanded wage bill which has hurt its operations.美国经济代写
While other business communities urged against the rise in minimum wage in term of closing their businesses or reducing subsidiaries and laying of the worker, others talked of increasing the prices of goods to keep the company floating. Federal Bank of Chicago wrote that, if the minimum wage is raised, the restaurants will pass the burden to the consumers (Aaronson, French). Another research by the Purdue University found that, if the minimum wages are affected to $10 or $22 per hour, the fast food restaurants will pass 4.3 percent and 25 percent of the cost respectively or they reduce the sizes of their products to reflect the changes in the value of production.
The above and many more arguments have been put forth to challenge the rationality of the minimum wages.
However, most of this sentiment on the minimum wage is based on the subjective opinion of the business community and therefore, it is more of the representation of their interest but not that of the whole public. Most of these research and surveys conducted were skewed on the employer side, who for apparent reason tend to present their interest for profits making. Additionally, the above supports for the rise in the minimum wage supported by empirically proved research which was not biased to look at one side of the wage rate impact. Therefore, it is fair enough to say that, raise in minimum wage is useful not only to the worker’s welfare but also to the whole economy, directly and indirectly, both financially and socially.
Work Cited 美国经济代写
Alvaredo, Facundo, et al., eds. World inequality report 2018. Belknap Press of Harvard University Press, 2018.
Aaronson, Daniel, and Eric, French, “How Does a Federal Minimum Wage Hike Affect Aggregate Household Spending?,” Chicago Fed Letter, Aug. 2013
Bureau of Labor Statistics. Characteristics Of Minimum Wage Workers, 2017. United States Department Of Labor, Washington, DC, 2017. Accessed 6 Dec 2018.
Congressional Budget Office, “The Effects of Minimum-Wage Increase on Employment and Family Income,” cbo.gov, Feb. 2014
Dube, A. (2017). Minimum wages and the distribution of family incomes. IZA Discussion Paper No. 10572.
Gallup. “US Small-Business Owners Split on Raising Minimum Wage,” Gallup.com, Nov. 22, 2013
其他代写：web代写 program代写 cs作业代写 app代写 Programming代写 homework代写 source code代写 考试助攻 Exercise代写 代写CS C++代写 java代写 r代写 finance代写
