The Minimum-Wage Controversy: Raising the Minimum Wage and the Effect on Economy Essay
The Minimum-Wage Controversy: Raising the Minimum Wage and the Effect on Economy
The Minimum-Wage Controversy: Raising the Minimum Wage and the Effect on Economy Minimum wage jobs are very common to the young people of society. Raising the minimum wage would lead to greater unemployment, lower the profits of firms and businesses, and ultimately stunt the growth of the American economy to a substantial extent. There are many controversial opinions when it comes to raising the minimum wage. Minimum-wage workers do many of the most difficult and most important jobs in our society.
These hard-working people deserve fair pay for their work. In the wealthiest nation in the world, no one who works for a living should have to live in poverty. Raising the minimum wage will put more money in the pockets of workers. On the other hand, raising the minimum wage will make it more expensive for businesses to hire young and low-skill workers at a time of crisis-level unemployment. Many workers would get bigger checks while many workers would have to lose their jobs. There are much better alternatives to help economically challenged families.
The minimum wage is a dishonest approach that hides the true cost of the policy. Americans value hard work. We believe that people who work should be able to build a better life for their families. But today, many Americans are working hard only to stay poor. Raising the minimum wage would raise the incomes of 28 million Americans. Women would particularly benefit because they tend to work for lower wages than men. A higher minimum wage would also help to mitigate the abusive, exploitative working practices of a number of employers, who take advantage of the currently low minimum wage to seek cut-rate help.
To get the economy back on track, spending power has to be in the hands of those who actually spend in the real economy. That means regular people, not the super-wealthy who tend to hoard wealth or invest in financial products. The minimum wage story is not just a story about income inequality, but rather it is about an elite that has hijacked the economic system and made it work less productively than before while redistributing more of what is working to themselves. The problem with our economy today is that the growing gap between the real wages and productivity has violated the traditional relationship between real wages and consumption.
Most of all, a big jump in the minimum wage would be a reparation. Because class warfare has already been undertaken on behalf of the one percent. The past 30 years have witnessed a dramatic redistribution of national and personal income in favor of profits for the rich. At the same time, this period has been associated with a dramatic decline in the performance of the American economy.