Why Minimum Wage is Not the Option

Categories: Minimum Wage

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Minimum wage laws are in place to protect workers from getting exploited, in other words, these laws were put in place to stop companies or businesses from working their employees too hard and paying them too little. So little in fact that sometimes employees have to live off food stamps, or public housing, (like mentioned in your video).

But by watching your video and based on my research, I believe, that these laws have not succeeded in preventing exploitation and just simply raising the price will do no good.

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Some issues with raising the minimum wage is that, companies big or small, who were willing to hire, can’t hire any more employees because of raised wages.

Minimum wage laws were first put in place in 1938, post depression. Under the Fair Labor Standards Act. These laws were created (along with many others) to prevent another possible depression. But in our society today, I believe that our economy is doing just fine.

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And with already high minimum wages, raising it to upwards of 15 to 20 dollars is outrageous. Partly because raising the minimum wage will not actually help poor people. The reason, according an article on conservativereform.com, states that,”nearly half are under the age of 25, 64 percent have never been married (only 24 percent are married with the spouse present), and the majority work less than 35 hours a week.”, so raising the minimum wage would not actually help poor people. Also you have to take in account that the majority of minimum wage workers are young adults that live in a middle class family, and are looking for some extra money on the side.

But, there might be a possible solution to this controversy.

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Based on a article I read, one of many solutions is for the government to offer training programs. A large portion of the argument to not raising the wage, is that “ if the pay rate of low-skilled and entry-level jobs is too high, workers don't have an incentive to leave these jobs for better opportunities that pay higher wages” (Mathews, work.chiron.com). But with this training it makes possible employees more valuable and less exploitable. Raising the wage is just not the best solution.

Another option, which is popular amongst the argument against raising the wage, is to expand on the EITC (Earned Income Tax Credit). Expanding the EITC would mean, Expanding the EITC for childless adults, eliminating the marriage penalty, allowing EITC to be earned on a regular basis instead of one big paycheck the whole year. Right now theses limitations don’t allow for the optimal payment to these people, but by expanding the range, or getting rid of penalties, it would get these people off food stamps.

A third option, is to reduce taxes for small businesses. As stated before, if the wage increases, then small businesses couldn’t be able to hire employees, therefore, there would be more people living off food stamps and public housing. But if the government reduces taxes for small businesses, they could hire more, less experienced workers, and give them a chance to get promoted, instead of raising the wage, and laying off more employees.

In conclusion, raising the minimum wage has some benefits but, the consequences far outway the benefits. For instance it would only benefit those already working, and even those people might be fired because small businesses couldn’t afford to have so many people and so high wages. That's why I believe raised wages won't stop exploitation, won't get people off food stamps, and lastly it will only benefit people that are already working, not poor people who need to work and get the money the so desperately need.