should minimum wage be raised?
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| When | Why |
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| Nov-02-18 | to compare them |
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Should the Minimum Wage be Raised?
Since 1938, when the minimum wage was first introduced (at a rate of $0.25 an hour), the federal minimum wage has increased 22 times. The minimum wage is the salary floor, or the lowest possible rate that employers can pay employees.
The most recent update to the federal minimum wage was in 2009, when it was raised to $7.25 an hour. Currently, 29 states and the District of Columbia have a higher minimum wage than the federal rate. As of July 2017, 27 cities had also passed laws raising the minimum wage – although some states subsequently passed legislation requiring cities to adhere to statewide minimums.
When the state and federal minimum wage are different amounts, employees are entitled to the higher rate of the two.
Whether or not the federal minimum wage should be raised again — and if so, to what hourly rate — is the topic of considerable debate and controversy.
Opponents believe that increases to the minimum wage will place a burden on employers, especially small companies, resulting in slower growth and decreased levels of employment. Proponents of an increase in the rate say that the minimum wage has not kept up with inflation and that many minimum wage workers are impoverished.
People on both sides of the issue point to economic studies and data to back up their viewpoint. Many Americans, however, have already made up their minds on the issue: A 2015 CBS/New York Times survey found that 71 percent of Americans favored an increase to the minimum wage to $10.10/hour.
Here is a summary of the pros and cons of raising the minimum wage.
- An increase in the minimum wage raises the standard of living for impoverished workers.
- The minimum wage hasn't kept up with inflation. As a result, the pay of many workers, particularly those with families of three or more people, are now well below the poverty level.
- Studies show graduated increases in the minimum wage have a low impact on unemployment.
- Additional income would be spent by consumers and would ripple through the economy if overall budgets for salary grew under a gradual increase in the minimum wage scenario.
- Increasing the minimum wage could help reduce gender- and race-based income inequality.
- Government expenses for social programs aimed at the poor would potentially be reduced. This might result in slightly lower taxes for other Americans.
- Slightly more revenue for the government would be generated from payroll taxes for social security.
- In companies with a fixed compensation budget, an increase to the minimum wage could result in layoffs or slower hiring.
- Employers might hire fewer workers in the entry-level jobs needed to begin a career.
- An increase to the minimum wage would provide an incentive for employers to invest in automated processes, technology, and machinery to increase productivity rather than human resources.
- Raises the incentive for companies to outsource labor to countries where minimum wage rates are lower.
- A higher minimum wage could result in an increase of the high school dropout rate.
- Prices might be increased to offset higher labor costs.
- For small companies, already stressed owner/operators might take on more responsibility.
- Wages for higher paid workers might be suppressed, and salary increases might be lower for those not impacted by a higher minimum wage.
Even though the federal minimum wage hasn't increased since 2009, the majority of states have a higher minimum wage than required by the federal government. In addition, some local municipalities have initiated minimum wage increases for their location. For instance, San Francisco's minimum wage is higher than the state of California's minimum wage. (And, in turn, California's minimum wage is higher than the federal minimum wage).
Added November 02, 2018 at 2:09pm
by student justice
Title: to compare them
Business groups oppose minimum wage increases
By Chris Bosak
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A rally is held in Danbury, Conn. Wednesday, April 15, 2015, at the Danbury Library courtyard, in support of the Global Mobilization of Underpaid Workers Today.A rally is held in Danbury, Conn. Wednesday, April 15, 2015, at the Danbury Library courtyard, in support of the Global Mobilization of Underpaid Workers Today.Photo: Carol Kaliff / Carol Kaliff
Photo: Carol Kaliff / Carol Kaliff
A rally is held in Danbury, Conn. Wednesday, April 15, 2015, at the Danbury Library courtyard, in support of the Global Mobilization of Underpaid Workers Today.
A rally is held in Danbury, Conn. Wednesday, April 15, 2015, at the Danbury Library courtyard, in support of the Global Mobilization of Underpaid Workers Today.
Photo: Carol Kaliff / Carol Kaliff
DANBURY — Raising the state minimum wage to $15 per hour would hurt businesses and fly in the face of the original intent of the wage provision, according to a letter signed by three state chambers of commerce and sent to 30 state legislators.
in the sentence it argues that raising the minimum wage to $15 dollars an hour would damage the economy
The Danbury, Milford and Northwest chambers of commerce urged the legislators to oppose SB13, which would raise the state’s minimum wage to $15 per hour by 2020. Connecticut’s current minimum wage is $10.10 per hour. The U.S. minimum wage is $7.25.
SB13, co-sponsored by five Democratic state senators, would raise the state’s minimum wage to $11 per hour in 2018 and increase the wage by one dollar per hour each year until 2022. In 2014, state legislators approved an incremental increase to make the minimum wage $10.10 by 2017.
The letter also urged legislators to oppose SB1, which would create a paid family and medical leave system.
“Connecticut is facing a massive budget deficit and extraordinary unfunded liabilities,” the letter reads in part. “The likely solution of any combination of spending cuts or revenue increases cannot positively affect our members, their employees and our communities.”
The letter was signed by Steven Bull, president of the Greater Danbury Chamber of Commerce; Gary Mullin, executive director of the Milford Chamber of Commerce; and JoAnn Ryan, president and CEO of the Northwest Connecticut Chamber of Commerce.
State Rep. Bob Godfrey, D-Danbury, is a co-sponsor of SB1 and SB 13. He said he hadn’t seen the letter as of Monday afternoon as snow has prevented him from getting to Hartford.
He said raising the minimum wage would help the overall economy.
“Trickle down never works. Trickle up does when you start to pay people more money,” Godfrey said. “The economy moves when money turns over. When the super rich have money, they store it away. It’s insane to think the same old way of thinking will work.”
In April, about 40 advocates marched at Danbury Library in the “Danbury Rising” rally that supported the $15 minimum wage level.
Bull said the letter was not intended to sound unsympathetic toward low-wage workers. Minimum wage, he said, was originally intended to be a working or entry-level wage, not a living wage for families.
“In a perfect world, everybody would be in favor of these things, of course,” Bull said. “But given our financial situation this is not the time to saddle our employers with another mandate. It’s very anti-business and we don’t need that now. We want businesses to come here and stay here. Do we really want fewer jobs and fewer people working?”
Bull added that the bills would disproportionately affect small businesses and nonprofits as they are the ones that typically pay minimum wage.
I agree with this statement even though i don’t agree with the whole article. I believe that the raise would indeed affect small businesses the most.
“While most of our members are sympathetic to the issues, from a business perspective they are looking at huge increases by bringing them up to that point, which also brings those making more than minimum wage up even further. That’s a real challenge,” Ryan said. “It becomes unaffordable to do business. It’s a touchy, tough situation, but from a business view point, companies simply can afford it.”
The Connecticut Business & Industry Association, the state’s largest business group, also opposed SB13, claiming it will create further job stagnation.
Fil Cerminara of Danbury’s F&M Electric said his industry typically pays more than minimum wage, but he is concerned that the government wants to mandate raises for workers.
I think this article brings up really good concerns of the people, not what the government is concerned about, it is what the people are concerned about
“They (government) have their hand in one pocket already and now they want to get a hand in the other pocket. It’s a continuing non-friendly way of doing things,” Cerminara said. “Employers are on a budget so they will have to either cut employees or cut hours.”
The state Labor and Public Employees Committee will hold a public hearing to discuss several proposed bills, including SB1 and SB13, at 2 p.m. on Thursday in Room 2E of the Legislative Office Building in Hartford.
[email protected]; 203-731-3338
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