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Does the Minimum Wage Kill Jobs?

Author: Bryce Covert

Works Cited COVERT, BRYCE. “Does the Minimum Wage Kill Jobs?” Nation, vol. 299, no. 17, Oct. 2014, p. 5. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&db=aph&AN=98779572&site=ehost-live.


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Throw a rock into the punditsphere and you’ll hit someone arguing that minimum-wage increases kill jobs. We shouldn’t boost the wage, these people argue, because companies will hire fewer of the lowestpaid workers—the very workers who are supposed to be helped. Meanwhile, social movements like Fight for 15 demand a higher minimum wage in order to raise the living standards of these workers. To a degree, the relationship between the minimum wage and employment is still debated among economists. When thirty-eight of them were polled last year, they were split as to whether a $9 hourly wage would cost jobs, with about a quarter unable to say one way or another. The debate pits the Congressional Budget Office, which found that a $10.10 wage would reduce employment by 0.3 percent, against economists like David Cooper, who found that a higher minimum wage would support the creation of 85,000 new jobs. So which is it: Does raising the minimum wage boost living standards for workers, or does it kill jobs for those who need them most? Taking stock of all the conflicting research on the topic suggests the former: employment is unlikely to suffer from a higher wage. In 2009, Hristos Doucouliagos and T.D. Stanley published a paper that reviewed sixty-four studies and found that when the studies’ findings were averaged out, the impact of raising the minimum wage on employment was close to zero. Also, the most statistically precise studies were the likeliest to find no impact. Increasing the wage by 10 percent could reduce employment by a mere 0.1 percent. Critics suggest that employers of lowincome workers will replace them with machines if their labor becomes more costly. But in the real world, businesses are run by human beings who make a range of choices. Bosses often respond to higher labor costs not by cutting workers, but by requiring workers to be more efficient. They may reduce bonuses for higher-paid employees. They could pass the cost on to customers through higher prices, although a review of academic papers found that a 10 percent wage increase raised prices by no more than 0.4 percent. Most important, employers are likely to find that a higher wage reduces costly job turnover among trained workers. Higher wages also put more money into workers’ pockets —to the tune of some $30 billion—which would then be spent at these businesses. Real-world evidence is reassuring. In 2010, three economists looked at 1,381 counties over sixteen years, finding that minimum-wage hikes had no effect on employment. Other economists looked at every state-level minimum-wage increase over twenty-five years at times when unemployment was already high and found no evidence of an effect on job creation. Yet another group looked at the effect of state-level increases on teenagers— canaries in the coal mine of low-skilled employment—and found zero impact on their jobs. Even this year, the thirteen states that raised their minimum wages on January 1 have experienced higher employment growth than those that didn’t. Washington, the state that has boasted the highest minimum wage for fifteen years, had a job-growth rate 0.3 percentage points above the national rate. It’s impossible to draw a clear line of causation from a higher minimum wage to job growth, but the hikes clearly did not torpedo local economies. Across the board, there’s little reason to think that a higher wage would decimate job growth and good reason to think it could give the economy—and workers—a boost. Bryce Covert Myth: The minimum wage is a living wage. Reality: One fulltime minimumwage job used to be able to keep a family of three above the poverty line. Now it can’t keep a single parent above the poverty line. Myth: Mostly teenagers in short-term jobs make the minimum wage. Reality: Nearly 90 percent of the workers who would be affected by a minimum-wage hike are older than 20, and 28 percent of them are parents. Myth: Minimumwage jobs like fast food are just entry points to betterpaid careers. Reality: In the minimum-wage fast-food industry, there are far fewer managerial positions to move into than in other industries, and few franchise ownership opportunities. HALF-FULL: Ten states have passed minimum-wage increases this year, five above $10 an hour. THE SCORE/ MIKE KONCZAL + BRYCE COVERT THE GLASS IS... T H E SCORECARD HALF-EMPTY: Congressional Republicans have blocked a federal minimumwage increase three times over the past three years despite supporting one under President George W. Bush. GRAPHIC: CHELSEA LEE Washington 2.10 -1 -0.5 0 0.5 1 1.5 2 2.5 Rhode Island 1.28 Florida 1.56 Oregon 1.68 Colorado 1.79 Missouri 1.16 Ohio 1.16 Arizona 0.91 Montana 0.78 New York 0.54 Vermont 0.35 Connecticut 0.11 New Jersey -0.56 PERCENTAGE CHANGE IN EMPLOYMENT: AUG.–DEC. 2013 TO JAN.–MAY 2014 13 STATES THAT RAISED THE MINIMUM WAGE IN 2014 PERCENTAGE CHANGE IN EMPLOYMENT IN STATES THAT RAISED THE MINIMUM WAGE Source: Bureau of Labor Statistics Does the Minimum Wage Kill Jobs? Copyright of Nation is the property of Nation Company, L. P. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.

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Aug 25
Luis Campas (Aug 25 2021 4:02PM) : . more

Wealthier earners causes money to be put back into the economy

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Aug 25
Jamela Abdulkadir (Aug 25 2021 4:09PM) : Raising the minimum wage would increase the cost of employing low-wage workers.
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Aug 27
Alyssa Pacheco (Aug 27 2021 1:23PM) : . more

I think this does need to change because the hard workers need more money to feed their families.

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Sep 10
Javier Ochoa (Sep 10 2021 1:13PM) : thay do need more mony more

thay need more done for them cus thay work so harde for there falmys

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Aug 27
Victoria Varela (Aug 27 2021 3:24PM) : Raising the minimum wage would increase the cost of employing low-wage workers.
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Aug 30
Luis Acosta (Aug 30 2021 1:03PM) : My opinion more

People with more money put money back into the economy

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Sep 3
Adriell Hurtado (Sep 03 2021 12:03PM) : Althoughit oes seem nice to have peole be paid 15$ an hour althoug with the minimum wage being increased the prices of things have a large chance of increasing the prices of things making things more expensive and those making the same amount suffer.
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Sep 3
Saul Arias (Sep 03 2021 2:37PM) : raising the minimum wage would increase the number of workers also there jobs arent easy so why shouldnt they get more pay
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Sep 3
Aurora Guerrero (Sep 03 2021 2:38PM) : . more

i think this does need to change because works already work hard enough to bring money back to there family but yet don’t get paid enough money.

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Sep 3
Angel Monge (Sep 03 2021 6:19PM) : i think it need to change to because it un far. more

its un far because how you going to wake up evry morning and go to work for you not to get paid what you are suppose to be getting.

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Sep 3
Jeffry Cota Fabela (Sep 03 2021 3:56PM) : Raising minium wage would increased empolys cost for low wage worker more

i think it should change because people need more money to pay for bills or get money for cancer

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Sep 10
Cesar Echeverria (Sep 10 2021 11:49AM) : . more

i think the minimum wage kills jobs because people arent gonna want to work hard for a little bit of money

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Sep 10
Said Cazares (Sep 10 2021 11:55AM) : minimum wage more

people these days want to earn more money and the minimum money 10.10 is little and decreases the employees of every job, Jobs with higher wage gets more employees.

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Sep 10
Ariana Navarro (Sep 10 2021 1:13PM) : i mean it's suck that people don't get payed a lot and how are they going afforded enough food for their family or there self
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Sep 10
Karla Hernandez (Sep 10 2021 2:13PM) : more money more people more

the more money they get the more people want to work and more people work harder its unfair for people that worked at a place for so long and get payed less

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Sep 17
Brianna Ferrer (Sep 17 2021 1:48PM) : I agree more

Its means seeing that people dont get payed enough, when they wake up every morning to go to work so they can get a littel of money. Some people have to afforded food, pay rent and buy food or clothes for their family.

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Sep 10
Orlando Gonzalez II (Sep 10 2021 1:40PM) : now comment week 5 Minimum wage kill jobs? more

The minimum wage is obviously not what everyone wants but the minimum wage does not kill jobs since the minimum wage is being raised prices are being raised and how much you earn is being raised it just a cycle that people follow. People want the minimum wage to be raised but then complain when the prices get raised people just want things that benefit themselves they dont think about the bigger picture.

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Sep 10
Janissa Baca (Sep 10 2021 4:59PM) : . more

I think this should change because some jobs are harder than others and they still get paid minimum wage.

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Sep 10
Ashley Rodriguez Sainz (Sep 10 2021 5:04PM) : They need more money more

they need more done for them because they work so hard.

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Sep 10
Cesar Pena Jr (Sep 10 2021 10:16PM) : dose it kill job more

Yes it kills jobs because people are going to stop working and its going to shut down so yeah it kills jobs

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Sep 17
Aaron Garcia (Sep 17 2021 12:01PM) : jobs more

minimum wage jobs decrease the amount of jobs

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Sep 17
Iliana Maes (Sep 17 2021 12:02PM) : I think minimum wage kills jobs because your not going to pay the person minimum wage if the person is working hard, they should get paid more than what minimum wage is.
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Sep 17
Mario Gutierrez-Garcia (Sep 17 2021 12:24PM) : I agree to change.they need higher wages more

I think that it should change because workers are working so hard and just for a few money they should get paid more because its not fair

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Sep 17
Melany Arellano Montes (Sep 17 2021 12:30PM) : Jobs more

They should get paid more than minimum wage is minimum wage also decrease the amount of jobs

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Sep 17
Brianna Barrios Corrales (Sep 17 2021 12:30PM) : I think it is important for people to earn more money because most of them don't win the money they are supposed to be winning.
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Sep 17
Destiny Candelario Lopez (Sep 17 2021 12:34PM) : i think they should higher the pay because people have to feed there families and have to pay bills and it dose cost more then what they get paid every 2 weeks
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Sep 17
Camila Reyes Villalba (Sep 17 2021 12:42PM) : Some peoplel wor so much more than what the minimun wage they earn
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Sep 17
Aubrianna Lopez (Sep 17 2021 1:09PM) : In my imp ion i think they should get paid more for there hard work
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Sep 17
Arturo Alatorre Fuentes (Sep 17 2021 1:27PM) : he debate pits the Congressional Budget Office, which found that a $10.10 wage would reduce employment by 0.3 percent, against economists like David Cooper, who found that a higher minimum wage would support the creation of 85,000 new jobs. more

l think that has to change because they also have expenses and have to support a family,and compared to what they re doing,they will not be able to do anything because they will not have a job.

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Sep 17
joseph magana (Sep 17 2021 1:42PM) : i think it does more

i think it does because it would not help jobs and they would worsen the jobs

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Sep 17
Mabel Espinoza (Sep 17 2021 1:45PM) : People need money more

They start working at a young age to gain money. And they should star paying more.

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Sep 17
Sixto Siqueiros (Sep 17 2021 1:51PM) : but in the real world businesses are run by human being who make a range of choices
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Sep 17
Brianna Ferrer (Sep 17 2021 1:52PM) : Wage Job more

Its hard to see that people dont get enough money when they work every day to try to porvaid for their family and pay rent. Also, if people see that a job is paying a littel for like a 10 hours people will drop out of that job and people will have to look for more people that will take that money.

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Sep 17
Daniel Anaya Jr (Sep 17 2021 3:00PM) : In one corner raising the minimum wage to something as low $10.10 would reduce employment by 0.3% but in another corner it states that it would open up as many as 85,000 jobs so it is currently conflicted at the moment
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Sep 23
Lluvia Natalya Bernal Valenzuela (Sep 23 2021 6:10PM) : Throw a rock into the punditsphere and you’ll hit someone arguing that minimum-wage increases kill jobs.
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Sep 23
Francisco Lugo Enriquez (Sep 23 2021 6:15PM) : Meanwhile social movements like Fight for 15 demand a higher minimum wage in order to raise the living standards of these workers.
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Sep 24
Erick Andres Castro Moreno (Sep 24 2021 1:23PM) : The truth is that the pussy salary is not fair to me because there are people who strive every day to be better at their job
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Sep 24
Isaac Medina Sanchez (Sep 24 2021 2:20PM) : it will make more people wanna work more

yes raising the wage will increase more people to work. and would increase the employing low-wage workers

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Sep 24
Albert Carranza (Sep 24 2021 2:47PM) : In my imp ion i think they should get paid more for there hard work
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Sep 24
Nathalia Velasquez (Sep 24 2021 3:09PM) : . more

It will be better if it changes because some people work as hard but get paid less

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Sep 24
Jeanece Cruz Lopez (Sep 24 2021 3:22PM) : Meanwhile, social movements like Fight for 15 demand a higher minimum wage in order to raise the living standards of these workers.
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Sep 24
Joey Sanchez (Sep 24 2021 3:27PM) : raising the minimum wage would increase the cost of low wage-workers
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Sep 24
Erika De La Paz-Orozco (Sep 24 2021 5:06PM) : it depends what they work for like the work they do and how much the payment should be
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Sep 25
Marcos Garcia Molina (Sep 25 2021 1:29PM) : People want the minimum wage to be raised but then complain when the prices get raised people just want things that benefit themselves they dont think about the bigger picture.
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Sep 25
Jesus Hernandez (Sep 25 2021 1:51PM) : why boost the wage more

Why would people get argue and why boost the wage.

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Sep 27
Naithen Shade (Sep 27 2021 11:59AM) : Its Good If They Do more

If they raise the minimum wage, it would increase employ low-wage workers, which would be very good and could help them in their life.

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Sep 28
Oscar Sandoval (Sep 28 2021 2:29AM) : I think it should change for those people who work a lot and pay little. more

I think this should change because many work a lot and with little pay and most have to feed their families and sometimes they do not have enough or many times they do not eat or eat little.

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Sep 29
Isella Marquez (Sep 29 2021 1:35PM) : . more

they need money to support them self and their family

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Oct 7
Carina Grajeda (Oct 07 2021 2:26PM) : Raising the minimum wage would probably increase the cost of employing low-wage workers.
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Oct 28
Jaqueline Payan Villegas (Oct 28 2021 5:34PM) : week 2 more

Hard work effort could give more money to hard workers for their family

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Oct 29
Jaqueline Payan Villegas (Oct 29 2021 1:43AM) : in my opinion i feel like they should start paying them more because there is many reasons why they are working,to feed their families and many more.
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Sep 17
Damiana Buelna (Sep 17 2021 2:54PM) : n more

Raising the Minimum Wage Doesn’t Kill Jobs? It “rights” asserts that if a firm has to pay higher wages, it either raises prices and sells less, or keeps prices the same; in either case, it lays off workers

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Sep 10
Scarlett Soto Acuna (Sep 10 2021 1:02PM) : i think that it isnt enought the amount of money they get because the people have to pay bills and if they have a family they have to take care of them too.
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Feb 7
Alysa Gribben (Feb 07 2020 12:00AM) : The hope for a change with minimum wage, might not have a large effect.
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Aug 13
Omar Ruiz (Aug 13 2021 12:27PM) : I think it does make a change because minimum you will get money but for but those 400 or 500 dollars won't be enough to pay bills.
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Aug 20
Omar Ruiz (Aug 20 2021 12:27PM) : I think minimum wage does kill jobs because your not paying the person that much money when they can have a family to feed. If the person is working hard he should get paid more than what minimum wage is. [Edited] more

I just don’t think it is right if the person is working hard and not getting paid the way he should. I think he should get paid ike the other people that work full time in a work job. But they start to get paid more and they don’t work as hard as they use too then put the people back down to minimum wage.

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Aug 22
Deserae Romero (Aug 22 2021 4:34AM) : i think more

that minimum wadge jobs do kill people minimum wade last year was 9.00 and with just a dollar more difference it reduce 3 percent of employment. The congressional budget office found that 0.3 percent would reduce against an economist like David cooper who found higher wadges who would support 85,000 new job employers

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Aug 27
Michael Fisch (Aug 27 2021 11:57AM) : I think it does need a change of minimum because bills wont be able to be payed (depends where you live in).
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Sep 10
Giselle Sierra (Sep 10 2021 11:48AM) : more people want the to work and earn money in the argue
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Feb 7
Alysa Gribben (Feb 07 2020 12:01AM) : Wealthier earners causes money to be put back into the economy
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Aug 13
Omar Ruiz (Aug 13 2021 12:30PM) : I think that is because they make a lot of money so some money will go back into the economy.
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Aug 17
alessandra miranda (Aug 17 2021 12:33PM) : if they pay the workers more they might be worried that other business might get more money. more

reading this sentence tells me that employers don’t want to give workers more money because they are worried that the employees will spend their money on companies that they are working against and that company will make more money than them.

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Aug 17
Aile Guillen (Aug 17 2021 12:37PM) : they should not increase the wage. more

They should not increase the wage because some people have money to barely pay their stuff and to have more money to pay that’s not a good thing

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Feb 7
Alysa Gribben (Feb 07 2020 12:02AM) : More people want to work and earn money
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Aug 13
Omar Ruiz (Aug 13 2021 12:28PM) : They do want to work more because some people have a family they need to feed and keep a roof over their head. So of course they want to work to ear more money.
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Aug 30
Valentin Encinas Vasquez (Aug 30 2021 7:52PM) : higher pay more

this shows that higher pay causes people to work harder

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DMU Timestamp: February 03, 2020 23:30

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Aug 20
Ramon Valenzuela Ozuna (Aug 20 2021 3:38PM) : minimum wage does not kill Jobs more

Minimum wage does not kill jobs because It Boosts Productivity and It rightly asserts that if a firm has to pay higher wages, it either raises prices and sells less or keeps prices the same; in either case, it lays off workers.

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Aug 20
Victoria Varela (Aug 20 2021 3:47PM) : their jobs. Even this year, the thirteen states that raised their minimum wages on January 1 have experienced higher employment growth than those that did more

e shouldn’t boost the wage, these people argue, because companies will hire fewer of the lowestpaid workers—the very workers who are su

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Aug 27
Saida Tasir (Aug 27 2021 11:59AM) : I think minimum wage does kill jobs cause people may quit cause they dont get paid well. Also people that have family will need more then just minimum wage they need to pay bills and buy there children clothes they sometimes will get raises. [Edited]
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Sep 22
Brianna Villarreal Lopez (Sep 22 2021 12:40AM) : Minimum wage does not certainly kill jobs. [Edited] more

Yes, the minimum wage is a living wage, but minimum-wage jobs like fast food places are just entry points to a better paying career. Minimum wage leads to a boost in productivity and the workers. If you attend a job were you are hardworking but still get payed minimum wage then yes that is not fair because all that hard work you put on is only giving you a low range of wage. If you attend a fast food place or market then you will get payed a lower range since its the start to your high paying career, but getting paid a low range when working absolutely hard is unfair due to the effort you put on but I do not think it certainly kills job.

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