IS RAISING THE MINIMUM WAGE A GOOD IDEA? (Essay Sample)

Minimum Wage
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IS RAISING THE MINIMUM WAGE A GOOD IDEA?
Introduction
Minimum wage is the payment that an employer must pay working people for labor completed during a specific period, which cannot be reduced by collective bargaining or individual contracts. Debates for and against a federally mandated minimum wage have gotten a lot of airtime in the national political debate. For many years, the argument over minimum wage has centered on the implications of implementing and increasing base pay on the labor supply. On the other hand, opponents of the minimum wage usually focus on its potentially detrimental impact on employment (Leonard, 2000).
This paper will explore whether raising the minimum wage rate by the federal government is a good idea. Consequently, it will present an opposing argument to indicate that raising the minimum age is not a good idea. An analysis of both views will be presented before the paper concludes with my discussion of the topic.
Argument that raising minimum age is good
Many scholars have researched to ascertain the viability that an increase in wages positively influences the economic and social structure, thus upholding a good idea. Some of the results are analyzes and summarized as follows:
Premise 1: Bauducco and Janiak (2018) assert that the country's economic potential is stimulated by putting money in workers' pockets. The aggregate impacts of minimum wage rises are predicted differently by different methodological approaches. Nonetheless, all calculations point to wage rises, particularly for low-paid workers, as a stimulus source. They conclude that raising the minimum wage is a good concept that will foster a country's economic stability with a higher purchasing society.
Premise 2: The wage rate bump is a good idea as it benefits historically underprivileged persons who do more than their fair share of minimal jobs. According to estimates from the Economic Policy Institute, the hike would affect 27 percent of the total US workforce:
* 39 percent of Black and Latina women would profit (relative to 18% of white men);
* 33 percent of Latino employees would benefit;
* Thirty-two percent of female workers would benefit (relative to 22 percent of men (Romich, 2017).
Premise 3: When corporations fail to pay workers enough wages to make ends meet, they are compelled to seek federal assistance. This implies that taxpayers subsidize corporations. According to the Economic Policy Institute, most public aid clients work or have working kin, intent at the bottom of the income scale. Because of their low wages and dwindling purchasing power, many people who work full-time for minimum wage rely on programs such as Medicaid to care and feed and their family. This means that the national government is funding the labor costs of low-wage businesses while their workers strive to make decent living.
Conclusion: raising the minimum wage is an excellent idea.
Conclusion: increase in the minimum wage is a good ideal
The argument that raising the minimum age is not a good idea
On the other hand, some policymakers propose raising the minimum wage, although this would be counterproductive. According to research, enterprises would respond to higher expenses by cutting jobs, particularly for low-skilled workers. In addition, some establishments may pass on the increased prices to their customers. Notwithstanding proponents' hopes, the minimum wage provides little, if anything, to help people get out of poverty. Many studies have been devoted to proving that increasing minimum wages is not a good idea due to its adverse implications. Some of these scholarly results are analyzes and summarized as follows:
Premise 1: If the post-pandemic economic recovery includes minimum-wage rises in a few or many states, research headed by Washington University in St. Louis Olin Business School scientists predicts some negative repercussions for US employees in the two years following adoption. According to the report, a minimum wage hike is a bad news for new competitors in the labor market. The researchers discovered that enterprises, particularly those that produce tradeable commodities — such as the manufacturing segment – decrease the occurrence of low-wage hiring (Chao et al., 2021).
Premise 2: Increasing minimum wages is likely to cause loss of employment evident from losses indicated since the earliest imposition of the minimum wage.
* The initial minimum wage of 25 cents, implemented in 1938, resulted in considerable job losses.
* • A 2006 assessment by William Wascher and David Neumark of more than 100 minimum wage studies indicated that around two-thirds of them found adverse employment outcomes.
* The latest minimum wage rises in American Samoa had such severe economic consequences that President Obama signed a bill suspending them.
* • In 2010, Richard Burkhauser and Joseph Sabia calculated that raising the federal minimum wage to $9.50 per hour would result in the loss of roughly 1.3 million jobs.
Conclusion: increase in the minimum wage is not worth a venture to be upheld due to its adverse implications.
Premise 3: Minimum wage hike will result in higher prices imposed to consumers; thus, someone has to foot the bill for minimum wage hikes. A 2004 “analysis of more than 20 minimum wage research looking at price effects indicated that a 10 percent rise in the US minimum wage increased food prices by up to 4 percent (Chao et al., 2021). Moreover, Restaurant costs rise in reaction to minimum wage rises, according to a 2007 study by the Federal Reserve Bank of Chicago.
Analysis of the Arguments
Both arguments, as previously stated, include premises that are backed up by extensive academic work. Both views also give compelling evidence for the validity of their claims. Thus, both arguments are inductively strong and appear to have well-supported premises; however, neither is deductively correct. Their conclusions, on the other hand, make opposed points, creating an apparent contradiction. Therefore, making it hard to figure out which of these conclusions is the most likely to be correct?
Additionally, both arguments are based on well-supported premises and sound reasoning. Therefore, it can be tough t