The Minimum Wage Should Not Be Increased :: Argumentative Persuasive Essays

The minimum wage is something that F.D.R. put in place a long time ago during the Great Depression. I dont think it worked then. It didnt assoil any problems then and it hasnt solved any problems in 50 years.-- John Raese The minimum wage in the United States was established under the Fair elbow grease Standards Act of 1938 in an effort to stabilize the economy following the Great Depression. It was designed to create a minimum standard of living by ensuring that workers could furnish for the health and well being of their families. With its passage workers were legally ensured that they would receive a minimum of 25 cents for each hour worked. With each increase of the minimum assume rate ($7.75 today) there has been an increase level of debate. Such discussions have resurfaced again as the country attempts to deal with the touch of the Great Recession of 2008. Economists generally chequer that minimum wage increases do not affect national employment significantly. However th e size of an increase can have a dramatic impact on the employment of segments of the population, GDP, toll of goods, and other measurements of productivity. From an economic perspective, mandated wages negatively impact society in the long run (all other variables being held constant) wherefore we recommend that other policy measures be considered to narrow the inequality gap in our country. A review of the supply and demand curve provides the simplest explanation for our recommendation. A minimum wage is essentially a price floor for labor. If this floor is set above the current market price as would be the nerve with an increase in minimum wage - the demand for workers will be reduced while the supply of workers will increase. As illustrated below the result would get hold of to increased unemployment. http//notatthedinnertable.weebly.com/uploads/3/4/1/1/3411210/5183225_orig.pngFirms will retain more productive and higher paid workers, however lower skilled and lesser paid (those you intend to assist) will be shed. Those who lose their job will then require government benefits, such as unemployment compensation and welfare, to survive olibanum increasing government expenditures and debt. In the event that a firm does not fire workers the cost of the additional wages must be addressed. Typically the increased cost of doing business can be managed in two ways. The firm will transfer the increased cost to consumers by raising the selling price of its goods or