Fighting poverty is basically what every human being is doing or in fact trying to do during their lives. In order to keep themselves away from that, people would work in jobs that pay the minimum amount of money while they figure out what might be next. Minimum wage jobs would not help people to stay not poor, in fact they will make sure that they stay poor. Minimum wage jobs usually require the least amount of skill, training and experience. Some parents use these kinds of jobs as a way to raise their teenage children. Minimum wage workers can be easily replaced by somebody for less pay. food preparation and serving workers, including fast food, dishwashers, cashiers, amusement park attendants, farm workers, child care worker and janitor, all of these jobs requires the least amount of training and skills therefor each worker get payed the minimum wage.
For many American workers, minimum-wage jobs are temporary prior to moving on to more suitable jobs. However, according to federal labor statistics, about 70 percent of minimum wage employees, work fewer than 35 hours per week and thus earn respectively less money. Raising the minimum wage will make it more expensive for employers to hire workers there fore a massive unemployment will accrue if this happens. Raising the minimum wage in the United States will create a huge unbalanced economy by increasing the cost for businesses to hire. It will drive small business, which are struggling in the today’s economy and will be forced to close. Hence, the government should not raise the minimum wages. Minimum wage may cause increase of the prices as the cost for businesses to hire will increase. Some businesses will try to increase the prices of goods because people including minimum wage worker have more money to spend.
National minimum wage was announced in 1998. This meant that employers would pay each worker a fixed rate that set by the government for working hours. The debate no increasing minimum wage has been a continuing matter for many years. In the United States, minimum wage started when the Fair Labor Standards Act of 1938 was passed and minimum wage started at 25 cents per hour. In 2011, according to estimates by the U.S. Bureau of Labor Statistics, 3.8 million American workers received the federal minimum wage of $7.25 per hour or less. The purpose of setting a minimum wage is to arrange working hour and to ensure that every worker get payed a suitable wage for working. One of the most regularly asked questions in the U.S is: ‘Should minimum wage be increased or not?’.
Minimum wage in the United States has been argued round for several years. Due to inflation, the minimum wage for workers had to be increased in order to balance for the increase in living standers. Many would argue that raising the minimum wage would benefit the economy by reducing income inequality. It could lower poverty by reducing the gap between jobs earnings. Although there would probably be people who lose their jobs after raising the minimum wage, and it would be very difficult for them to find new ones as the cost for hiring worker will increase, therefore, the number of poor people will surge. Workers who receive a minimum wage tend to rely on government aid or charities to compensate their necessary needs. By raising the minimum wage, prices may go up as a result of the rise in wages. However, many companies would be forced to close their stores and let go thousands of workers. This would place a huge pressure on the government reliefs programs as well as charities and create a massive number of poor people that is very hard to deal with.
Others who support the rise in minimum wage argues that increasing the minimum wage would have a good effect by rising the wages of people who receive above the minimum wage. Increasing the minimum wage would result in an increase wages not only for people earning minimum wage, but also for workers who make above the minimum wage. Therefore, it will create a more tougher work environment. Businesses will find that they must offer systematized raises to everyone working for them to preserve productivity levels. Increasing the minimum wage will increas the sum of unemployed workers. People who keep their jobs get slightly more money, workers who lose their jobs will suffer or fail to get new ones. This cost of raising the minimum wage will lead businesses to react by laying off workers instead of giving these raises. Businesses will try to increase the prices of things as the cost for providing the markets with their goods swollen over the minimum wage increase. It also may lead businesses toward investing in automated methods, technology, and machines to increase productivity rather than investing in human resources. For example, instead of having items checked and bagged by cashiers, self-service stations are installed, therefore less people are needed to fill this kind of jobs. If a worker position could be replaced by a machine, many businesses would replace them rather than giving raises. Businesses might also choose to outsource their employment needs to a country where the workforce costs are lower.
Workforce expenses are one of the biggest businesses have. Raising the minimum wage will make employers obligated to pay more, and their incomes may not fund this increased payment. This means some employees will find themselves out of business because their employer cannot pay the extra expenses. This results in more workers finding themselves unemployed which places an unnecessary pressure on the economy. It also stimulates greater costs for merchandises or services that creates an unbalance problem which contradicts the intended effect of the raising the minimum wages.
Many poor people will not be unaffected by an increase in the minimum wage as they do not have a steady job or not working at all. Poor families usually have one person that is employed full time. Raising the minimum wage will not change their financial position. If people are choosing to be employed with minimum wage, then they will remain in poverty, no matter what the raise in the minimum wage. Some poor people who earns the minimum wage would likely stop developing their lives if they make enough to survive. They might stop aspiring for better life. Creating more jobs, or changing more the nature of jobs from just a part time job to a full-time job, may have a better financial effect on poor people than just raising wages. Workers who get the minimum wage are normally not the main providor in their homes. According to the Bureau of Labor Statistics, workers under age 25 make about 50% of all workers making the minimum wage. Young people may be lock out of the workforce if the minimum wage is increased. Raising the minimum wage is therefore an unsuccessful solution to poverty.
Raising the minimum wage has many disadvantages in the long term and some advantages for the short term. increases to the minimum wage will place a problem on employers, especially small businesses, that might result in levels of unemployment. to make it more difficult for the less skilled workers with little or no work experience to find job.