Candidate Calculator 2008 Election
Increase Minimum Wage
Introduction
The Fair Minimum Wage Act of 2007 increases the current federal minimum wage of $5.85 per hour over two years: $6.55 per hour on July 24, 2008; and then $7.25 per hour on July 24, 2009. The act also has rekindled the debate over the value of the minimum wage.
Yes: Support Increase Minimum Wage
Contrary to popular misconceptions, the minimum wage does not adversely affect job growth. In fact, studies since the last raise in the minimum wage in 1996-1997 and the previous raise in 1991 show no measurable negative effects on job numbers or small business growth. This may be because employers can recoup costs of increased wages through higher productivity, lower recruiting and training costs, decreased absenteeism and higher employee morale. Furthermore, an increase in the minimum wage motivates low-income workers to find employment, as opposed to living on welfare. And when low-income workers earn more, they spend more, which helps the economy. They also are less likely to participate in crime. Economic arguments aside, increasing the minimum wage is the moral thing to do in a country as wealthy as the United States. Although it will not raise people above the poverty line, it still offers low-income workers hope and a chance to better themselves.
You support this or similar arguments.
No: Against Increase Minimum Wage
Minimum wage laws reduce the number of low-wage jobs available because businesses are less likely to pay a minimum wage for many low-skill jobs. As a result, low-skill workers compete for fewer jobs, and the least employable are less likely to find work. Furthermore, wage increases for low-skill jobs have an adverse trickle-down affect through the economy. Small businesses are less able to create low-skill jobs than are large businesses, which put them at a competitive disadvantage to large businesses, which in turn reduces competition in the marketplace. Increases in the minimum wage also result in businesses passing on increased labor costs to consumers by raising prices. This hurts the low class most and in general fuels inflation. Inflation not only hurts the low class more than middle and upper class, but also place the U.S. economy at a competitive disadvantage to foreign economies because many large businesses may choose to locate jobs in countries other than United Sates that do not have minimum wage laws. Finally, government has better options than a minimum wage for increasing the incomes of low-wage earners, such as the earned income tax credit.
You support this or similar arguments.
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Additional Information
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| Real Clear Politics |
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