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Paper Topic:

Increase of Minimum Wage

Say No to a Minimum Wage Increase

Minimum wage was first enacted in this country during the 1930 's , when labor unions began after the Depression . At that time , it was only 0 .25 an hour (U .S . dept . of labor . Today , the minimum wage in most states is around 5 .50 an hour , although each state has the right to set their own minimum wage (not lower than the government standard , which is 5 .15 an hour . Periodically , the federal government , or individual states increase the minimum wage (U .S . dept . of labor . But

is this a good thing ? Many sources say no

First , increasing the minimum wage is often up to the individual state which means that wages can vary drastically from place to place . For example , in Texas , the minimum wage is 5 .15 , while in Washington , it 's 7 .16 . This has several implications . First of all , workers may compete for jobs more in higher paying states . Second , if an agency is planning to hire a company for its product or service , it will likely choose the company that quotes it the lowest price . A company that pays less in wages will be the company that can produce the good or service at the lowest price . This brings up unfair competition among different businesses , for both workers and contracts (Brunell

Not only that , but increasing the minimum wage can make it impossible for small businesses , or those with tight payrolls , to compete Businesses may have to lay off workers because they cannot afford the salary increase for everyone . This has caused a significant increase in unemployment in states with a higher minimum wage , which was exactly opposite the intended effect (Brunell

Many proponents of the minimum wage increase say that it will increase overall wages for the poorest people in America . However , this denies simple economics . A business only has so much money to work with , so a business that cannot afford to pay will have lay offs . In addition , if a small increase in minimum wage does not appear sufficient , why not increase it more ? If more money is good , isn 't even more better (Garrison

Professor Garrison of Auburn University points out that it is not . He explains that the first people to be laid off in these cases are the ones who most need the money - females , African Americans , and older workers with families . Young , entry-level workers are likely to be kept and promoted as they gain experience . The already poor end up with no jobs at all , either from being laid off or from not getting hired in the first place (Garrison

What if companies can afford to pay their workers more ? Many companies are already paying their workers , even entry or bottom-level workers significantly more than the minimum . An increase in minimum wage won 't necessarily cause any hardship for them however , increasing the minimum wage assumes that these employers don 't have the heart or brains to pay their workers...

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