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Should the minimum wage be raised?

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What are the pros and cons of raising minimum wage? Do you think it should be raised?
asked Oct 10, 2015 in Business by Quinn24
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There are two schools of thought when it comes to the issue of minimum wage levels. 


Those who oppose it point out that raising it usually resorts in businesses doing one of two things, sometimes both. First, they cut hours or headcount to keep their payroll budget static. This sometimes means splitting full-time positions into mulitple part-time positions to avoid paying benefits. 


It can also mean eventually raising prices to afford the new higher labor costs, which just adds inflation to the economy and the buying power of the new minimum wage goes down again anyway.


On the other hand, supporters point out that having a minimum wage can ensure that those lowest on the economic ladder are somewhat self-sufficient and don't drain social resources. There is also a moral imperative that a growing economy should benefit everyone, as income inequality is quite disparate right now. A rising tide should lift all boats to some degree.


Personally, I would support the minimum wage being raised. It's been over six years, and the economy has grown tredmendously since then, but wages haven't followed suit for many.


I think a better solution is to just peg minimum wage to inflation using an automated formula, so that it can keep pace with the economy annually without requiring the seemingly impossible action of Congress to get anything done to raise it.


[1]http://dailycaller.com/2015/07/25/its-been-six-years-since-feds-raised-the-minimum-wage-what-were-the-economic-results/
[2]http://money.cnn.com/infographic/pf/low-wage-worker/

answered Oct 10, 2015 by Topher (27,830 points)
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I have had this discussion many times with my children who have jobs while attending college. In my opinion, minimum wage should be left alone. There are numerous factories around my area that only pays a couple of dollars more than minimum wage. The last time minimum wage was increased, none of the factories did a raise to compensate for the increase in minimum wage. What is happening is that more and more people are deciding to forego manufacturing jobs. Over time, this will necessitate sending more of our jobs overseas because businesses cannot afford to pay workers.


In addition to this, if you are receiving a minimum wage job that pays well, where is the incentive to take on more responsibilities and promotions?
answered Oct 11, 2015 by LisaH (33,300 points)

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