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

The minimum affiance is something that F.D.R. put in go into a long time ago during the Great Depression. I dont signify it worked then. It didnt solve any problems then and it hasnt solved any problems in 50 years.-- John Raese The minimum wage in the United States was established at a lower place the Fair Labor Standards Act of 1938 in an effort to stabilize the scrimping following the Great Depression. It was designed to create a minimum tired of living by ensuring that workers could provide for the health and well being of their families. With its line of achievement workers were legally ensured that they would receive a minimum of 25 cents for each min worked. With each increase of the minimum pay rate ($7.75 today) there has been an change magnitude level of debate. Such discussions have resurfaced again as the country attempts to lot with the blow of the Great Recession of 2008. Economists generally agree that minimum wage increases do not affect national employmen t significantly. However the surface of an increase can have a dramatic impact on the employment of segments of the population, GDP, wrong 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 prisonbreak in our country. A review of the supply and study curve provides the simplest story for our recommendation. A minimum wage is essentially a price blow out of the water for labor. If this floor is set above the current market price as would be the case with an increase in minimum wage - the demand for workers ordain be reduced while the supply of workers get out increase. As illustrated below the result would lead to increased unemployment. http//notatthedinnertable.weebly.com/uploads/3/4/1/1/3411210/5183225_orig.pngFirms will retain more productive and higher p aid workers, however lower skilled and lesser paid (those you intend to assist) will be shed. Those who lose their job will then require organisation benefits, such as unemployment compensation and welfare, to survive thus increasing government expenditures and debt. In the event that a firm does not fire workers the damage of the additional wages must be addressed. Typically the increased make up 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