Controversy On Minimum Wage

Heather Surface
Writing Seminar
Lex Brown
10/13/2013
Controversy on Minimum Wage A minimum wage is an hourly wage rate that is set by law. The minimum wage was introduced during Roosevelt’s presidency in 1938. This was the time of The Great Depression where unemployment was at 19%. Today it is around 9%. As early as 2010 the minimum wage in the United States was $7.25 per hour. Now, only 3 years later, it is up to $7.85. Some feel as if minimum wage should be raised to decrease the amount of poverty in America whereas in reality, a higher minimum wage would only hinder low class Americans. Higher minimum wage would actually prove detrimental to the poor, the lower class will still fall below the poverty line, and raising the minimum wage will not target the desired demographic. Contrary to popular belief a higher minimum wage would harm the poor. Researcher David Henderson explains that a higher minimum raise would force employers to be more particular when hiring employers. Many teenagers and young adults would be passed up for an employee who is older and can provide for better hours. The amount of people an employer is going to hire will decrease because of the amount they have to pay each employee. This is cutting people out of jobs. A job at $7.85 is better than no job at $9 an hour (Henderson). Holly Skylar, author and researcher disagrees. Skylar believes that in order to pump prime the economy more money needs to be put into the economy. Regardless of how much a minimum wage worker makes, they are still a worker, and workers are consumers. If workers are making money, they are spending it, which then in turn, cycles its way back into American businesses (Skylar). Regardless of the amount of money being made per hour, if an American worker doesn’t have a job, money will not be spent. Minimum wage is not meant for the four person family. The cost of everyday living for those with a family of four is too expensive with only a minimum wage job. Senior Jason Furman, a senior at Brookings Institute, presents facts that are clean-cut when it comes to the living cost with a minimum wage job. Even with the $7.85 minimum wage a family of four still falls $1,335 below the poverty line. In addition a family with a full-time minimum wage job who is receiving government aid and food stamps would still not be lifted above the poverty line with a minimum wage increase (Furman). Skylar agrees that the cost of living is just too much for some families today. The top 1% control 39% of the wealth in America. Even a family with two steady paychecks struggle to afford a home, college, healthcare and retirement once normal for middle-class households with one paycheck. American’s are having trouble affording necessities and the cost of living in America today is not helping (Skylar). No matter what the minimum wage is, poverty will still be a problem in America. The raising of the minimum wage will target the wrong demographic in America. The raising of minimum wage will most directly affect teenagers and middle aged workers. This demographic is mostly related with minimum wage jobs because they have a small resume which then requires them to work low skilled jobs. Raising the minimum wage just %15 will put up to 590,000 teenagers out of work (Henderson). James Sherk who is in labor policy for the Heritage Foundation adds that most minimum wage workers are of the ages 16-24. Of the minimum wage workers three fifths of them work part time. A mere one of every five minimum wage workers live below the poverty line. Three fifths of those living below the poverty line work at all (Sherk). The following shows that a minimum wage raise would not target enough of those living under the poverty line, which in turn would not affect poverty. The problem of poverty in America goes much deeper than just the minimum wage. A lot more goes into poverty than just the amount the average American gets for their hourly wage. Ultimately, a raise in minimum wage would not be affective because it harms the poor, costs too much to live, and is targeting the wrong demographic. Poverty will always exist in America. If reducing the amount of Americans below the poverty line is what is being sought, there needs to be a lot more effort put in elsewhere than just the minimum wage.