Minimum Wage Changes

“My mom worked at McDonald's, and she decided she wanted to make more money, so she got into the management program at McDonald's. And that's how you move up the chain. It's not by demanding that minimum wage is raised; it's by actually acquiring the skills. That's the way that people get ahead in life.” Politian Raul Labrador expresses. According to At Issue from the SIRS data base, in 1938 the Fair Labor Standards Act successfully re-established a national minimum wage after it was battled between 1933 and 1935 by the Supreme Court. Critics of minimum we say it is not sufficient. They believe it should be changed to a living wage standard, which accommodates for economic factors that determine a wage that is able to provide the necessities
Firstly, the economy would be impacted due to job losses. Harris says, “The proposed increase in the minimum wage to $10.10 an hour would cost the economy 500,000 jobs”. An increase in minimum wage would negatively impact the flow of money in our economy. Secondly, minimum wage has already affected the food industry. Puzder describe food service jobs have plummeted in Seattle and San Francisco. In San Francisco 2,500 food service jobs have been terminated, and in Seattle 1,100 have as well. As you can see, raising minimum wage has already impacted jobs in large cities on the west coast. Thirdly, new businesses are discouraged because of larger minimum wages. Puzder continues to report, that new business startups were less than the number of business closures. Businesses are struggling to stay afloat in this economy. In sum, the economy in the United States would be negatively impacted by increased minimum
For starters, economic growth will increase opportunity and decrease poverty. Puzder writes how history has proven the free enterprise system can produce enough economic growth to accommodate for opportunities and poverty. This would be ideal for growing companies to compete for workers in a successful economy. In addition, the voucher system would provide unemployed with jobs. Harris believes that the unemployed and low income jobs, specifically young people would gain the valuable work experience along with wages. With this in mind, there are creative solutions that already exist that need to be encouraged. Lastly, the current voucher system strengthens the economy by supporting businesses. Harris declares “fragile businesses could thrive and new companies would start up.” As has been noted, people would profit from the subsidies that increased production while lowering product prices. In brief, there are many solutions too poverty in