We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Minimum Wage - Essay Example

Comments (0) Cite this document
YOUR NAME HERE YOUR TUTOR HERE COURSE HERE DATE HERE Minimum Wage and its Impact on State and Federal Economies INTRODUCTION There is conflicting opinion, research and statistical data about the impact of minimum wage increases or decreases to the state-level and federal-level economies…
Download full paper
Minimum Wage
Read TextPreview

Extract of sample
Minimum Wage

Download file to see previous pages... Based on research and statistics, it should be said that minimum wage rates, when increasing rather than remaining steady, have broad negative consequences to state and federal economies. THE EVIDENCE Some of the highest state-issued minimum wage rates are Vermont at $8.46, Washington at $9.04 and Oregon at $8.80 (Parrott, 1). The intention of these increases was to improve poverty rates and also stimulate more consumption in the economy. However, a very recent news article indicates that the unemployment rate in Oregon has increased to 8.9 percent in September, up almost a whole percentage point in August (Foden-Vencil, 1). In Washington state, the unemployment rate rose from 8.3 percent in June to 8.6 percent in September (PSBJ, 1). In Vermont, the unemployment rate rose from 4.7 percent to five percent in August (CT Post, 1). Why is this significant? The New England Public Policy Center indicates that rises in the minimum wage rate make it more inviting for business owners to cut employee benefits in an effort to offset higher payroll costs. A current study discovered statistically that when minimum wage rates increase by 20 percent, business-sponsored health care offerings to employees also decrease by four percent (NEPPC, 8). Because many business owners do not like to carry the stigma that is usually associated with social judgment for non-compliance to corporate social responsibility, they will often reduce hours of existing employees rather than slashing health care benefits (NEPPC, 8). All of these efforts are intended to prevent significant capital losses that occur when the minimum wage rates increases, especially important for small business owners without a strong cash or market position. Three of the states having the highest minimum wage rates also all have increases in the unemployment rate at the state level. According to the National Center for Public Policy Research, minimum wage hikes actually cause job losses in the long-term (NCPPR, 1). This is because it is usually the small business owner that offers jobs at a minimum wage, however small businesses make up the majority of businesses currently operating in the United States. At the same time, small business owners are experiencing inflationary increases in their supply chain, cost of health care provision, distribution and transportation for finished products, and utility costs. Therefore, significant spikes in minimum wage cannot be offset except through investment and hedging strategies, which is something that small business is not in a position to consider. Texas is one example of a state with a low minimum wage, in-line with the federal rate of $7.25. This state saw a very modest increase in unemployment from July to September, however, the unemployment rate was nearly 100 percent stable from 2010 through most of 2012 (ycharts.com, 1). Unlike other states with significant wage increases and sharp increasing spikes in unemployment, Texas seems to defy the direct relationship between wage increases and unemployment rises. The same is true for Ohio, which also maintains a rate of $7.25, and this particular state saw modest drops month after month in 2012, with a currently stable rate of 7.25 percent, down from over 10% in 2010. This implication in this case, when compared to higher rates, is quite obvious. At the federal level, minimum wage also has negative consequences when it is raised. It should however, to prevent bias from the analysis, recognize that higher wage increases provide ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Minimum Wage Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1457241-minimum-wage
(Minimum Wage Essay Example | Topics and Well Written Essays - 1250 Words)
“Minimum Wage Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/macro-microeconomics/1457241-minimum-wage.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Minimum Wage
At first sight minimum wage seems to be helping the employees; however there are many controversies associated with minimum wage. Proponents argue that minimum wage would prevent employers from exploiting the employees and it will help the employees to reduce their poverty level and increase their living standards.
4 Pages(1000 words)Essay
National Minimum Wage
Even when the idea was introduced it won an 88% majority endorsement in the UK. (Jowell 2000). This essay will concentrate on the effects of an established minimum wage on women in particular. This minimum wage rate applies to part-time workers, casual workers, agency workers and home workers.
4 Pages(1000 words)Essay
The Minimum Wage Law
The New Deal legislation that had the ideal of providing a living wage for all workers has gone unfulfilled, as the wage is still far below the federal standard for poverty. However, advocates of the law argue that it does give the worker some level of protection against the exploitation of greedy businesses.
6 Pages(1500 words)Essay
Minimum Wage
Almost all the countries in the world have similar kind of minimum wage laws and legislation. Minimum wage legislation may be interpreted as making it either unlawful for employers to pay workers less than the minimum wage, or unlawful for workers to provide labor or services for less than the minimum.
2 Pages(500 words)Essay
National Minimum Wage Essay
In that respect it used to stand out from other European countries. France, the Netherlands, Luxembourg, Spain and Portugal have national minimum wages set by the government. The Scandinavian countries along with Belgium and Greece have a national minimum wage set by collective bargaining.
6 Pages(1500 words)Essay
Minimum Wage Law
This circumstance has resulted in a polarization of opinion between economists, politicians, employers, social activists and the general public as well. Legislators passed this depression-era law
12 Pages(3000 words)Essay
Minimum wage
As such, individuals operating such daycare centers face diverse challenges and they ought to overcome them, in a bid to run their affairs smoothly. Such challenges include funding and space. This manuscript will mull over
3 Pages(750 words)Essay
Minimum Wage
However, it seems there is no common ground where all parties believe that the public will benefit from any available option. Minimum wage is the lowest form of remuneration that an employee can
2 Pages(500 words)Essay
Raising the minimum wage
However, this is an issue that must be addressed in a serious way. The only problem with increasing the minimum wage is the fact that this is a blanket decision and covers all kinds of employers from the biggest multinationals to the smallest startups. Minimum wage
4 Pages(1000 words)Essay
Minimum wage issue
The minimum wage has been at a constant level of $7.25 an hour for a long time, which necessitates a need for review. It is noteworthy that employees who earn the minimum wage are usually teenagers and young adults trying to kick-start their
5 Pages(1250 words)Essay
Let us find you another Essay on topic Minimum Wage for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us