What Would Happen If The Government Increases Minimum Wage Five More Dollars An Hou

The federal minimum wage was introduced in 1938 during the Groovy Depression under President Franklin Delano Roosevelt. It was initially set at $0.25 per 60 minutes and has been increased past Congress 22 times, most recently in 2009 when it went from $half dozen.55 to $vii.25 an hour. 29 states plus the District of Columbia (DC) have a minimum wage college than the federal minimum wage. 1.8 one thousand thousand workers (or 2.3% of the hourly paid working population) earn the federal minimum wage or beneath.

Proponents of a higher minimum wage state that the electric current federal minimum wage of $seven.25 per hour is besides low for anyone to live on; that a higher minimum wage will help create jobs and grow the economy; that the failing value of the minimum wage is i of the primary causes of wage inequality betwixt depression- and middle-income workers; and that a majority of Americans, including a slim bulk of cocky-described conservatives, support increasing the minimum wage.

Opponents say that many businesses cannot afford to pay their workers more, and will be forced to close, lay off workers, or reduce hiring; that increases accept been shown to brand information technology more difficult for depression-skilled workers with little or no work experience to discover jobs or become upwardly mobile; and that raising the minimum wage at the federal level does not have into account regional cost-of-living variations where raising the minimum wage could hurt low-income communities in particular. Read more background…

Pro & Con Arguments

Pro 1

Raising the minimum wage would increase economic activity and spur job growth.

The Economic Policy Institute stated that a minimum wage increase from the electric current charge per unit of $7.25 an hour to $10.10 would inject $22.1 billion internet into the economy and create about 85,000 new jobs over a three-year phase-in period.[1] Economists from the Federal Reserve Bank of Chicago predicted that a $1.75 rise in the federal minimum wage would increase aggregate household spending past $48 billion the following year, [2] thus boosting Gdp and leading to job growth. A 1994 report by economists Alan Krueger, PhD, and David Carte, PhD, compared employment in the fast food industry after New Jersey raised its minimum wage past fourscore cents, while Pennsylvania did non. Krueger and Carte observed that chore growth in the fast food industry was similar in both states, and found "no indication that the rising in the minimum wage reduced employment." [3] Their findings were corroborated by economists Hristos Doucouliagos, PhD, and T.D. Stanley, PhD, in a review of 64 minimum wage studies. The authors found "piffling or no evidence of a negative clan betwixt minimum wages and employment." [4]
Read More

Pro two

Increasing the minimum wage would reduce poverty.

A person working full time at the federal minimum wage of $vii.25 per 60 minutes earns $xv,080 in a year, which is xx% higher than the 2022 federal poverty level of $12,331 for a 1-person household under 65 years of age just 8% below the 2022 federal poverty level of $xvi,337 for a unmarried-parent family unit with a child under 18 years of historic period. [7] [8] According to a 2022 Congressional Budget Office report, increasing the minimum wage to $9 would lift 300,000 people out of poverty, and an increment to $ten.10 would lift 900,000 people out of poverty. [v] A 2022 study by Academy of Massachusetts at Amherst economist Arindrajit Dube, PhD, estimated that increasing the minimum wage to $10.10 is "projected to reduce the number of non-elderly living in poverty by around iv.half-dozen meg, or past vi.8 million when longer term effects are accounted for." [6]
Read More

Pro iii

A higher minimum wage would reduce government welfare spending.

If low-income workers earned more money, their dependence on, and eligibility for, authorities benefits would decrease. The Center for American Progress reported in 2022 that raising the federal minimum wage past 6% to $10.ten would reduce spending on the Supplemental Nutrition Assist Plan (SNAP, formerly known equally food stamps) by half dozen% or $4.6 billion. [9] The Economical Policy Constitute determined that by increasing the minimum wage to $10.10, more 1.7 meg Americans would no longer be dependent on government assistance programs. They report the increase would shave $7.6 billion off annual authorities spending on income-support programs. [10]
Read More

Pro four

The minimum wage has not kept up with inflation.

Because the federal minimum wage is not indexed for inflation, its purchasing power (the number of goods that can exist bought with a unit of currency) has dropped considerably since its meridian in 1968. The minimum wage in 1968 was $1.threescore, which is equivalent to $eleven.16 in Jan. 2022 dollars and which is 53.nine% higher than today's $7.25 federal minimum wage. [seven] [11] Between July 2022 and the last increase in the minimum wage in 2009, the federal minimum wage lost eight.1% of its purchasing ability to inflation. [vii] [12] According to Liana Fox, PhD, Senior Analyst at the Economic Policy Institute, "inflation indexing guarantees low-wage workers a wage that keeps footstep with the ascent costs of goods and services." [thirteen] Raising the minimum wage and indexing it to aggrandizement would ensure that low-wage workers could adopt a standard of living commensurate with the current economy. [xiv] [15] [16]
Read More

Pro 5

Improvements in productivity and economic growth accept outpaced increases in the minimum wage.

While the estimates of how much the minimum wage should be increased vary, many economists hold that if information technology had kept footstep with rising productivity and incomes, it would be higher than the electric current $vii.25 an hour. Co-ordinate to a written report by the Center for Economic and Policy Enquiry (CEPR), the federal minimum wage would have been $21.72 per hour in 2022, instead of $7.25, if the minimum wage had kept pace with increases in productivity since 1968. [17] The Plant for Policy Studies estimated in 2022 that personal income has grown by 100.6% since 1968, while the minimum wage has stagnated: "If our standard for minimum wages had kept pace with overall income growth in the American economic system, it would now be $21.sixteen per hour." [14] The Economist stated in 2022 that "America as a whole is an outlier among advanced economies… one would expect America, where Gdp per person is $53,000, to pay a minimum wage around $12 an hour. That would mean a enhance of well-nigh 65% for Americans earning the minimum pay charge per unit." [xviii]
Read More

Pro six

Increasing the minimum wage would reduce income inequality.

Among the 34 Organisation for Economic Cooperation and Development (OECD) fellow member countries, the United States has one of the highest levels of income inequality, with only Chile, United mexican states, and Turkey having higher levels of income inequality. [xix] In 2022 the richest ane% of the U.s. population earned 22.83% of the nation'due south total pre-tax income resulting in the widest gap between the rich and the poor since the 1920s. [twenty] A 2022 study constitute that the decrease in the aggrandizement-adjusted value of the minimum wage since the 1980s has been a correspondent to America's loftier levels of inequality. [21] Isabel Sawhill, PhD, Senior Fellow in Economic Studies at the Brookings Institution, stated in 2022 that raising the minimum wage would reduce income inequality, and Jason Furman, PhD, Chairman of President Obama's Council of Economic Advisers, stated in 2022 that the weakening value of the minimum wage "is i of the important [reasons]… for inequality at the bottom." [22]
Read More

Pro 7

A minimum wage increase would help to reduce race and gender inequality.

Despite representing 47% of U.s. workers, women make upwards 63% of minimum wage workers. [23] [128] African Americans correspond 12% of the Us workforce, and make upwardly 17.seven% of minimum wage earners. [25] [26] 16% of the labor force is Hispanic, and they correspond 21.v% of workers making the minimum wage. [25] [26] In a time when the median income for women is 78% of the national median income, and African Americans and Hispanics make 67% and 79% of the median income respectively, increasing the minimum wage is necessary to create a more equitable income distribution for disadvantaged groups. [27]
Read More

Pro 8

Increasing the minimum wage would accept a ripple effect, raising the incomes of people who make slightly above the minimum wage.

Melissa S. Kearney, PhD, and Benjamin Harris, PhD, of the Brookings Establishment found that increasing the minimum wage would result in higher wages not only for the 3.seven one thousand thousand people earning minimum wage, just too for upwards to 35 one thousand thousand workers who make up to 150% of the federal minimum wage. [28] Researchers at the White House Council of Economical Advisors (CEA) found that an increase to $ten.x an hour would heighten wages for 28 million Americans–nearly 9 million of those due to the ripple issue. [29]
Read More

Pro 9

Increasing the minimum wage would increment worker productivity and reduce employee turnover.

Increases in wages are associated with increased productivity, according to many economists, including Janet Yellen, PhD, Chair of the Federal Reserve. [30] Alan Manning, DPhil, Professor of Economic science at the London School of Economics, stated in 2022: "Equally the minimum wage rises and work becomes more attractive, labor turnover rates and absenteeism tend to refuse." [31] A 2022 University of California at Berkeley written report plant "striking bear witness that… turnover rates for teens and eating house workers fall substantially following a minimum wage increase," declining by about 2% for a 10% increase in the minimum wage. [32] A 2022 survey found that 53% of pocket-size business owners believed that "with a higher minimum wage, businesses would benefit from lower employee turnover and increased productivity and client satisfaction." [33]
Read More than

Pro 10

The current minimum wage is non high enough to allow people to beget housing.

According to a 2022 report from the National Low Income Housing Coalition, a worker must earn at to the lowest degree $xv.50 an hr (over twice the federal minimum wage) to exist able to beget to rent a "minor" ane-chamber apartment, and $nineteen.35 for a two-bedroom unit (more 2.v times the minimum wage). The report stated: "In no state can an individual working a typical 40-hour work week at the federal minimum wage beget a one- or two-bedchamber apartment for his or her family unit." In California in 2022, even a person earning the then state minimum wage of $9 per hour would need to work 92 hours a week to afford to rent a 1-bedroom apartment. [34] In Rawlins County, Kansas, where rental costs are some of the most affordable in the state, a living wage including housing costs for one person with no dependents is estimated by the Massachusetts Institute of Engineering science to be $9.35, 25.three% college than the federal minimum wage and the state minimum wage of Kansas. [35]
Read More

Pro eleven

The current minimum wage is not loftier plenty to allow people to afford everyday essentials.

According to a 2022 poll by Oxfam America, 66% of US workers earning less than $x an 60 minutes report that they "just meet" or "don't even have enough to meet" their basic living expenses, and 50% say that they are oftentimes worried about affording basic necessities such as food. [36] A 2022 report by the Alliance for a But Society, establish that "the federal minimum wage of $vii.25 per hour represents less than half of a living wage for a unmarried adult" and a worker supporting only himself would have to work 93 hours a week at the federal minimum wage in order to brand ends see "or skip necessities like meals or medicine." [37]
Read More

Pro 12

Raising the minimum wage would lead to a healthier population and prevent premature deaths.

A 2022 Homo Impact Partners study by Rajiv Bhatia, MD, found that raising the Californian minimum wage to $xiii an hr by 2022 would "significantly benefit health and well-being." [38] The study found that those earning a higher minimum wage would have enough to consume, be more likely to exercise, less likely to smoke, suffer from fewer emotional and psychological problems, and even preclude 389 premature deaths a year. [38] A 2022 report by the Bay Area Regional Health Inequities Initiative (BARHII) plant that minimum wage workers are more than likely to report poor health, suffer from chronic diseases, and be unable to afford counterbalanced meals. [39] The study concluded that "policies that reduce poverty and raise the wages of low-income people tin be expected to significantly improve overall health and reduce health inequities." [39] Edward Ehlinger, MD, State Health Commissioner for Minnesota, stated that raising the Minnesotan minimum wage from $6.15 an hour to $9.fifty by mid-2016 was probably "the biggest public health accomplishment… in the four years I've been wellness commissioner… If you look at the conditions that impact health, income is correct at the top of the list… Anything nosotros can practise to help enhance economical stability will have a huge public health benefit. This is a major public health issue." [40]
Read More than

Pro 13

Raising the minimum wage would increase school attendance and subtract high schoolhouse drop-out rates.

A 2022 study plant that raising the Californian minimum wage to $13 an 60 minutes would increase the incomes of 7.five million families, meaning fewer would live in poverty. Teens who live in poverty are twice as likely to miss three or more days of school per calendar month compared to those who practice non; thus raising the minimum wage and lifting families out of poverty would mean children would miss fewer school days. The study found that "recent experimental studies show that increasing income can improve school performance." [38] Increasing the minimum wage would allow teens to piece of work fewer hours for the same amount of pay giving them more time to study and reducing the likelihood that they would drop out of high school. A 2022 study by Alex Smith, PhD, Banana Professor of Economics at the U.s. Military Academy at Due west Point, found that "an increase in the minimum wage from $7.25 to $10.10 (39%)… would pb to a ii-4 pct point decrease in the likelihood that a depression-SES [socio-economic condition] teen will drop out." [41]
Read More

Pro 14

Raising the minimum wage would aid reduce the federal deficit.

According to Aaron Pacitti, PhD, Associate Professor of Economic science at Siena College, raising the minimum wage would aid reduce the federal budget arrears "past lowering spending on public assistance programs and increasing taxation revenue. Since firms are allowed to pay poverty-level wages to 3.6 meg people — 5 percent of the workforce — these workers must rely on Federal income back up programs. This means that taxpayers have been subsidizing businesses, whose profits have risen to record levels over the past 30 years." [42] According to James Yard. Galbraith, PhD, Professor of Government at the University of Texas in Austin, "[b]ecause payroll- and income-revenue enhancement revenues would rise [as a result of an increment in the minimum wage], the federal deficit would come down." [43]
Read More

Pro 15

Raising the minimum wage would reduce crime.

According to an April. 2022 written report by the Executive Office of the President'due south Council of Economic Advisors, "higher wages for low-income individuals reduce law-breaking by providing viable and sustainable employment… raising the minimum wage to $12 by 2022 would result in a three to five per centum criminal offence decrease (250,000 to 540,000 crimes) and a societal do good of $8 to $17 billion dollars." [179] A 2022 report found that living wage ordinances "pb to modest reductions in expected robbery, burglary, larceny, and MVT [motor vehicle theft] rates." [180] Researchers who studied crime rates and the minimum wage in New York City over a 25-yr period constitute that "[i]ncreases in the real minimum wage are establish to significantly reduce robberies and murders… a ten pct increment in the real minimum wage results in a 6.3 to 6.nine percent decrease in murders" and a iii.4 to 3.7 percent subtract in robberies. [181]
Read More

Con 1

Increasing the minimum wage would forcefulness businesses to lay off employees and raise unemployment levels.

The Congressional Budget Office projected that a minimum wage increase from $seven.25 to $10.ten would event in a loss of 500,000 jobs. [5] In a survey of ane,213 businesses and human resources professionals, 38% of employers who currently pay minimum wage said they would lay off some employees if the minimum wage was raised to $10.10. 54% said they would decrease hiring levels. [44] San Francisco's Function of Economical Analysis said that an increase to $15 would reduce the city'south employment by about "15,270 individual sector jobs." [45] In 2022, Steve H. Hanke, PhD, Professor of Practical Economic science at Johns Hopkins University, surveyed the 21 European Union (European union) countries that have a minimum wage and found they had an boilerplate unemployment charge per unit of 11.8%, about a third higher than the vii.nine% boilerplate unemployment rate in the 7 European union countries that have no minimum wage. [46]
Read More than

Con 2

Raising the minimum wage would increment poverty.

A study from the Federal Reserve Bank of Cleveland found that although depression-income workers encounter wage increases when the minimum wage is raised, "their hours and employment turn down, and the combined effect of these changes is a decline in earned income… minimum wages increment the proportion of families that are poor or near-poor." [47] As explained by George Reisman, PhD, Professor Emeritus of Economics at Pepperdine Academy, "The higher wages are, the college costs of production are. The higher costs of production are, the higher prices are. The higher prices are, the smaller the quantities of goods and services demanded and the number of workers employed in producing them." [48] Thomas Grennes, MA, Professor Emeritus at Northward Carolina State University, and Andris Strazds, MSc, Lecturer at the Stockholm Schoolhouse of Economics in Riga (Latvia), stated: "the internet effect of college minimum wages would be unfavorable for impoverished households, even if there are no job losses. To the extent that some poor households too lose jobs, their net losses would be greater." [49]
Read More

Con iii

A minimum wage increase would hurt businesses and force companies to shut.

60% of small-business owners say that raising the minimum wage will "injure most modest-business owners," co-ordinate to a 2022 Gallup poll. [50] Jamie Richardson, MBA, Vice President of fast food chain White Castle, said that the company would be forced to close almost half its stores and let become thousands of workers if the federal minimum wage were raised to $15. [51] Forbes reported that an increase in the minimum wage has led to the closure of several Wal-Mart stores and the counterfoil of promised stores yet to open. [52]
Read More than

Con iv

Raising the minimum wage would increment the cost of consumer appurtenances.

A 2022 commodity past the Federal Reserve Bank of Chicago stated that if the minimum wage is increased, fast-food restaurants would pass on almost 100% of their increased labor costs on to consumers and that other firms may do the same. [2] A 2022 Purdue University study plant that raising the wage of fast food restaurant employees to $15 or $22 per 60 minutes would result in a price increase of 4.iii% and 25% respectively, or a reduction in product size between 12% and 70%: "a hamburger would exist much smaller," the researchers stated. [53] NBC News found that the toll of a cup of java went up by 10 to 20% in Oakland, California, after a 36% minimum wage hike in the city to $12.25. The report also found a 6.vii% rise in coffee prices in Chicago after the minimum wage rose to $10. [54] The Alberta Hotel and Lodging Association (Canada) found that a "sudden and significant increase to the minimum wage" would outcome in "[i]ncreased prices for food & drink, invitee rooms and meeting facilities." [55]
Read More than

Con five

Teenagers and immature adults may be shut out of the workforce if the minimum wage is increased.

Minimum wage workers are disproportionately young. Co-ordinate to the Pew Enquiry Center, 16- to 24-year-olds brand up 50.4% of minimum wage earners, [56] despite representing only 13.seven% of the workforce equally a whole. [57] 24% of minimum wage workers are teenagers. [56] Matthew Rousu, PhD, Acquaintance Professor of Economic science at Susquehanna University, wrote in a 2022 article that the federal minimum wage "has a devastating bear on on teenagers" because firms will not pay many immature workers with no skills or experience minimum wage, let lonely a college wage. [58] Casey B. Mulligan, PhD, economics professor at the University of Chicago, stated that the teenage employment index fell sharply later on the minimum wage increase of July 2009 (a fall of about 8% in iii months, while the previous drop of 8% took over a twelvemonth): "This suggests that the 2009 minimum-wage increase did significantly reduce teenage employment." [59] According to a study by Thomas A. Mroz, PhD, and Timothy H. Savage, PhD, for the Employment Policies Constitute, "those experiencing unemployment at an early on age have years of lower earnings and an increased likelihood of unemployment alee of them." [60]
Read More

Con 6

Raising the minimum wage would disadvantage low-skilled workers.

From an employer'southward perspective, people with the lowest skill levels cannot justify higher wages. [61] A study by Jeffrey Clemens, PhD, and Michael J. Wither, PhD, found that minimum wage increases result in reduced boilerplate monthly incomes for low-skilled workers ($100 less during the outset year following a minimum wage increase and $fifty over the adjacent 2 years) due to a reduction in employment. [62] James Dorn, PhD, Senior Fellow at the Cato Institute, stated that a 10% increase in the minimum wage "leads to a 1 to 3 pct subtract in employment of low-skilled workers" in the short term, and "to a larger decrease in the long run." [63] George Reisman, PhD, Professor Emeritus of Economics at Pepperdine University, stated that if the minimum wage is increased to $10.ten, "and the jobs that soon pay $7.25 had to pay $ten.10, then workers who previously would non have considered those jobs because of their ability to earn $viii, $9, or $x per hr will now consider them… The effect is to expose the workers whose skills practise not exceed a level corresponding to $7.25 per hr to the competition of better educated, more-skilled workers presently able to earn wage rates ranging from but above $7.25 to just below $10.10." [48]
Read More than

Con 7

Increasing the minimum wage reduces the likelihood of upward mobility.

Don Boudreaux, PhD, Adjunct Scholar at the Cato Plant, explained, "the minimum wage cuts off the first rung of the employment ladder, and it's that outset lowest paying rung that provides the skills and experience workers demand to reach the side by side rung and to go along climbing their way to a better life." [166] Seth Zimmerman, PhD, Assistant Professor of Economics at the Academy of Chicago, stated: "minimum wage laws can lead to labor market rigidities that make it more than hard for people to move upwards the economic ladder. These rigidities tin subtract relative mobility and… can decrease absolute upwards mobility as well." [65] John W. O'Neill, PhD, Managing director of the School of Hospitality Management at Pennsylvania State University, stated that an increase in the minimum wage to $10.10 or higher would "decrease opportunities for upward mobility in the hospitality manufacture [where] entry-level, hourly roles are traditional 'routes to the height'," and where workers acquire the skills needed to proceeds a promotion. [66]
Read More

Con 8

If the minimum wage is increased, companies may use more robots and automatic processes to replace service employees.

If companies cannot afford to pay a college minimum wage for low-skilled service employees, they will use automation to avoid hiring people in those positions altogether. Oxford University researchers Carl Benedikt Frey, PhD, and Michael A. Osborne, DPhil, stated in a 2022 study that "robots are already performing many simple service tasks such equally vacuuming, mopping, lawn mowing, and gutter cleaning" and that "commercial service robots are now able to perform more than complex tasks in food training, health care, commercial cleaning, and elderly care." [67] As chaser Andrew Woodman, JD, predicted in his web log for the Huffington Post, a minimum wage increase "could ultimately be the undoing of low-income service-industry jobs in the The states." [68] The Washington Post observed that every bit minimum wage campaigns gain traction around the country, "Many [restaurant] chains are already at piece of work looking for ingenious ways to take humans out of the film, threatening workers in an manufacture that employs 2.iv million await staffers, nearly 3 1000000 cooks and food preparers and many of the nation's 3.3 million cashiers." [69]
Read More than

Con 9

Increasing the federal minimum wage would unduly harm the poorest areas of the United States.

In 2022 Mississippi had the lowest cost of living at 83.5% of the national average, while Hawaii had the highest at 168.6%. [70] In areas like Mississippi where the toll of living and average incomes are especially low, employers would demand to spend proportionally more to pay their minimum wage employees than employers in higher toll areas like Hawaii, and nevertheless would be unable to cover the toll by raising prices considering their customers would not be able to afford them. [71] Co-ordinate to Andrew Grand. Biggs, PhD, and Marker J. Perry, PhD, of the American Enterprise Institute, the results of this disparity "could be disastrous… [for] small-scale communities around the country." [71]
Read More

Con ten

Raising the minimum wage would increment housing costs.

In cities such as Los Angeles with a express housing supply, raising the minimum wage only non increasing housing stock would atomic number 82 to an increase in rental prices every bit "700,000 minimum wage workers will have more money to compete for the same low inventory of rental units," co-ordinate to researchers from the University of California in Los Angeles. [72] One Los Angeles-based blogger estimated a raise in rental prices past $173/month if the minimum wage was increased to $15/hour. [64] Lucas Hall, founder of Landlordology.com, stated: "Raising the minimum wage causes a temporary spike in spending power… Landlords enhance rents as tenants are willing and able to pay more." [73]
Read More

Con 11

The free market should determine minimum wages, non the federal government.

A survey past the Small Business Network found that 82% of small businesses agreed that "the authorities should not exist setting wage rates." [74] According to Per Bylund, PhD, Research Professor at Baylor University, the federal minimum wage "disrupts the residual of the market and prohibits the cosmos of new jobs." Bylund stated that the complimentary marketplace should determine wages based on the value of work produced so employers can hire the needed number of workers at wage levels that make sense for their businesses. [75] According to Mark J. Perry, PhD, of the American Enterprise Institute, government-mandated minimum wages "are always capricious and almost never based on whatever sound economic/cost-do good analysis… [I]n dissimilarity market-adamant wages reverberate supply and demand conditions that are specific to local market weather and vary widely by geographic region and by manufacture." Perry said market-determined wages event in more employment opportunities for unskilled workers, increased profits for companies, and lower prices for the consumer. [76]
Read More

Con 12

Raising the minimum wage would decrease employee benefits and increase tax payments.

According to James Sherk, MA, Senior Policy Analyst at the Heritage Foundation, a single mother working full time and earning the federal minimum wage of $vii.25 an hr would be over $260 a month worse off if the minimum wage were raised to $x.x: "While her marketplace income rises by $494, she loses $71 in EITC [earned income taxation credit] refunds, pays $37 more in payroll taxes and $45 more in state income taxes. She as well loses $88 in food stamp benefits and $528 in child-care subsidies." [77] A 2022 study of 400 The states Principal Financial Officers (CFOs) past Campbell Harvey, PhD, J. Paul Sticht Professor of International Concern at Knuckles University, found that 40% of CFOs would reduce employee benefits if the minimum wage were raised to $ten an 60 minutes. [78] Some staff at the Seattle-area nonprofit organization, Full Life Care, asked for a reduction in hours after the minimum wage was raised, citing concerns that the increment will mean they lose their housing subsidies all the same they are still unable to afford market-rate rents. [79]
Read More than

Con 13

Raising the minimum wage would decrease loftier school enrollment rates and increase drop-out rates.

Mark J. Perry, PhD, of the American Enterprise Institute states that "the allure to higher wages from minimum wage legislation reduces high school completion rates for some students with limited skills, who are then disadvantaged with lower wages and career opportunities over the long-run if they never cease high school." [80] A 2009 study published in the American Journal of Economics and Folklore found that in Maryland, "a 25-cent increase in the real minimum wage… was associated with a 0.55 percent increment in the dropout rate for Hispanic" students. [81] A 2005 study published by Cornell Academy found that "a longterm 10% increase in the earnings of low-skilled workers could subtract loftier schoolhouse enrollment rates by equally much every bit 5-7%." [82] Co-ordinate to a 2003 written report by economists David Neumark, PhD, and William Wascher, PhD, in states where teens tin go out school earlier xviii, a 10% increment in the minimum wage caused teenage school enrollment to drop by 2%. [83]
Read More

Con 14

Raising the minimum wage would encourage companies to outsource jobs to countries where costs would be lower.

According to the Statistic Brain Research Institute, ii,382,000 U.s.a. jobs were outsourced in 2022 with 44% of companies saying they did so to reduce or command costs. [84] A 2022 report of 400 The states Chief Fiscal Officers (CFOs) by Campbell Harvey, PhD, J. Paul Sticht Professor of International Business at Duke Academy, constitute that 70% of CFOs would "increase contracting, outsourcing, or moving actual production outside the United States" if the minimum wage were raised to $ten an hour. [78]
Read More than

Con xv

Raising the minimum wage would not reduce criminal offense.

According to a 2022 study past Boston College economists, increasing the minimum wage leads to reduced employment which leads to an increase in thefts, drug sales, and violent crime. [182] Their results point that "criminal offense will increase by 1.9 percentage points among xiv-thirty year-olds as the minimum wage increases." [182] Researchers found that betwixt 1977 and 2022 increases in the minimum wage resulted in "no significant change" in the rates of trigger-happy law-breaking or property crime. [183]
Read More

Did You Know?
ane. America's minimum wage law was signed in 1938. The minimum wage was set at 25 cents, which is equivalent to $four.28 in 2022 dollars. [7]
2. 53% of minimum wage workers are employed in food grooming and serving related occupations. [186]
iii. 29 states and Washington, DC have prepare minimum wages above the federal minimum of $vii.25 an hour. As of Jan. 1, 2022, the highest is Washington, DC, at $12.50 an hr, followed by Washington state at $11.50 an hour. [85]
iv. 49% of minimum wage workers are anile 16-24, 51% are older than 25. [186]
5. The kickoff state minimum wage laws, introduced betwixt 1912 and the early 1930s, only covered women and minors. The first to cover men was introduced in 1937 in Oklahoma. [99]

Our Latest Updates (archived after thirty days)

Archived Notices (archived after 30 days)