Keep It to a Minimum

Raising the national minimum wage seems like a quick and easy way to help lower the high poverty rate, right?

Many Americans believe raising the minimum wage will help with the issue of poverty when in reality, the unemployment rate will only increase. Based on the fact that the majority of minimum wage workers do not come from poverty and that most Americans who live in poverty are not employed at all, I do not think that raising the minimum wage will have a positive outcome concerning the poverty rate.

 

shutterstock_80139061If the national minimum wage were raised, companies would slowly be forced to let go of their workers because it would become more expensive to keep thm. Instead of being able to hire more people who are working for less, they would have fewer workers who are paid a little more. In the end, the poverty rate would not decrease at all because there will actually be about 500,000 less job opportunities in the United States. Not only will it cause complete job loss but it will also lowerthe number of hours people will be allowed to work. Even if a worker does not completely lose their job, they may be cut back on their working hours to save the company money. Also, if the manager of a business is forced to raise the wage of his or her workers, they might not have enough money to do so, causing them to loose their job along with their business. Raising the minimum wage may not only cause people to lose their jobs but also lose their businesses.

Another reason raising the minimum wage would be a failed attempt at helping the poverty rate is the fact that few minimum wage workers are actually living in poverty. About only 21 percent of people who work hourly under minimum wage are working these jobs as their only source of income. Most people who are working minimum wage jobs are teenagers working in high school and college for extra money. This means that raising the minimum wage would cause some people who really need the money to lose their jobs and others who do not necessarily need the money to only make more money. 21 percent of people is not a large enough percentage to raise the national minimum wage and it will definitely not help the poverty rate to decrease.

ted_20130325a

Lastly, the majority of people who are living under the poverty line are unemployed. If the majority of people living under poverty do not have a job, how would raising the minimum wage actually help them? It would only cause people to loose their jobs making more and more people unemployed. Although raising the national minimum wage may seems like a quick and easy way to help lower the amount of people living in poverty, once it is further looked into, it will only cause a higher poverty rate. The higher minimum wage will cause more people to lose their jobs creating a higher national unemployment rate.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: