The Minimum Wage Should Not Be Increased :: Argumentative Persuasive Essays

The marginal wage is something that F.D.R. put in place a desire time ago during the great Depression. I dont think it worked then. It didnt solve any(prenominal) problems then and it hasnt solved any problems in 50 years.-- John Raese The stripped-down wage in the United States was established under the Fair assiduity Standards Act of 1938 in an effort to stabilize the economy following the commodious Depression. It was designed to create a minimum standard of living by ensuring that workers could provide for the health and well being of their families. With its passage workers were legally ensured that they would go through a minimum of 25 cents for each hour worked. With each growing of the minimum pay rate ($7.75 today) there has been an increase level of debate. such discussions have resurfaced again as the country attempts to deal with the impact of the Great Recession of 2008. Economists generally agree that minimum wage increases do non affect national employment signifi placetly. However the size of an increase nookie have a dramatic impact on the employment of segments of the population, GDP, damage of goods, and otherwise measurements of productivity. From an economic perspective, mandated final payment negatively impact society in the long run (all other variables being held constant) therefore we recommend that other policy measures be considered to narrow the inequality gap in our country. A review of the supply and demand curve provides the simplest explanation for our recommendation. A minimum wage is essentially a price floor for labor. If this floor is eagerness above the current market price as would be the sideslip with an increase in minimum wage - the demand for workers lead be reduced while the supply of workers will increase. As illustrated below the turn out would lead to increased unemployment. http//notatthedinnertable.weebly.com/uploads/3/4/1/1/3411210/5183225_orig.pngFirms will retain more productive and higher paid workers, however demoralize skilled and lesser paid (those you intend to assist) will be shed. Those who meet their job will then require government benefits, such as unemployment compensation and welfare, to survive thus increasing government expenditures and debt. In the case that a firm does not fire workers the cost of the additional wages must be addressed. Typically the increased cost of doing business can be managed in two ways. The firm will transfer the increased cost to consumers by raising the selling price of its goods or