One debate that caught my attention is “Poverty, Prosperity and the Minimum Wage.” Three of the four debaters argue that raising the minimum wage is an effective combatant to poverty, although they fail to realize the significance of the consequences that come along with it.
Poverty is a big problem in America and raising the minimum wage isn’t the most effective solution. In order for workers to receive a higher pay, businesses as a whole will net a decreased earning because a larger cut must go to the employees. While this may not cause a significant enough difference for huge corporations that pull in a fortune every year, it will make it increasingly difficult for individuals to start their own company and for smaller businesses to maintain theirs. This would lower the amount of people in the workforce because of how expensive it would become for corporations to afford to pay an increased cut to their current amount of workers. Furthermore, there were eight states that did raise their minimum wage between 2011-2012, but the poverty rate remained unchanged.
I agree with Michael Strain’s argument regarding solutions for poverty and the declining workforce participation among men. Strain believes that expanding the Earned Income Tax Credit, rather than increasing the minimum wage, will be more beneficial because it will increase employment and will increase the amount of money that is being redistributed to low-income households. I am on the same side as Strain because increasing the minimum wage would decrease the size of the workforce, which will just lead to more people in poverty and make it more difficult for them to climb out. Instead, it would be better to increase the amount of Earned Income Tax Credit that is directed to low-income households because it will help them financially and will encourage participation in the workforce. I realize that increasing the tax return to those who need it the most isn’t going to be an instant cure, but I think it is a larger step in the right direction when comparing it to increasing the minimum wage.
Do you agree that increasing the minimum wage would most likely result in a lower amount people working? If not, what argument do you have for increasing the minimum wage? What other solutions do you think there are for reducing poverty?
-Hunter Wood
I believe that raising the minimum wage is a horrible thing. If it's raised, less people will have more jobs. It isn't an efficient way for society to function this way because it would be obviously more preferable to have more workers and less people off the streets. Lowering the minimum wage would honestly be better. The availability of jobs will rise and more people will have the opportunity of making money.
ReplyDeleteI agree that increasing the minimum wage isn't the answer for help poverty so desperately needs. With increased minimum wage less people, most likely the people who need the job the most, will be hired leaving even more unemployed. There is a major flaw in the economy if a person can no longer live accordingly on minimum wage. The economy and system needs to be fixed and I agree that increasing the amount of Earned Income Tax Credit could help this situation. Also I believe jobs should be easier to obtain for people with minor law convictions. Several of the unemployed and homeless are past convicts who never get a chance because of their record. Employing them will majorly help the poverty and unemployed epidemic.
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