Abolishing Minimum Wage - 1808 Words

Abolishing the Minimum Wage Many Americans think of the minimum wage as a means of raising the income of the working people. However, the minimum wage is not the best way to combat poverty. In fact, the minimum wage does more harm than good. The list of its negative effects is a long one: it causes unemployment; it prevents unskilled workers from getting the on-the-job training they need; it encourages teenagers to drop out of school; it promotes the hiring of illegal aliens; and it increases welfare dependency. For all of these reasons, the minimum wage should be eliminated. To evaluate the minimum wage, we must first understand why it was originally created and what its historical effects have been. The minimum w age was introduced in†¦show more content†¦Several studies have shown in addition that â€Å"increases in the minimum wage lead employers to cut back on both work hours and training† (Bartlett, 1996) and that any further benefits that are gained by an incr eased minimum wage are â€Å"short lived† (Mishel, Bernstein, Schmitt, 1998, p.3). Employers may, for example, try to recoup a loss in profits by reducing benefits such as health care and pension (Reynolds, 2004). Another study conducted by economist David Neumark of Michigan State University in 1995 shows that raising the minimum wage negatively affects school attendance among teenagers. The study reports that teenagers are enticed to leave school early by the higher wagers seemingly made available to them by the minimum wage. Many of these teenagers drop out of school only to find that no permanent jobs are available due to the increase in unemployment caused by the minimum wage. According to policy analyst Bruce Bartlett (1999), in â€Å"1967, 1968, 1974, 1975, 1976, and annually from 1978 through 1981 ......a 10-percent rise in the minimum wage† consistently reduced the employment of teenagers 1% and 3%. Even worse is the fact that when teens cannot find legiti mate jobs, poverty may cause them to resort to crime. Studies by Ohio State University and the University of California in 1977 have flatly concluded that â€Å"increasesShow MoreRelatedThe Pros and Cons of Abolishing Minimum Wage954 Words   |  4 PagesAbolishing Minimum Wage Increase, decrease or abolish minimum wage; which is best for our citizens and our economy? Minimum wage was implemented to help unskilled workers to make a living wage but as time goes on the value of minimum wage has plummet. In my research paper I will provide knowledge about minimum wage such as the history, purpose, benefits and the results. I will also present the pros and cons of abolishing the minimum wage and the increase/decrease of minimum. The minimum wage wasRead MoreThe Minimum Wage Laws Will Secure Prosperity For American Business1024 Words   |  5 Pagesbusinesses and their success, which translates to a monumental importance of need to ensure they are allowed to flourish. The minimum wage law hinders American enterprises in numerous ways. Ultimately, the removal of minimum wage will improve the country’s standard of living by creating more lucrative businesses and also by helping citizen’s needs to be met. Dismantling minimum wage laws will secure prosperity for American business and in turn improve the standard of living for Americans. According toRead More America Needs a Variable Minimum Wage Essay1468 Words   |  6 Pages Minimum wage is the least amount of money that an employer is legally required to pay an employee. It is something that all people in the American workforce know about. 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