Over the last thirty years, inflation has increased hourly wages by more than 200 percent. Since 1947, the job market has gone through great changes due to growing international trade, advancing technologies, and the spread of high-speed Internet access. Many Americans have seen great financial success, but others have lost their jobs or have been faced with stagnant wages. This causes a concern for the number of poverty stricten people living in the United States. Being considered poor is any U.S. family of four whose annual income in 2006 was less thean $20,444. In 2005, 12.6 percent of Americans were considered poor. That's 37 million men, women, and children living in poverty. Many people think that raising the federal minimum wage will help reduce the number of poor. They are convinced that raising the minimum wage will positively affect the lives of millions American workers. Critics argue, stating that raising the minimum is a weak weapon for fighting poverty.
Personally, I'm a critic of raising the minimum wage. Our country's economy was built on capitalism, meaning the laws of supply and demand control our financial system. We have a successful market-based economy and I think the federal government should minimize its regulations concerning minimum wages. An increase in minimum wage will result in higher prices and more job cuts. It will hurt small to medium sized companies in America, which are important to the vitality of our economy. Also, like I stated earlier, 37 million people are living below the poverty line. Only three million out of the 37 million are actually full time workers. Raising the minimum is not going to help the other 34 million. Expanding the EITC is a more reasonable way to help the working poor. Expansion of the EITC will reduce taxes provided to low income workers, with no interference in the market.
Personally, I'm a critic of raising the minimum wage. Our country's economy was built on capitalism, meaning the laws of supply and demand control our financial system. We have a successful market-based economy and I think the federal government should minimize its regulations concerning minimum wages. An increase in minimum wage will result in higher prices and more job cuts. It will hurt small to medium sized companies in America, which are important to the vitality of our economy. Also, like I stated earlier, 37 million people are living below the poverty line. Only three million out of the 37 million are actually full time workers. Raising the minimum is not going to help the other 34 million. Expanding the EITC is a more reasonable way to help the working poor. Expansion of the EITC will reduce taxes provided to low income workers, with no interference in the market.
Richard Berman, the Executive Director of the Employment Policies Institute, is also a critic of raising the minimum wage.
Issue number 1: http://jumpingjoeblog.blogspot.com/
Issue number 3: http://backstroker321.blogspot.com/
No comments:
Post a Comment