To Those Worried about Small Businesses…

People continue to make arguments about how raising the minimum wage would have a negative impact on our society. One of the main arguments is that raising the wage would hurt small business owners and small businesses. Many conservatives agree with this, including New Jersey Governor Chris Christie. They claim that there would be fewer small jobs as a result and that small businesses would’t have the funds to support and pay their workers.

In reality, according to Think Progress, “The majority of low-wage workers are not employed by small businesses but rather by large corporations with over 100 employees.” This can also be proven by BusinessWeek, who has shown that “the three largest employers of minimum workers are McDonalds, Walmart, and Taco Bell.”

BusinessWeek countered the argument that raising minimum wage would hurt small businesses last February when they came forward and claimed that many small business groups are actually advocating for a higher minimum wage. Businesses such as the National Latino Farmers & Ranchers Trade Association, the Greater New York Chamber of Commerce, and the Main Street Alliance all support raising the wage. These businesses, many with over 500,000 members in which there are various small business owners, know that raising the wage should be beneficial, so we should too.

Similarly, a survey by the United States Department of Labor that was taken in July found that 3 out of 5 small business owners support a gradual increase in minimum wage to $12. The survey claims that small business owners say raising the wage would “immediately put more money in the pocket of low-wage workers who would then spend money on things like housing, food, and gas.” This stimulation of the economy would create opportunities and would be beneficial for society in general.

The point is, we should give the people what they want. The argument of raising the wage affecting small businesses can be debunked, simply because small business owners are on board with increasing minimum wage. We should also keep track of where the majority of the minimum wage workers are employed. Since most of the minimum workers aren’t working at these small businesses, raising the wage may have less of an impact on these small business corporations than we think, and may have more of a positive impact on the overall economy.

To Those Who Doubt…

Raising Minimum Wage Would Cost A Million People Their Jobs

This is the title of an article written by Jonathon M. Trugman for the New York Post. Claiming that a million people would lose their job is quite a loaded statement, and is the first indicator that this article is questionable at best. Trugman begins his argument by saying that he agrees that the federally mandated minimum wage is “about 25 percent to 30 percent” below what it should be. He most likely begins with this statement to appeal to those who may disagree with him in attempt to draw them in before he hits them with his true opinions. One of the first arguments made by Trugman is that if the minimum wage is raised to $15 an hour, approximately 6.6 million people with lose their job. This can be immediately disproven by a quick visit to the United States Department of Labor website. A highly qualified group of 600 economists, including Nobel Prize winners, declared in a letter to President Obama that increasing federally mandated wages would have insignificant to no negative effect on companies and job availability in the United States. They also stated than an increase would spark the economy because workers would be more inclined to spend.

Trugman also makes the bold claim that jobs that pay minimum wage are not supposed to be permanent jobs. This unfortunately is the mindset held by many Americans. The most substantial argument against this idea is that it is simply not true. The minimum wage laws were not enacted with the intent to not provide a living wage. President Franklin Delano Roosevelt was the force behind the minimum wage law and can be quoted saying:

The claims made in this New York Post article are simply opinions that have proven to lack in truth. While it may be easy to oppose increasing minimum wage if your comfortably sitting in your corporate office, it is time we stand together as American’s and fight for higher federally mandated wages.

Dear Opponent of Increased Minimum Wage

Contributor to Tharawat Magazine, Shereen El Agamy, wrote an article called “4 Reasons Why The U.S. Should Not Raise the Minimum Wage.” Agamy illustrates 4 examples as to why the minimum wage shouldn’t be increased and tells readers how increasing the federal wage would be devastating. Accompanying these reasons are very dramatic images; One of which shows burning money:

Why are Euros burning? Isn’t this about the U.S. federal wage?

I’m going to explain why these four reasons provided by Agamy are false and tell you how raising the minimum wage would actually benefit the American people. Here are the four reasons why Agamy thinks the US shouldn’t raise the federal minimum wage:

1.) Raising the minimum wage risks inflation and hurts the middle class.

According to Oren M. Levin-Waldmen, public policy and public administration professor at Metropolitan College of New York, raising the minimum wage would actually increase purchasing power for everyone involved, therefore helping the middle class. Levin-Waldmen’s research shows that in past years when the minimum wage increased, the median wage increased with it. The process of increases the wages at the bottom, travels upwards, like a “ripple effect,” benefiting those working for more than minimum wage.

 

2.) Raising the minimum wage hurts employment.

According to the United States Department of Labor  increasing the minimum wage has little or no negative effect on employment of workers. The Department of Labor argues that raising the minimum wage would result in low-wage workers would have additional money they could spend on different goods and services increasing demand and job growth.

3.) Raising the minimum wage is the wrong way to help low-income families.

The Economic Policy Institute says that 28% of minimum wage workers are parents. With more than 76 million children in the United States, more than 1/4 of these children’s parents would benefit from the increase in minimum wage. While this percentage varies from state by state, parents all over the country would benefit from the increase of wages. Such a wide variety of people would be affected by the increase that there would be widespread economic benefits.

4.) Raising the minimum wage doesn’t help the people you think it will.

This is one of my favorite arguments, because those who oppose minimum wage always say that the only people who would benefit from raising the minimum wage would be teenagers, flipping burger part time. This sentiment is completely  untrue.

As you can see in the graphic above, 80.5% of American minimum wage workers are over the age of 25. Raising the minimum wage doesn’t just help the teenagers working part time, it benefits every type of person.

 

 

Against Minimum Wage?

Should we give our citizens livable wages?

Seems like an easy answer…Yes…but why has it become one of the hottest topics of our time?

Today, the United States of America holds itself to be the land of opportunity. But, is this opportunity only for those with privilege and resources? How can a country so great still have such detrimental setbacks? Information from the U.S. Department of Health & Human Services states, as of 2015 roughly 50 million Americans live in poverty. With a family of 3-4 people, their income does not meet the rough measure of 24,000 dollars a year. With that a study done by the University of California, Davis Center for Poverty Research has found that minimum wage employees earn about 15,000 dollars annually. This in no way can support a family. So why are so many people against the Rai$e It Movement?

Almost always the finger is pointed at the wrong groups of people. An article by Ira Stoll writes about why raising the minimum wage is a terrible idea. It reinstates that main things we always hear. You will always hear that its only college kids working minimum wage or those who are not independent. Or that it is illegal immigrants who will take all the jobs and they will get free money. Worst of all, an argument is that raising minimum wage is not a hand-up but rather a free handout to those who do not “earn success”or “earn their education.” Immediately people point to the wrong crowds. The majority who make up this need for a higher wage are working class adults. Information from the United States Department of Labor states, it is actually 89% of the minimum wage class that is 20 years or older. It is unfair to categorize these hard workers as anything less. Minimum wage has not grown with the economy. It has instead stagnated and we have faced the consequences. People will not lose their jobs and business owners will be able to afford the growth. Rai$e It.