Minimum Wage Essay

In this years verbalize of the Union Address to Congress, President Obama recommended upbringing the stripped take to benefit workers who cannot persist themselves and their families with their current salaries. The articles, Why We posit to forward the Minimum Wage and Why We Shouldnt Raise the Minimum Wage state us that in that respect were some controversies in raising the marginal arrive atings. As an economic science major, I believe it is a no-good idea to raise the token(prenominal) prosecute because it creates more than unemployment, and it forget reduce entry-level jobs. Since change magnitude minimum engross is not the dissolvent to the poor sight, the authorities should rather increment the earned income tax revenue credit entry than minimum pay.In the article Why We Need to Raise the Minimum Wage by Andy Stern and Carl Camden, the authors support raising of minimum net income. They argue that raising the minimum net profit could reward hardwo rking Americans by providing elementary needs such as sanctioned medical insurance and living in secure housing. Since the low reward ar not enough to get those canonic needs, workers argon getting paid in cash because they can avoid tax responsibilities. The authors allege that raising the minimum lock will restore dignity and value to low-wage work.Conversely, in the article Why We Shouldnt Raise the Minimum Wage, author Kevin A. Hassett and Michael R. tug argue that raising the minimum wage does not recover from scantiness, and it is a fallacious approach to hide the true appeal of the government policy. According to the authors only 11.3 sh ar of workers from the poor would benefit from raising the minimum wage. Many people who live in poverty do not work, and workers who earn the minimum wage are normally not the primary breadwinners in their households. Hasset and line of business assert that increasing the minimum wage is an insincere approach of the politicians because minimum wage uprightness could provide an opportunity to establish political denominates easily. Even though, expanding the earned income tax credit is much more efficient, the government do not want it because they do not want to use funds directly bulge out from treasury.In the frugal perspective, raising the minimum wage is a bad idea because it creates more unemployment and reduces entry-level jobs. From the point of view of basic supply and demand, employers and workers queue up thequantity of supplied take according to wages until the quantity of labor demanded equals to the quantity of labor supplied, reaching an equilibrium wage. However, the minimum wage policy ignores the market price by setting a price knock down higher than the equilibrium wage. According to the law of demand, few employers will be spontaneous to lead workers if the minimum wage is increased, and it will create unemployment.Moreover, if minimum wage increases there will be fewer entry- level jobs than ahead because firms will no longer hire unskilled workers at higher cost. Entry-level jobs are good for younger and unskilled workers. Eliminating these jobs makes it severe for the low skilled and younger workers to check suitable employment. As mentioned in Hasset and seeks article raising the minimum wage is not the solution to poverty because workers who earn the minimum wage are generally secondary earners like an antique parent earning some retirement income, a spouse with a part age job, or they are young people living with their parents. According to the Center on Budget and Policy Priorities, in 2009, elaboration of EITC lifted 3.1 million people out of poverty. In conclusion, earned income tax credit will be a more efficient tool than minimum wage policy.