Sweeten the Paycheck

Date: Sunday, November 10, 2013

Title: Supporters Say Minimum Wage Hike Gaining Support
News source: NPR
Article date: November 06, 2013 7:03 PM

Author of article: Marilyn Geewax

Summary: More than 6 in 10 voters in New Jersey approved an increase in their state's minimum hourly wage. In January, the wage will rise to $8.25, well above the federal minimum of $7.25 an hour.

Issue: Raising the minimum wage could have very positive and very negative effects.

Argument: "We know our economy is stronger when we reward an honest day's work with honest wages," Obama said. "But today, a full-time worker making the minimum wage earns $14,500 a year."   Vs.   "When you raise the price of employment, guess what happens? You get less of it," Boehner said. "At a time when the American people are still asking the question, 'Where are the jobs?' why would we want to make it harder for small employers to hire people?"

Claim: Raising the price no matter good or bad, will affect business owners.

Supporting evidence:

• "Labor costs are one of the most significant line items for restaurants," Melvin Sickler, who owns franchises of the Auntie Anne's Pretzels and Cinnabon brands, told the Senate at a March hearing on wages. A round of federally forced wage increases "would be very difficult for my business to withstand."
• One supporter, Dan Preston, co-owner of Telequest Inc., a video company in Princeton, N.J., released a statement saying: "The costs of higher wages are offset through greater consumer demand, increased employee productivity and substantial savings from reduced employee turnover, for example."
• Polls typically show that minimum wage hikes win the support of at least 2 out of 3 voters. For example, a Gallup poll taken earlier this year showed 71 percent of Americans would approve a wage hike.

 

Analysis: I had a summer job. I earned minimum wage. I was a dog watcher and there was good and bad but the bad would have felt a lot better if I was getting more money. The paychecks sure would’ve been nicer. I do understand that it would have affected the owner of the business. It was run by her alone and she had five dogs herself. It was understandable that she could only pay me minimum wage. However there were adults working there. They had apparently worked there a long time so perhaps their pay was higher, however if it wasn’t it would be very difficult to work there I think. Minimum wage is not enough for someone living on their own, and supporting themselves.  

Relate to economic concepts: If minimum wage was to increase people might feel like they had more ‘spending money’ they would then put more money back into the economy through purchasing things. This would make for a healthier economy.