There is a controversy over minimum wage. Those who were for an increase in the minimum wage wanted it moved from $5.15 to $7.15 an hour. These people supported the Democrats, and their efforts to raise the base wage. They argue that raising it would help millions of Americans, pulling many above the poverty line. In May 2007 the Iraq war funding bill was passed, and that increased the spending provisions in the country, and also provided $4.8billion for small business tax breaks. Those who support the minimum wage increase say that this will boost the economy and also, that the tax cuts issued shouldn't have been combined with the minimum wage increase. Those who are against the minimum wage increase argue that doing so would be "counterproductive" for the economy, and that it is not an effective way of dealing with poverty. This is because the base wage increases will most likely affect teenagers more than anyone else. Also, raising it will cause prices to rise, and therefore will cause more people to lose jobs--contributing to unemployment. They feel that the laws of supply and demand-in a market-based economy- are what should determine the minimum wage. Along with this, they feel that there should be less protectionism, because there would be less government and the economy would follow its natural pattern.
I agree with the second argument, that there should be less government involved with the economy and that the minimum wage should not be raised. If the minimum wage is raised, then the prices of all goods and services will increase, and thus more jobs will be cut. This is a more conservative view because there is less government controlling the market. By keeping the minimum wage constant, we will allow the economy of the United States-and even the world- to follow its natural course, and will keep people afloat in the economy. Someone else who agrees with me is Alex Adrianson of The Heritage Foundation, who stated that "Raising the minimum wage increases the prices of goods produced by minimum wage workers. Consumers respond by buying less, and employers respond by making less, which means fewer jobs. Employers also respond to relatively more expensive labor by investing in labor-saving technology, which again means fewer jobs."
http://www.nationalcenter.org/WCT010207MinimumWage.html
I agree with the second argument, that there should be less government involved with the economy and that the minimum wage should not be raised. If the minimum wage is raised, then the prices of all goods and services will increase, and thus more jobs will be cut. This is a more conservative view because there is less government controlling the market. By keeping the minimum wage constant, we will allow the economy of the United States-and even the world- to follow its natural course, and will keep people afloat in the economy. Someone else who agrees with me is Alex Adrianson of The Heritage Foundation, who stated that "Raising the minimum wage increases the prices of goods produced by minimum wage workers. Consumers respond by buying less, and employers respond by making less, which means fewer jobs. Employers also respond to relatively more expensive labor by investing in labor-saving technology, which again means fewer jobs."
http://www.nationalcenter.org/WCT010207MinimumWage.html
Issue #3- Welfare
Isssue #1-All Things Being Equal
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