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Should Minimum Wage Be Raised?
“Many people who have little experience get their start at places like fast food restaurants. But if wages are higher, employers are less likely to take a chance on people with less experience because it's a big investment. Fewer people would get a shot at proving themselves.” –Kevin Hassett, Economist and former advisor to John McCain & Mitt Romney
Minimum wage was put into effect on June 25, 1938 when President Franklin Roosevelt signed the Fair Labor Standards Act (FLSA), allowing everyone to at least 25 cents ($4.04 USD in today’s standards) an hour. Minimum wage is a guaranteed minimum salary a worker can get. Minimum wage laws exist in almost every country, and an employer cannot give you less money than the fixed point no matter the job—unless, an individual is a tipped employee, then the employee will make $2.13 an hour.
In Arkansas, the minimum wage is currently $7.50 USD. Many people in America believe the minimum wage should be doubled to a whopping $15 USD! While almost everyone thinks people should have the right to a fair minimum wage, some feel it should not be raised. In the past, the United States has had to increase minimum wage worker’s salaries because of the introduction of new industries such as fast food, retail, construction, health care, etc. However, why should we pay more to people who fry food, than people who save lives? Although harsh, this is the number one argument for those against the raise. The average life-saving EMT makes $14.48 USD, granted, most rural towns have lower incomes from jobs and this amount can be much smaller. In fact, in Jonesboro, Arkansas, some EMTs are making hardly over $11 USD an hour. While some employees have worked at a McDonald’s for years without access to or money for an education—after all, in 2010, the average four-year college tuition was $27,300—they can’t expect to make double their salary in just a few years.
According to the American Council on Education, every year, millions of students who qualify for Pell Grants miss out on the free government cash simply because they don't fill out the Free Application for Federal Student Aid. Plus, there are easy ways to earn scholarships for college such as joining a few clubs, having a minimum 2.0 GPA, or even student-specific scholarships for race, disabilities, interests, etc. If you have a single parent, divorced parents, no child support, or even live with a different family member, you qualify for certain scholarships. Sports, theater, Girl/Boy Scouts, choir, band, and almost any other club/organization can also give out grants on occasion. In fact, in today’s society there are several free colleges including online schooling. Even without college, one can expect to earn raises and promotions through hard work and perseverance, not asking Congress to give them more money.
Congress has actually been raising the minimum wage steadily since 1938, but never for more than 70 cents in a year or two. David Neumark of the University of California, Irvine has done extensive research on this issue, stated, “Based on 20 years of research, I doubt there is ever a good time to raise the minimum wage.” He adds, with a few exceptions, “The bulk of the evidence — from scores of studies, using data mainly from the U.S. but also from many other countries — clearly shows that minimum wages reduce employment of young, low-skilled people.” In 2014, President Barack Obama said he planned to raise minimum wage to $10.10 USD in just three years. Making this a 95 cent jump each year—more than it’s ever been raised in that time frame before.
However, this never actually happened, or minimum wage would have already reached that amount. If the rate remains at $7.25 at the end of his term, he will be the third president to fail to raise it since the minimum wage was enacted in 1938. The other two presidents who did not sign for a hike with the minimum wage were Gerald Ford and Ronald Reagan.
In 2016, California became the first state to adopt legislation which will gradually raise the minimum wage to $15 per hour. New York, Seattle, and Washington D.C., all have plans to raise their minimum wage as well. This will not go without consequences. A Purdue University study released in July 2015 suggests paying fast-food restaurant employees $15 an hour could lead to higher prices. Prices at these businesses could increase by an estimated 4.3 percent, according to the report. Not only will the prices of Big Macs skyrocket, but jobs will be lost. “Roughly 85% of the careful, unbiased economic studies since the early 1990s confirm that a higher minimum wage does indeed have a negative employment impact on directly affected employees. Recently, a study from economist David Macpherson of Trinity University estimated that over 16,000 fewer Wisconsinites would have job should a $10.10 minimum wage become a reality,” The Employment Policies Institute (epionline) said in a reposted article by economist, Michael Saltsman. This quote addresses President Obama’s claim increasing the wage will “raise” employment rates.
A local employee making about $2.13 an hour, from Dixie Café in Paragould, Arkansas said, “I don’t think the minimum wage should be raised. This isn’t a job you do to make money. I took it temporarily, and of course, I’m looking into [taking a second job], but why should I make more money than a nurse or anyone else doing anything more important?” Regardless of someone’s stance on the issue, we can all agree there will be major consequences to face if the nation cannot find a fair compromise for its people.
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