Pro Minimum Wage Research Paper
Pro: The minimum wage across Canada should be increased to at least $10.00 an hour. This would allow some of the working poor to live above the poverty level.
In some cases, the current minimum wage is not enough to live on, and extra assistance is necessary. In some cases the minimum wage is so low that it encourages people to rely on social assistance. Frank Field talks about this in his book The Minimum Wage: "Indeed, a low paid worker who works full time may in some instances be worse off than if unemployed. This is not because the benefits paid to the unemployed are large; in fact, they are officially regarded as the minimum on which a family can manage to live." (1984: 42) So, there are other reasons for the unemployed being better …show more content…
As prices for goods and services that we consume increase, inflation is the result. The inflation rate is used to measure the rate of change in the overall price level of goods and services that we typically consume. While inflation is a regular annual occurrence in modern economic systems, it only becomes a policy concern when reaching unacceptably high levels. As long as we properly anticipate inflation, we can prepare and absorb much of its shock. Problems occur when inflation is greater than we predicted, when it is unanticipated. We can conclude that inflation may cause many economic distortions, including slower growth and higher unemployment. Many policymakers advocate attempting to sustain the lowest possible rate of inflation. One way of maintaining the economy is by setting a minimum wage. Increasing a minimum wage would have many side effects on the overall economy, so economists discourage raising the minimum wage in order to keep inflation down and thereby encouraging economic growth. Economic growth explains the expansion of an economy's capability to produce goods and services, and is usually accompanied by higher …show more content…
As the minimum wage increases, so does inflation. If an employer has to pay higher wages, then the price of the product or service being produced will have to cost more in order to pay the employee. In return the prices of all goods and services will rise, and the person earning higher wages, makes no gain. In some instances, a pay hike would not make a livable wage, but in fact could make it worse. People who normally get tax breaks for having a low income, would now end up paying more in taxes and may actually end up making less money overall. Higher minimum wages force employers to cut back on training, which deprive low wage workers of any chance of long-term advancement, in return for a small increase in current income. Having higher wages for low-paid positions might also discourage workers from gaining new skills. In most circumstances, minimum wage workers may start off at minimum wage and then as time goes on and their skills are refined, they end up getting paid more. So while many people may start off at minimum wage, many of these people don't necessarily stay fixed at minimum wage. There are many minimum wage jobs that offer advancement
In some cases, the current minimum wage is not enough to live on, and extra assistance is necessary. In some cases the minimum wage is so low that it encourages people to rely on social assistance. Frank Field talks about this in his book The Minimum Wage: "Indeed, a low paid worker who works full time may in some instances be worse off than if unemployed. This is not because the benefits paid to the unemployed are large; in fact, they are officially regarded as the minimum on which a family can manage to live." (1984: 42) So, there are other reasons for the unemployed being better …show more content…
As prices for goods and services that we consume increase, inflation is the result. The inflation rate is used to measure the rate of change in the overall price level of goods and services that we typically consume. While inflation is a regular annual occurrence in modern economic systems, it only becomes a policy concern when reaching unacceptably high levels. As long as we properly anticipate inflation, we can prepare and absorb much of its shock. Problems occur when inflation is greater than we predicted, when it is unanticipated. We can conclude that inflation may cause many economic distortions, including slower growth and higher unemployment. Many policymakers advocate attempting to sustain the lowest possible rate of inflation. One way of maintaining the economy is by setting a minimum wage. Increasing a minimum wage would have many side effects on the overall economy, so economists discourage raising the minimum wage in order to keep inflation down and thereby encouraging economic growth. Economic growth explains the expansion of an economy's capability to produce goods and services, and is usually accompanied by higher …show more content…
As the minimum wage increases, so does inflation. If an employer has to pay higher wages, then the price of the product or service being produced will have to cost more in order to pay the employee. In return the prices of all goods and services will rise, and the person earning higher wages, makes no gain. In some instances, a pay hike would not make a livable wage, but in fact could make it worse. People who normally get tax breaks for having a low income, would now end up paying more in taxes and may actually end up making less money overall. Higher minimum wages force employers to cut back on training, which deprive low wage workers of any chance of long-term advancement, in return for a small increase in current income. Having higher wages for low-paid positions might also discourage workers from gaining new skills. In most circumstances, minimum wage workers may start off at minimum wage and then as time goes on and their skills are refined, they end up getting paid more. So while many people may start off at minimum wage, many of these people don't necessarily stay fixed at minimum wage. There are many minimum wage jobs that offer advancement