Question

"If the federal minimum wage is raised gradually to $15-per-hour by 2020, the employment rate for low-wage U.S. workers will be substantially lower than it would under the status quo."

Create a 3-4 page paper in which you indicate your agreement or disagreement with the statement above. You must support your position with reference to economics principles, the use of examples and a minimum of 4 research sources.

Answer 1

The answer to the given question is.

"If the federal minimum wage is raised gradually to $15-per-hour by 2020, the employment rate for low-wage U.S. workers will be substantially lower than it would under the status quo."

I do personally agree with the statement.

• Gradually raising the minimum wage to $ 15 by 2024 will directly increase the salaries of 28.1 million workers. The average directly impacted worker who works all year will earn a $3,900 increase in annual salary income — equal to a 20.9% increase. Another 11,6 million jobs will benefit from a spillover impact when employers increase workers ' salaries by more than $15 to recruit and retain employees.
• Increasing the minimum wage to $ 15 by 2024 would reverse the deterioration of the worth of the actual minimum wage, which started mainly in the 1980s. In fact, by 2021, for the first time in more than 50 years, the federal minimum wage would have exceeded its historical inflation-adjusted high point reached in 1968.
• Over the phase-in duration of the raise, the increasing pay floor will produce an extra $118 billion in salaries, which will cascade the families of these employees and their neighbourhoods. Since low-paid jobs expend a lot of their extra money, this influx of wages will help improve the economy and improve economic investment and employment growth.
• Employees who will expect a pay raise are mostly older employees, most of whom work full time in daily work, mostly in favour of a family.
• The average age of the staff affected is 35 years. A higher percentage of workers aged 55 and over will earn a boost (14.6 per cent) compared to youth (9.3 per cent). More than half of the workers affected are middle-aged workers between the ages of 25 and 54.
• While men make up a higher percentage of the total U.S. population , the majority of employees who will be impacted by a minimum wage rise (57.9%) are women.
• The minimum wage rise will overwhelmingly rise salaries for people of colour — for example, black jobs make up 11.8 per cent of the population, but 16.9 per cent of the employees impacted. This unequal effect means that significant numbers of black and Hispanic employees will be affected: 38.1 per cent of black workers and 33.4 per cent of Hispanic workers will be elevated.
• Of the staff who will expect a rise, 60.0 per cent work full time, 44.0 per cent have some college education, and more than a quarter (28.3 per cent) have children.
• Almost four of every 10 single parents who work (38.9%) will earn better wages, including 43.0% of working single mothers. In total, 5.4 million single parents will benefit, accounting for 13.5 per cent of those affected from increasing the minimum wage to $ 15 from 2024.
• Jobs of families that will benefit are usually the main breadwinner for their families, earning an average of 51.9 per cent of their family's overall income.
• The Increase the Pay Act would benefit people in or near poverty overwhelmingly. Two-thirds (67.3 per cent) of the working class in America would earn a salary rise if the minimum wage was increased to $15 by 2024.
• A nationwide minimum wage increase to $15 in 2024 will boost incomes for parents of 14.4 million children across the United States, almost one-fifth (19.6) of all U.S. children.
• Indexing the minimum wage to the median wage would guarantee that low-wage employees share a large rise in U.S. living conditions which would eliminate a potential rise in differences between low-and middle-wage jobs.
• All told, raising the minimum wage to $ 15 by 2024 will directly or indirectly increase salaries for 39.7 million workers, 26.6 percent of wage earners.