Raising the Federal Minimum Wage, Essay Example

I am going to write about the merits and drawbacks of raising the minimum wage from an economic perspective. This issue remains a divisive one in economic and political circles in an ongoing dialogue about abating rampant poverty that continues to burden the working poor. My position within this debate is that raising the federal minimum wage during a time in which the American economy is stagnant and recovering very slowly would spawn adverse consequences that would exacerbate poverty levels rather than provide a corrective for it. My working thesis thus far is as follows: Rather than argue over the merits and disadvantages of a higher minimum wage at the federal level, it is clear that government at both the state and federal levels need to consider passing economic policies that will generate greater economic growth, thereby increasing overall wages and providing all workers more job opportunities to climb out of poverty.

Note Taking on Sources

I have procured various sources for my working bibliography in order to find secondary sources that take this divisive issue into consideration. My findings reveal that the vast majority of the academic evidence supports the adverse ramifications of raising the minimum wage from an economic perspective. In order to provide nuance to the study, I have also collected  various studies that yield positive results for those in support of a higher minimum wage, as David Shipler argued in his book. The note-taking process has commenced.

Cahn, David and Jack Cahn. “Popular Does not Mean Practical: The Case Against the Federal Minimum Wage.” Huffington Post. 10 Jun. 2014. Web. 27 Oct. 2015. www.huffingtonpost.com/david-cahn/popular-does-not-mean-pra_b_5128311.html

1. 71% of Americans think that the federal government should mandate a higher minimum wage to at least $10.10 from all areas on the political continuum (87% Democrats, 68% independents, and 50% of Republicans) according the Pew Research and the recent polls conducted
2. Obama supports a higher minimum wage, but the authors contend that raising the minimum wage would render it more difficult and not easier for hard-working Americans to find stable employment –> Economics 101 attests to this stark reality
3. Although it is enticing to raise the minimum wage as a corrective for escalating poverty rates, the authors contend that both hard facts and logic render raising the federal minimum wage.

Currie, Janet M. The Invisible Safety Net: Protecting the Nation’s Poor Children and Families. Princeton, NJ: Princeton University Press, 2006. Print.’

4. Currie argues that the social safety net in modern America is currently under attack, stressing both the fragility and significance of this very social safety net.
5. Provides theoretical reasons in support of the federal government assuming a larger role in the alleviation of poverty in the United States amongst the working class.
6. Currie brings to light new empirical data that supports social programs and unearths their efficacy for dealing with poverty in the United States.

Blank, Rebecca M., Danziger, Sheldon H., and Robert F. Schoeni, eds. Working and Poor: How Economic and Policy Changes Are Affecting Low-Wage Workers. New York: Routledge,

2006. Print.
2007. Therese J. McGuire and David F. Merriman who demonstrate that government aid retains the most currency in terms of supporting the impoverished during epochs of economic stagnation. Rather than cut spending to aid the poor, the authors contend that they must resist any and all political pressure to do so. This article provides support for raising the federal minimum wage and thus will provide nuance to my research paper by addressing the antithesis from an economic perspective.
2008. This source meaningful analysis on how public policy shifts play an integral role in improving the plight of impoverished workers (3).
2009. Over the past three decades there have been macro economic developments such as the decline in labor unionization, technological developments, and evolving skill requirements that workers have had to bear the brunt of. These workers at the bottom echelon of the totem pole often do not have access to resources or any marketable skills that they can use to support themselves especially during time blocs of economic transition. This work provides an economic analysis regarding how economic and policy shifts over the past three decades have impacted the well-being of low-wage laborers as well as their families.

Easterly, William. The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and So Little Good. New York: Penguin, 2006. Print.

10. Easterly writes a valuable critique of global enterprises, especially since the title alludes to an ideological justification proffered by the West of imperialism and colonialism. Indeed, he targets the purportedly benign meddling that undergirds foreign military intervention, foreign aid, and various global institutions such as the International Monetary Fund, the United Nations, and theWorld Bank (10).

11. Various institutions and efforts are, according to Easterly, contaminated with utopian social engineering, as the so-called Planners proffer solutions from a top-down approach rather than devising solutions that adapt to the culture and realistic conditions of foreign places from the bottom up (45). This work is valuable because it is meticulously detailed in its critique of various global institutions purportedly set up to abate poverty rates in developing countries.
12. When aid agencies hand out mosquito nets in impoverished, Third World countries, Easterly notes, “nets are often diverted to the black market . . . or wind up being used as fishing nets or wedding veil” (Easterly 5-6). Free nets thus hardly get to the people who actually need them to protect their health.

Even, W. E., and D.A. Macpherson. “Unequal Harm: Racial Disparities in the Employment Consequences of Minimum Wage Increases.” Employment Policies Institute. 2011. Web. 27 Oct. 2015. www.Epionline.org/studies/even_5-2011.pdf

13. This article adds a meaningful discussion of the racial disparities being exacerbated as a result of increasing the minimum wage. The Great Recession adversely impacted the American labor market the most when the federal unemployment rate hovered around 10.1%.
14. The young and vulnerable workers bore the brunt of the pain caused by this statistic, although not all of them suffered the same. This source takes into consideration the racial disparities in employment that have existed since the 1950s when the government began taking note of this statistic. While a large corpus of literature examines the various reasons for this chasm, very few studies have specifically analyzed how the wage of the labor market impacts minority groups due to the dearth of comprehensive data available for such a study.
15. This work will provide nuance to a response to Shipler’s contentions regarding whether or not raising the minimum wage would facilitate the abatement of poverty levels.

Hall, D. and D. Cooper. “How Raising the Federal Minimum Wage Would Help Working Families and Give the Economy a Boost.” Economic Policy Institute. 2012. Web, 27 Oct. 2015. www.epi.org/publication/ib341-raising-federal-minimum-wage

16. This article traces the positive impacts of raising the minimum wage at the federal level, which would be helpful in the section that addresses the antithesis of my research. Hall and Cooper argue that raising the minimum wage would amplify the earnings that working-class workers who have been the hardest hit by the economic recession would receive.
17. Moreover, more than 100,000 new jobs would be created overall and thus boost economic growth. Within the current economic climate, seizing on the opportunity, according to the authors, to raise the federal minimum wage in order to boost the economy should be pursued for immediate tangible consequences with regards to poverty in the United States.
18. “Raising the minimum wage would help workers still reeling from the effects of the recession. The resulting impact on the overall economy would be demonstrably positive, as minimum-wage workers would spend their new earnings immediately, generating a positive impact on GDP and related modest employment growth.”

Lipton, Eric. “Fight Over Minimum Wage Illustrates Web of Industry Ties.” The New York Times. 09 Feb. 2014. Web. 27 Oct. 2015.

19. Lipton penned this web-based article in order to inform the American people about the contentious dispute surrounding the elevation of the minimum wage. It reveals how Republicans and Democrats alike continue to bicker about raising the minimum wage as a result of prime opportunities.

20. Lobbying campaigns with labor unions and corporate lobbyists have been launched in order for the American electorate to become information about the pressing issue. This source contributes to the evidence pointing to the benefits of increasing the federal minimum wage.

Lowrey, Anna. “Raising Minimum Wage Would Ease Income Gap but Carries Political Risks.” The New York Times. 13 Feb. 2013. Web. 27 Oct. 2015.

21. This article posted on the New York Times website addresses how the minimum wage retains the capacity to facilitate equal income in the United States. It broaches the subject of raising the minimum wage by sifting through various statements made by both the president Barack Obama and John Boehner, the former speaking of the House of Representatives. Both Obama and Boehner concurred that hiking up the minimum wage would spawn positive ramifications on impoverished families in way that did not burden businesses and did not increase the unemployment rate.
22. Lowrey expounds on her argument by providing statistics disseminated by the While House regarding how increasing the minimum wage by a certain percentage would offset the escalating income inequality that has persisted since the 1980s. Obama attested to the fact that raising the minimum wage would also elevate the incomes of working-class families in addition to businesses.
23. “President Obama called on Congress to raise the federal minimum wage to $9 an hour from $7.25 and to automatically adjust it with inflation, a move aimed at increasing the earnings of millions of cooks, janitors, aides to the elderly and other low-wage workers… By making employees more expensive for companies to hire, some economists argue that higher minimum wages increase the unemployment rate — a particularly toxic possibility given the high levels of joblessness that remain long after the recession has ended.”

McConnell, C. R., Brue, S. L., and D.A. Macpherson. Contemporary Labor Economics, 10th ed. New York: McGraw-Hill Irwin, 2013. Print.

24. This work provides an overview about the economics behind the living wage currently in place. It proffers excellent supplementary information in order to better understand the issues surrounding raising the minimum wage and the potential ramifications such an action would have in abating poverty levels.
25. In addition, it presents various economic models to understand how the minimum wage impacts the employment sector and the levels of poverty therein.