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Why we shouldn't raise the minimum wage

Opening Argument

The minimum wage has been an issue that has plagued our society for a long time now, during this time, groups like $15 now are constantly emerging, trying to force the increase of a minimum wage. However, The Congressional Budget Office projected that a minimum wage increase from $7.25 to $10.10 would result in a loss of 500,000 jobs, 38% of employers said that they would lay off some employees if the minimum wage was increased and 54% of employers said they would decrease hiring levels. (http://www.cbo.gov/sites/default/files/cbofiles/attachments/44995-MinimumWage.pdf). Although groups like $15 now do have good intent, they have little knowledge of how the economy works and how increasing the minimum wage would rupture it. I will now refute some common arguments in favor of raising the minimum wage.

1. Increasing the minimum wage would reduce poverty
This is a funny one, as the exact opposite is true, as a study from the Federal Reserve Bank of Cleveland found that although low-income workers see wage increases when the minimum wage is raised, "their hours and employment decline, and the combined effect of these changes is a decline in earned income, minimum wages increase the proportion of families that are poor or near-poor." (https://www.clevelandfed.org/newsroom-and-events/publications/working-papers/working-papers-archives/1999-working-papers/wp-9919-the-effects-of-minimum-wages-throughout-the-wage-distribution.aspx)  

2. Increasing the minimum wage would reduce income inequality.
This is true, however income inequality is not necessarily a bad thing, I compared the living standards enjoyed by the poor and by the middle class to inequality measures from (https://www.manhattan-institute.org/html/inequality-does-not-reduce-prosperity-compilation-evidence-across-countries-6032.html#.VFclZfnF9hw) These comparisons consistently showed that once the developed nations of Europe, Asia, and the English-speaking world are distinguished from the developing world, there is a tendency for countries with more inequality to have higher living standards below the top. 

3.The current minimum wage is not high enough to allow people to afford housing.
This is somewhat true, however it is proven that increasing the minimum wage would increase the price of housing. In cities such as Los Angeles with a limited housing supply, raising the minimum wage but not increasing housing stock would lead to an increase in rental prices as "700,000 minimum wage workers will have more money to compete for the same low inventory of rental units," according to researchers from the University of California in Los Angeles.(http://www.scpr.org/news/2015/05/21/51883/minimum-wage-hike-could-increase-la-rents-economis/)

hopefully these examples proved that while groups like $15 now  do have good intent, the results would actually harm the people they are trying to desperately to help. Groups like these have no understanding of the economy, and they are the reason we may end up with a $30 big mac sometime in the future. Increasing the minimum wage would destroy a substantial amount of jobs in the United states, increase prices for everyday products, and create more impoverished. However these groups do not understand that, and i feel it is our duty, as the American people to better educate our students so they do not fall into this trap. I would now like to invite my opponents and supporters.


P.S how is my debate style? please provide feedback, because i always like to improve myself.
agsr1Hacker0northsouthkoreanatbaronsjoecavalry
  1. Who do you agree with?

    8 votes
    1. Proposition
      87.50%
    2. Opposition
      12.50%

Status: Open Debate


Arguments

  • VaulkVaulk 271 Pts
    I think artificially raising the minimum wage is going to create nothing but new problems.  There's nothing natural about doubling the national minimum wage in this fashion.  The current minimum wage is $7.25, so that means artificially raising it to $15.00 would more than double the current minimum wage.  The result would be a price hike on everything from Milk, Eggs, Bread and other standard staple human needs products.  Instead of $3.50 for a gallon of milk, we'd pay $7.00 or likely higher due to the added effects of doubling the minimum wage in such a substantial way.  The economy would eventually balance out but at first you could easily expect milk to soar to $10.00/gal to compensate for:

    1. The sudden unavoidable loss of employees.  Business will immediately have to begin paying the new wage but won't have the financial capital to back the sudden salary hike.  Businesses will be forced to begin immediate employee cutbacks to compensate and suddenly the price of your employees goes up, you lose employees, and yet the demand for the product remains the same.  So prices must increase to compensate or the business goes under.

    2. The sudden loss of employees due to loss of government subsidized support.  Because the pay increase is artificial, suddenly making $15.00/hr will disqualify innumerable amounts of Americans from Government subsidized programs like WIC, TANF, Medicaid and Medicare.  So employees get two choices, stay on government assistance and quit your job, or keep your job and lose your government assistance.  With the guaranteed price increase of basic products like Milk ect ect, citizens making minimum wage won't be able to afford it without government assistance...which they'll be disqualified for.

    This idea of hiking minimum wage is...retarded.  There's really no other way to aptly describe the idiotic ideology that has to be behind this movement.  This is a case of the "Has nots" against the "Has its", greed and jealousy are showing their ugly face in this battle for $15.00/hr.
    1Hacker0JuicyMelonTech
    "If there's no such thing as a stupid question then what kind of questions do stupid people ask"?

    "There's going to be a special place in Hell for people who spread lies through the veil of logical fallacies disguised as rational argument".

    "Oh, you don't like my sarcasm?  Well I don't much appreciate your stupid".


  • I agree. Job fairs should be implemented instead. Companies are always looking for new employees. The problem is that most people in poverty can't dress up properly for the interview, communicate with the company with the internet, etc. These problems keep poor people poor. 

    Socialism can be implemented a little to solve some problems. Reaganomics is a good example. But we have to remember that our society is still mostly capitalist and we shouldn't just go around implementing socialist values wherever we can.
    JuicyMelonTechnorthsouthkorea
  • The minimum wage should be raised in order to enforce a good living pay for employees.
  • The minimum wage should be raised in order to enforce a good living pay for employees.
    What about the 500,000 less jobs? A lot of the employees would get fired, so your argument is unfactual, please refer to my opening statement
  • a) The CBO report is based on survey data from businesses. Its not a a empirical study. Its going to conclude that job losses occur because it automatically assumes they do. 
    b) The thing is that historically there is no evidence that minimum wage hikes result in job losses[1]. In fact studies that analysis states that increased their minimum wages find that minimum wage increases are followed by stronger employment growth[2]. Minimum wage increase states in this decade have seen a third more job growth[2].
    c) Certain cities have increased their minimum wage to $15 and they have not experienced any harmful effects. In fact they all have experienced more job growth then other comparable cities that did not raise their minimum wages[3][4].
    d) There is a reason why advocates use the $12 and $15 wage levels. The reason is that raising the minimum wage to those levels would restore the inflation adjusted and productivity adjusted minimum wage to what it was back in the 1970's[5].
    e) There are many reasons why minimum wage increases have a positive impact on the economy and employment. 
    1- Increased productivity from workers working harder. Incentives matter.
    2- It shifts income towards the middle and poor classes who spend more of their income resulting in higher total demand and spending which results in more economic activity.
    3- Higher wages increase happiness and happiness increase productivity[6].
    4-Higher wages result in less employee turnover. Training new employees is costly and a company loses a lot of value when it has untrained employees working. 


    [1]http://cepr.net/publications/reports/why-does-the-minimum-wage-have-no-discernible-effect-on-employment
    [2]http://thinkprogress.org/economy/2014/07/03/3456393/minimum-wage-state-increase-employment/
    [3]http://economistsview.typepad.com/economistsview/2016/04/early-analysis-of-seattles-15-wage-law-effect-on-prices-minimal.html
    [4]https://research.stlouisfed.org/fred2/series/CALOSA7URN
    [5]http://www.epi.org/publication/15-by-2024-would-lift-wages-for-41-million/
    [6]http://www.washingtonpost.com/blogs/monkey-cage/wp/2014/05/14/does-a-higher-minimum-wage-make-people-happier/

    natbarons
  • Minimum wages should be raised. This increases business regulations and helps people receive more income and increases satisfaction of employees possibly.
  • The minimum wage is immoral, preventing those with the least valuable skills from participating in the job market.  It is also immoral because it is anti-freedom.
    DrCereal
  • NopeNope 96 Pts
    The minimum wage can help people and make things fair but ViceRegent has a point in that it limits freedom in place such as business. Fair opportunity vs freedom.
  • The purpose of the economy is not to satisfy your silly notions of fairness, but to efficiency distribute scarce goods based on voluntary exchange. And no, the people who lose their jobs due to your misquided desire to be “fair”, will not feel treated very fairly.
  • Fair opportunity = being denied opportunity because your skills are not worth hiring you only in the mind of a liberal at war with reality.
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