7-4 Summative Assessment - Persuasive Essay PDF

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Summative essay about raising the minimum wage to $15...

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Running Head: The Minimum Wage Should be Increased to $15.00 an Hour

The Minimum Wage Should be Increased to $15.00 an Hour Melissa Morrison Southern New Hampshire University ENG 123: English Composition II 6/19/2020

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When adults reflect upon their very first paying job, where they were most likely paid minimum wage, for most that was as teenagers working a paper route, mowing lawns, or at a fast-food restaurant or a local grocery store, earning very little. In 1938, the Fair Labor Standards Act was passed, and the federal minimum wage was established. Minimum wage is defined as the lowest wage permitted by law or by a special agreement that companies could pay their employees. This wage should ideally provide enough income to secure housing, clothing, and food, but the current U.S. national minimum wage is a meager $7.25 an hour. Since 1938, there have been twenty-two increases in the federal minimum wage, with the most recent in 2009. However, since 2009 there has not been an increase in the minimum wage and the working class is struggling yet expected to manage the rising cost of living on an almost decade-old rate. Now more than ever is the time to raise the federal minimum wage because the current rate is simply not enough for a young adult or single income families to live comfortably. Raising the minimum wage will increase employee loyalty and retention, increase job satisfaction and morale, and will positively stimulate the economy and reduce poverty rates. Increasing the minimum wage would increase employee loyalty and retention while eliminating employees from seeking employment elsewhere, and employers would be able to retain quality staff. Employees face the difficult decision whether or not to leave a job they enjoy and exceed at in order to find an employer who pays more than the bare minimum. Many companies are already increasing their lowest pay and have noticed an increase in applicants along with the longevity of the current employees. In the article “United States: American Family Insurance group companies raise minimum pay to $20 per hour”, the American Family enterprise Chief People Officer stated, “As an organization committed to exceptional customer service, it is essential we invest in our employees who provide that service” (2020). When people

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are properly compensated, they are not only enticed to remain loyal with their current employer but also motivated to work harder, thus increasing production and quality. Increasing the minimum wage to $15 an hour would create better job satisfaction and build morale amongst peers and leadership. Most employees can agree that when they are properly compensated, both job satisfaction and overall workplace morale is boosted. Business owners must keep their employees engaged and excited to come to work every day. Companies in Connecticut and Maryland found two things are a must when it comes to successfully operating a business: Inventory and payroll. These business owners choose to increase the minimum wage in order to keep quality employees, and found doing so had increased both morale and incentivized employees to work harder (Woods, 2014). When employee morale is high and productivity is increased, the company witnesses higher profits for the employer. This creates a positive-feedback loop that is benefited on all levels of the company, from the customer to the CEO. Lastly, increasing the minimum wage will also positively stimulate the economy. Those who are paid more are able to spend more on consumables and services. This will create a higher demand for products, leading to increased production, and even job growth as companies create more positions to meet society’s demands. According to Sklar (2019), “Contrary to what critics predicted when the minimum wage was raised, our economy had unusually low unemployment, high growth, low inflation, and declining poverty rates between 1996 and 2000.” The United States should have an environment where people make enough to improve their living standards and better their lives instead of living paycheck to paycheck. Ideally, the minimum wage should gradually increase over the next four years to the desired $15 per hour. For most individuals, this is enough to support basic living essentials.

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A major debate pertaining to raising the minimum wage is the misconception it would be a disaster for everyone involved. There may be potential dire consequences for raising the minimum wage that we cannot foresee, but several states have already increased to $15 per hour and are reaping the benefits. An opposing argument theorizes that raising the minimum wage will lead to workers owing more in taxes and an increase in the price of certain goods. However, a study conducted in 2017 by researchers at the University of Washington found the opposite was true. “They found that the wage increases did not contribute to either higher food prices or lower food quality, determining that low-income families should be able to afford higher-quality diets than before the city's minimum wage increases” (“Minimum Wage” 2020). Thomas MaCurdy is an economics professor who is against raising the minimum wage as he indicates it would actually hurt the lower paid class. “One problem is that only about 5% of families have children and are supported by low-wage earnings; another is that higher minimum wages cause some workers to lose their jobs” (MaCurdy, 2015). Despite MaCurdy indicating the higher minimum wages would cause employees to lose their jobs, Holly Sklar found supporting data refuting his claims; “The unemployment rate fell from 5.6% in 1995 to 4% in 2000. Unemployment went down across the board across the country—including among people of color, teenagers, high school graduates with no college, and those with less than a high school education (Sklar, 2012). If this happens, there is no longer a need for physical labor and hourly wages. Increasing the federal minimum wage will not only retain hardworking loyal employees but will also boost their overall morale and job satisfaction ultimately leading to economic prosperity. All business owners and the government should allow the working class to have a reasonable standard of living. With a $7.25 minimum wage, a single mother or a young adult just graduating from high school would never be able to afford a decent place to live. When

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employees are passionate about their work, they work harder and more diligently, thus increasing production and stimulating the economy. It is the responsibility of our politicians, government officials, businesses, and managers to advocate for our workers to survive in today's economy. Raising the minimum wage should be an issue of doing what is ethically right for the working class, and less about how business owners feel.

Resources

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MaCurdy, T. E. (2015). Minimum wages as stealth tax. Hoover Digest, (3), 61+. Retrieved from https://link-gale-com.ezproxy.snhu.edu/apps/doc/A422626083/OVIC? u=nhc_main&sid=OVIC&xid=5b4efe0d Minimum Wage. (2019). In Gale Opposing Viewpoints Online Collection. Farmington Hills, MI: Gale. Retrieved from https://link-galecom.ezproxy.snhu.edu/apps/doc/PC3010999333/OVIC? u=nhc_main&sid=OVIC&xid=fad9b0d5 Sklar, H. (2012). Raising the Minimum Wage Will Reduce Poverty. In R. Espejo (Ed.), Opposing Viewpoints. Poverty. Detroit, MI: Greenhaven Press. (Reprinted from Raise the Minimum Wage to $10 in 2010, LetJusticeRoll.org, 2009, July 22) Retrieved from https://link-galecom.ezproxy.snhu.edu/apps/doc/EJ3010159411/OVIC? u=nhc_main&sid=OVIC&xid=faaa0fcb United States: American Family Insurance group companies raise minimum pay to $20 per hour. (2020, February 1). TendersInfo News . Retrieved from https://bi-galecom.ezproxy.snhu.edu/global/article/GALE|A612941482?u=nhc_main&sid=ebsco Woods, M. (2014). Industry Addresses Minimum Wage Hikes. FN: Footwear News, 70(14), 8....