On the authoritative minimum wage.

Assumptions: (1) That this debate is structured around the current going-ons of society ; (2) The United States can be the subject of this debate ; (3) This debate can refer to both a State imposed as well as a National minimum wage, as the Instigator has not stated otherwise. Introduction: My opponent has laid out a very nice argument for you obviously taken straight from an Economics class, as my opponent is correct in stating that the minimum wage, on paper, is economically unsound. However, many times other factors in a particular culture or society have implications that affect the way a system is supposed to work. For example, the current economic recession, the issue of outsourcing , America's problem with millions of undocumented workers, etc., have all factored into my reasoning as to why I am PRO in this debate. Contentions: 1. Abuse of the Labor Market A) Opponents of the minimum wage claim that its existence costs the labor market thousands of jobs, i.e. a business will hire less staff members because they can only budget a certain amount of money towards wages. This is an example of something that sounds good on paper, but in reality simply isn't true. The fact of the matter is, a business needs a certain amount of employees to run effectively. Legally, an employee can only work 40 hours a week without having to be granted Overtime compensation. Thus, it's highly unlikely that a manager would work his employees round the clock. Instead, he's going to hire the proper amount of people in order for his business to excel and be efficient. While maybe a FEW jobs may be lost, the likelihood of this is not nearly enough for you to concede to abolishing the minimum wage entirely. B) Without a minimum wage, management can abuse their workers by offering extremely low compensation. Sure the response to this is, "Well nobody would work for a wage that was inappropriate." This is complete nonsense. History shows us (see: The Great Depression) that people will work for what's available to them when they are desperate. Imagine if the minimum wage was abolished right now, and every major corporation decided to pay those already making minimum wage just $2/hour. Surely that is unfair and inappropriate in comparison with the overall Cost of Living today. So what would my opponent suggest? Everybody quit their jobs until demand forces employers to pay more? That is not necessarily an accurate response, one because job availability is already so scarce (see: Recession), and two because there are many undocumented workers or foreign workers with little to no skill who would be willing to work for a fraction of what typical Americans would. Thus, employers have the ability to completely abuse the job market. Further, with so many employees out of work or making so much less money, the economy would suffer GREATLY (as people would have no money to spend) and the recession would only get worse. 2. The minimum wage is necessary for many families. A) There are millions of adults who work for minimum wage in this country. These people rely on these jobs (sometimes having two) in order to pay the bills and raise their families. If the minimum wage were abolished, thereby reducing wage rates, surely these adults would be unable to afford basic necessities like homes, clothing , food, etc. Teenagers who don't have any expenses (or have their basic needs met by their parents) would be willing to work for less compensation, because it is not as crucial of an income to them as it would be for adults and adults with families. 3. Abolishing the minimum wage puts an unfair burden on many Americans. A) Unable to take care of themselves, families would be forced to receive government aid like Welfare and Unemployment. In addition to this being a huge kick in the face to many people who WANT to work (for their psychological and social well-being), it also puts a huge drain on tax payers and the economy at large. Those who have usurped the minimum wage paying jobs and who now pay taxes with their very low wages will contribute very little towards taxes. Instead, middle income families (those who don't make minimum wage) will be effected the most. The wealthy will pay very high taxes, it's true, but will not feel the effect as much as the middle class. B) Additionally, inflation would surely occur due to less people being able to be active in the market. Therefore, the rising prices to balance out costs and whatnot would put additional burdens on the middle class. C) On that note, competing nations would not have the same economic burdens, therefore being able to sell their products for less money. This would completely destroy the American economy, and further advance the very real problem of job Outsourcing. 4. The face of politics/tax distribution. A) Obviously, political legislation would have to greatly be revamped and modified in order to sustain the new economic situation. Keeping many people extremely poor while a few (presumably business owners, CEOs, etc.) prosper exponentially can lead to a massive class separation even greater than the one that already exists. This is repressive and counterproductive to American ideals of equality (or rather equal opportunity) and can hinder many advancements that this country can have socially, technologically, etc. B) More taxes going towards helping people survive means less money for social programs, scholarships, research, medical and technological advancements, urban planning , etc. 5. The facts. A) Studies have also shown that higher wages reduce employee turnover, raise productivity, and increase product quality and customer satisfaction. Four out of five small business owners say that a ten percent minimum wage increase would have either a positive effect or no effect on their business. The Fiscal Policy Institute agrees that raising the minimum wage is good for small businesses. As the study says, "There may be a Henry Ford effect at work here. If you pay workers more, they can buy more, boosting the overall economy, especially among small retail businesses." [1] B) "The federal minimum wage increase of 1996/97 was followed by the best low-wage labor market outcomes in decades. When that proposed increase was under discussion, opponents predicted massive job losses among those affected by the increase... Instead, the employment rates of the least advantaged workers soared to unprecedented levels, poverty rates fell to historic lows, particularly for minority populations, the least skilled workers, and single mothers. Low wages rose in step with productivity growth for the first time in almost thirty years. Note that I do not claim that the federal minimum wage increase was solely responsible for these outcomes… But Congress should take note: the 1996/97 increase complemented these conditions; it did not preclude them." -- Econmist Jared Bernstein [1] Conclusion: Like I said, economically speaking , an imposed minimum wage is non-sensical. However, in consideration with the current times, I think it's safe to say that a minimum wage is not only practical, but necessary. American workers, small businesses, and economists all agree that increasing the minimum wage is good for America. You should too. Sources: [1] http://www.dmiblog.com...