March Beginners' Tournament: The USFG should significantly raise the federal minimum wage

Argument 1: Raising the minimum wage would increase unemployment One of the greatest shortcomings of raising the minimum wages is that wage increases are often correlated with the decrease of such low-paying jobs hurting those who are supposed to be help with this wage increase. The extra money for these workers has to come from somewhere and such comes primarily from the businesses that employ them. In a 2014 study by the bipartisan Congressional Budget Office calculated that a half-million jobs would be lost if the minimum wage was increased to at least $10 an hour as this debate describes. [1] If you also look at the history of minimum wage, wage hikes do reduce employment. With the very first introduction of the minimum wage at $0.25, according to the US Department of Labor, the minimum wage led to 30,000 to 50,000 jobs lost which accounted for around 10-13% of workers who had jobs before the minimum wage. With the implementation in Puerto Rico, 120,000 jobs were lost within the year after the law was put into place. A review of the Minimum Wage Study Commission’s report in 1981 shows that a recent 10% increase in the federal minimum wage resulted in the reduction of teen employment by 1-3%. [2] With the added labor costs, businesses would have to raise their prices, cut employee hours and benefits, cut workers, or in the 21st century replace them with computers, machines and robots. Take for example BAXTER, a robot that costs less than the average worker’s salary at $25,000 capable of doing many unskilled jobs using pennies worth of electricity to operate [7]. Sure, it may not be as versatile as your average minimum wage worker, but if you look at computers, they developed from a programmer’s play thing in the 60’s to literally integrated into everything in society within a matter of decades. The Bank of England predicted that within the next 10 to 20 years, robots will take over 80 million jobs in the United States leaving those who are only capable of simple tasks out of the job market. By raising the federal minimum wage, you are only pushing employers to utilize more robots and computers in response to their raised labor costs. [3] Argument 2: Raising the minimum wage is ineffective at decreasing poverty. According to the Census Bureau, 34% of those living in poverty do not work. And if they don’t work, such individuals would not benefit from a minimum wage increase. And pertaining to my previous argument, if the minimum wage was increased, there will be less jobs inflating the percentage of people who will not benefit from a wage hike. [5] Another issue with raising the federal minimum wage is the fact that cost of living varies by state. The states where the cost of living is lower would be negatively affected by unnecessarily raising costs of businesses in areas where poverty is minimal. This map below illustrates areas where costs of living are high and low. [4] In addition, most minimum wage earners don’t even live in poverty. The average family income of a minimum wage earner is around $53,000. [6] Conclusion: I have proven that not only would increasing the federal minimum wage to $10 or above would be ineffective in reducing poverty, it would hurt businesses and ultimately the minimum wage workers through unemployment. Sources: [1] https://www.epionline.org... [2] http://object.cato.org... [3] http://money.cnn.com... [4] http://www.cnbc.com... [5] http://poverty.ucdavis.edu... [6] http://www.washingtonpolicy.org... [7] http://www.rethinkrobotics.com...