Raising The Minimum Wage

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Raising the Minimum Wage: The Negative Effects on Society I. Introduce the definition of minimum wage A. The minimum wage is one of the most controversial issues. B. Established in 1938, minimum wage raised eight times (Sims, 2002, p.264) 1. Raising the minimum wage increases the risk of future unemployment, prolongs the dependency of the welfare system, and reduces job benefits offered by employers. II. EPI opposes raising minimum wage. A. Increasing minimum wage causes four times more unemployment loss for uneducated employees (Archer, 2004, p.4) B. Minimum wage laws mostly harm teenagers and young adults because they typically have little work experience and take jobs that require fewer skills (Henderson, 2006, No. 550). 1. Economists Neumark and Nizalova found people in their 20’s worked less and earned less when exposed to long term minimum wage employment (Henderson, 2006, No. 550). 2. Increased minimum wage for teens without a high school diploma was responsible for over 114,000 fewer employed teens (Even, 2010, p. A15). III. Dependency on the welfare system increases due to the increase demand for more skilled workers. A. Mothers on welfare in states that raised their minimum wage remained on welfare 44 percent longer than mothers on welfare in states where it was not raised (Garfield, 1996). B. Families leaving welfare for minimum wage jobs, a living wage is still beyond Reach (Bailey, 2000, p. 36). 1. Odds of a welfare recipient getting a living wage job are 97 to 1 (Bailey, 2000, p.36) IV. To compensate for increased wages, employers cut costs in other forms of employee compensations A. Few minimum wage workers have employer-provided health insurance; employers have found other ways to adjust, such as cutting on-the-job training (Henderson, 2006, p. 550). 1. Minimum wages reduce training aimed at improving skills on

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