Argument for & Against Minimum Wage

The Fair Labor Standards Act guarantees all Americans a minimum wage for hours worked. Since its inception during Franklin Roosevelt's New Deal, the minimum wage has been a subject of controversy. Some argue that it constitutes an essential part of a modern economy while others argue that it hinders the very people it is supposed to assist. Knowing both sides of the argument will help you come to a decision for yourself.

Arguments For

Those in favor of a minimum wage argue that everyone who labors deserves a minimum wage. This is because all workers need a minimum amount of income to pay for basic necessities such as food and shelter for themselves and their families. Proponents of the minimum wage see business as far more powerful than labor and the minimum wage a necessary protection against potential abuses of the labor market. The last minimum wage increase elevated wages for over six million workers according to Bloomberg Businessweek.

Counter Arguments

Opponents of the minimum wage counter these claims by saying that very few people supporting themselves receive the minimum wage. On the contrary, opponents say, the minimum wage is largely the domain of minor employees and college students earning extra spending money. Further, the minimum wage rarely pays enough for anyone to cover their own living expenses unless they live in a place with a very low standard of living.

Arguments Against

Opponents of the minimum wage claim that, first and foremost, it costs Americans jobs. Employers allegedly cannot afford to pay certain employees the minimum wage or do not consider certain employees' work to be worth the minimum wage. Those at the bottom rung of the economic ladder are priced out of the economy by these laws. Some also argue that minimum wage laws are unethical because the government should not interfere in private contracts between labor and capital.

Counter Arguments

Proponents of the minimum wage argue that the minimum wage helps the broader economy by giving low-income workers more money to spend than they would have without it. This in turn creates more jobs for everyone. They also do not see the contract between labor and capital taking place on a level playing field, hence the need for government intervention. Finally, proponents counter argue that someone must still conduct labor and that employers must still hire people, regardless of minimum wage.

References

• Balanced Politics: Minimum Wage
• Joint Economic Committee Report: The Case Against a Higher Minimum Wage
• Joint Economic Committee Report: Raising the Minimum Wage: The Illusion of Compassion
• Aol. Jobs: Four Arguments for the Minimum Wage
• Bloomberg Business Week: More Ammo For A Higher Minimum
• United States Department of Labor: Minimum Wage