Many economists have researched the outcome of the raise of the minimum wage, and they have come up with incredibly varied results. Alan Krueger, head of the White House Council of Economic Advisers, argues that "Increasing the minimum wage does not have significant effects on employment." While David Newmark (a professor of economics and director of the Center for Economics and Public Policy at the University of California, Irvine) and William Wascher (Deputy Associate Director in the Division of Research and Statistics at the Board of Governors of the Federal Reserve System) say that "Workers are made worse off overall when the minimum wage goes up." This is supported by Todd Palmer (founder and president of Troy-based Diversified Industrial Staffing and Diversified PEOple), who says that low wage jobs will be lost in the long run "as employers switch to labor-saving methods of production (i.e. automation, outsourcing overseas)". Because of this, Congress has yet to sway the minds of their opposing parties. Republicans argue that raising the minimum wage will kill jobs, while democrats argue that it will lift hundreds of people out of poverty. According to Congressional Budget Office (CBO), both arguments are correct. They say that "A $10.10 increase would lift 900,000 workers above the poverty line, but cost 500,000 jobs." Do the benefits outweigh the loss?
The raise in minimum wage would have consequence that are greatly related to what we learned in AP Human Geography. Things such as outsourcing, and exporting jobs pertain to chapters 9, 3, and 11. Economic factors relate to chapter 9, and my reference to Detroit references chapter 13.
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AuthorDaniel Bennett is a student in Mrs. West's AP Human Geography class, who finds domestic problems quite interesting, and would like others to be aware. Archives |