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Noah Brown.docx - Noah Brown E110 English Composition...

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Noah Brown E110 English Composition September 27,2016 Morgan Voorhis Pros and Cons Of Raising Minimum Wages Hi everyone, I have made ten pros and cons of raising minimum wages, as I believe raising minimum wages can have its benefits as well as its downsides.I hope you enjoy reading this essay! The 10 Pros Raising the minimum wage would increase economic activity and spur job growth . The Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period. Economists from the Federal Reserve Bank of Chicago predicted that a $1.75 rise in the federal minimum wage would increase aggregate household spending by $48 billion the following year, thus boosting GDP and leading to job growth. A 1994 study by economists Alan Krueger, PhD, and David Card, PhD, compared employment in the fast food industry after New Jersey raised its minimum wage by 80 cents, while Pennsylvania did not. Krueger and Card observed that job growth in the fast food industry was similar in both states, and found "no indication that the rise in the minimum wage reduced employment." Increasing the minimum wage would reduce poverty. A person working full time at the federal minimum wage of $7.25 per hour earns $15,080 in a year, which is 20% higher than the 2015 federal poverty level of $12,331 for a one-person household under 65 years of age but 8% below the 2015 federal poverty level of $16,337 for a single-parent family with a child under 18 years of age. [ 7 ] [ 8 ] According to a 2014 Congressional Budget Office report, increasing the
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