Debate - PROMPT The United States Federal Government should abolish the minimum wage Abolish to end the observance or effect of Minimum Wage the

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PROMPT The United States Federal Government should abolish the minimum wage. Abolish: to end the observance or effect of. Minimum Wage: the federal minimum wage as provided by the Fair Labor Standards Act The United States Federal Government should end the observance of the federal minimum wage as provided by the Fair Labor Standards Act
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AFRIMATIVE I) Is in direct conflict with the values of capitalism and freedom of choice in which America was founded A) State governments would still set individual minimum wages that would more correctly represent the cost of living in each individual state B) Just because there is no federal minimum wage, doesn’t mean that citizens have to be undercompensated for their work. B.1) Who would bus tables or wash dishes for $1 per hour? Probably no one B.1.a) People have the freedom to say NO! B.2) No one thinks to themselves, “I would do that job for free” unless it is for a very specific reason such as to gain experience in a field you might otherwise not be able to gain experience. II) Minimum wage hurts the economy A) Minimum wage costs the economy thousands of jobs A.1) Example A.1.a) If the government were to force a company to pay a janitor $7 per hour, that company might opt to not hire a janitor at all and have other employees pick up those duties A.1.b) Thus, a job in the economy is lost A.2) Minimum wage increases the likelihood that American companies will outsource jobs A.2.a) The logic here is simple: Why would American businesses pay a low qualified American worker $7 per hour when it could pay an equally or more qualified foreign worker $3? A.2.b) According to the Wallstreet Journal, It is estimated that 1.6 million American jobs have been outsourced since 2004 B) Minimum wage creates a competitive advantages for foreign companies and yet another obstacle for American companies to compete globally B.1) US trade deficit (increases every year which means we are importing more than we are exporting) B.2) With the rise of globalization and internet purchasing, American’s are able to purchase products from all over the world B.3) When a minimum amount is put on the cost of labor, American businesses must either pay more to produce the same product as foreign companies, driving up American prices B.4) People all over the world will be more likely to buy cheaper products not produced by American businesses, further hurting our economy C) Minimum wage increases prices and thus, the cost of living C.1) Abolishing the minimum wage will allow businesses to achieve greater efficiency at lower cost C.2) Example C.2.a) If a company has $80 to pay employee wages, it would only be able to hire 10 employees at a minimum wage of $8
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C.2.b) However if the company were allowed to only pay its employees $5 per hour, it could hire16 employees, thus providing greater task efficiency and better customer service C.3) Greater efficiencies and lowers costs mean lower prices of goods and services in the economy D) Minimum wage drives small companies out of business
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This note was uploaded on 04/04/2012 for the course COMST 102 taught by Professor Idk during the Spring '07 term at Washington State University .

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Debate - PROMPT The United States Federal Government should abolish the minimum wage Abolish to end the observance or effect of Minimum Wage the

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