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Question Description

Topic:Should the Government Raise the Minimum Wage to Reduce Poverty?

There is ongoing debate about income inequality and poverty in America and one action being proposed to address this issue is to raise the minimum wage. For this assignment, you will answer the following questions.

  • Describe in general the issue that is being debated:
  • Has the average wage kept up with inflation?How do we calculate this?
  • What is the increase in average wages over this time period?
  • What is the increase in inflation over this time period?
  • Who wins if the inflation increase is larger than the average wage increase? Employers or employees?
  • Who wins if the average wage increase is larger than the inflation rate? Employers or employees?
  • Read two or more perspectives on this argument from both sides (support minimum wage increase, oppose minimum wage increase), and describe the authors perspectives on this topic.Links to articles are included below.At least 4 sentences here.
  • Analyze the evidence that each author uses to support his/her thesis: What types of evidence does he or she uses? Does the evidence support his or her thesis?At least four sentences here.
  • Evaluate the qualifications of the authors: What bias might the authors have?Four sentences.
  • Discuss your opinion on this topic: Do you agree or disagree with the authors?
  • Why? 6 sentences.

Average Hourly private employee wages from the Bureau of Labor Statistics

March 2006 – October 2016

Year

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2006

10.04

10.04

10.00

10.02

10.00

9.97

10.06

10.12

10.15

10.13

2007

10.13

10.13

10.10

10.09

10.08

10.11

10.10

10.11

10.09

10.07

10.02

10.02

2008

9.99

10.00

10.01

9.99

9.98

9.90

9.86

9.92

9.93

10.03

10.26

10.38

2009

10.36

10.34

10.38

10.39

10.38

10.31

10.33

10.32

10.31

10.30

10.28

10.29

2010

10.31

10.34

10.33

10.35

10.37

10.37

10.38

10.38

10.39

10.38

10.36

10.32

2011

10.33

10.31

10.25

10.23

10.23

10.24

10.25

10.20

10.20

10.24

10.21

10.22

2012

10.20

10.19

10.21

10.20

10.23

10.27

10.29

10.22

10.21

10.17

10.22

10.26

2013

10.25

10.21

10.25

10.30

10.30

10.32

10.30

10.30

10.30

10.31

10.32

10.30

2014

10.29

10.33

10.31

10.29

10.30

10.32

10.32

10.35

10.34

10.34

10.40

10.41

2015

10.54

10.53

10.54

10.55

10.54

10.51

10.53

10.57

10.59

10.59

10.60

10.61

2016

10.66

10.68

10.70

10.69

10.69

10.68

10.72

10.71

10.71(P)

10.72(P)

P = projected

C = corrected

Consumer Price Index for Jan 2006 – October 2016 from the Bureau of Labor Statistics

Year

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2006

198.3

198.7

199.8

201.5

202.5

202.9

203.5

203.9

202.9

201.8

201.5

201.8

2007

202.416

203.499

205.352

206.686

207.949

208.352

208.299

207.917

208.490

208.936

210.177

210.036

2008

211.080

211.693

213.528

214.823

216.632

218.815

219.964

219.086

218.783

216.573

212.425

210.228

2009

211.143

212.193

212.709

213.240

213.856

215.693

215.351

215.834

215.969

216.177

216.330

215.949

2010

216.687

216.741

217.631

218.009

218.178

217.965

218.011

218.312

218.439

218.711

218.803

219.179

2011

220.223

221.309

223.467

224.906

225.964

225.722

225.922

226.545

226.889

226.421

226.230

225.672

2012

226.665

227.663

229.392

230.085

229.815

229.478

229.104

230.379

231.407

231.317

230.221

229.601

2013

230.280

232.166

232.773

232.531

232.945

233.504

233.596

233.877

234.149

233.546

233.069

233.049

2014

233.916

234.781

236.293

237.072

237.900

238.343

238.250

237.852

238.031

237.433

236.151

234.812

2015

233.707

234.722

236.119

236.599

237.805

238.638

238.654

238.316

237.945

237.838

237.336

236.525

2016

236.916

237.111

238.132

239.261

240.229

241.018

240.628

240.849

241.428

241.729

Increase in average wages = ((average wage October 2016 – average wage Jan. 2006)/average wage Jan. 2006) x100

Increase in inflation = ((cpi October 2016 – cpi Jan. 2006)/ cpi Jan. 2006) x 100

REFERENCE ARTICLES

What’s best at Reducing Poverty? An Examination of the Effectiveness of the 2007 Minimum Wage Increase.http://www.epionline.org/study/r124/

Can Raising the Minimum Wage Reduce Poverty and Hardship?

https://www.epionline.org/studies/can-raising-the-minimum-wage-reduce-poverty-and-hardship/

Won’t increasing minimum wage hurt the poor? http://www.usnews.com/opinion/blogs/economic-intelligence/2013/03/11/raising-the-minimum-wage-wont-help-the-poor

The Impact of a $10.10 Federal Minimum Wage.

http://www.epi.org/publication/raising-federal-minimum-wage-to-1010/

Is There Consensus in Favor of Wage Mandates?

http://www.epionline.org/study/r142/

2 Parties Place Political Focus on Inequality, by Jeremy W. Peters, The New York Times.http://www.nytimes.com/2014/01/09/us/politics/republicans-move-to-reclaim-poverty-fighting-mantle.html?hpw&rref=politics&_r=0

http://www.pewresearch.org/fact-tank/2013/07/19/who-makes-minimum-wage/

From the Center for American Progress:

http://www.americanprogress.org/issues/religion/report/2013/12/10/80780/real-family-values-raising-the-federal-minimum-wage/

https://www.americanprogressaction.org/issues/economy/news/2013/12/03/80222/raising-the-minimum-wage-would-help-not-hurt-our-economy/

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