Kyle Murphy

Annotated Bibliography for the Right to a Minimum Wage

I. Introduction
The minimum wage has been steadily increasing for decades, however
American citizens are pushing for a jump, a big jump. They are fighting for a $15/hr
minimum wage with the main argument being the current minimum wage is not a
living wage meaning that the wages are insufficient at supporting a good living. I
disagree with this. Not only do I believe that the current minimum wage is enough
to support a living but I also believe that raising it is not the solution for alleviating
poverty, in fact, I believe it would exacerbate the issue.

II. Opposition Perspective

Their perspective: The minimum wage is too low to support a standard of
living which is believed to be a right, such as being able to afford cable, Netflix,
iPhones, and MacBooks. Luxuries that arent meant to be affordable to someone
earning the minimum wage. The fight for a living wage has been going on for
years, with current democratic presidential candidates using it as a part of their
platforms. It is believed that by raising the minimum wage, there would be more
money left to spend on goods, and more money in the economy makes for a
stronger economy. Though this is entirely dependent on having that money be spent
on American goods. It is also believed that it would lower the poverty rates and
allow more people to support themselves and not require government aid.

III. Writers Perspective

My perspective: Raising the minimum wage would cause more harm than
good to the national economy, including to those that the wage sets out to help by
not only reducing job turnover but by killing off small businesses and potentially
hurting employment rates. The minimum wage is a great idea in theory, requiring
business to pay enough for their employees to support a living. However, in
practice, it is often found that the minimum wage simply isnt enough. Why is this?
One big reason is the number of hours worked. The minimum wage is designed to
support a living for someone who is working a standard 40 hour work week but most
earners are merely part time workers. Apart from this, the minimum wage is often
considered not enough by those earning it because they run into debt and other
various money troubles. This is more likely due to the person than the amount of
money earned as poorer citizens often lack the financial education and budgeting
knowledge of the middle and upper classes. I believe the minimum wage should
stay as is because I feel it is enough to provide the bare necessities. It has been
found that most people who would benefit from a raise in the minimum wage are
not those in poverty, as those in poverty are generally unemployed altogether.
Furthermore, forcing companies to pay higher wages will make it more difficult for

those low skilled workers to find employment. The majority of low income earners
are the second or third earners in their homes, and they often come from
households with above average income. Therefore, a raise in the minimum wage
would actually benefit the middle to upper class citizens more than the
impoverished.

IV. Common Ground

The solution: Through expansion of the earned income tax credit, the U.S.
could be much more efficient at reducing poverty rates. In 2013, for a couple with
three children earned over $6,000 from the EITC. It is money that comes directly
from the government, not from businesses and is a simple way of using tax payers
money to benefit the American people instead of monopolistic businesses. In order
for this to work, more attention needs to be brought upon it, political parties need to
recognize its benefits are start petitioning for it. By expanding the EITC, minimum
wage could stay the same, meaning no drawbacks would have to be dealt with,
while at the same time we could be benefitting those who need the money the
most, the poor unskilled workers. The EITC also offers incentives, by encouraging
people to work harder and more hours, thus also aiding in reducing poverty. The
government already has the resources to do this, it simply needs to be put under
enough pressure to expand the program. It is estimated that in 2015, the
government will have lost $70bn to the EITC, which is why they are unwilling to
expand it.

VI. Concluding Statements

My prediction is that while expanding the earned income tax credit is the
most efficient way to help the impoverished today, it is unlikely to happen as it
doesnt have the political backing that the $15 minimum wage currently has. EITC
cannot be made possible until the general public is educated on what it is and how
it works and they start pushing the presidential candidates to expand it.

VII. Works Cited

Dillow, Chris. "Shibboleth Authentication Request." Shibboleth Authentication Request. Wiley Online
Library, 25 Dec. 2001. Web. 11 May 2016.

This Article presents some of the drawbacks to a minimum wage. Its actually
discussing the pros and cons of creating a minimum wage in the UK, but its main
points are still applicable to the U.S. It mainly brings up the adverse effects of

the wage increase, such as the lower employment rates, higher cost for

products due to inflation, and the plain fact that it would not be aiding the
majority of the poor. It states that the majority of UK citizens classified as
low pay are the second or third earners in their household, and that their
households are often above average in income. So the national minimum
wage would be helping the more affluent middle and upper middle classes
before it ever helped the truly poor.

Harvey, John T. "Raising Minimum Wage Is Not The Answer." Forbes. Forbes Magazine, 6 July
2014. Web. 25 Apr. 2016.
This article offers different viewpoints on the subject of should the minimum
wage be raised. On the one hand, there are people who say the minimum
wage should be raised offering compelling points such as how minimum
wage has not risen equally to the cost of living, and on the other hand there
are people who think the minimum wage should be removed all together.
The latter believe that if the minimum is no longer federally mandated, then
unemployment would virtually disappear and yes, some would have lower
wages, but there argument is any wage is better than no wage.

Hasset, Kevin A., and Michael R. Strain. "Why We Shouldn't Raise the Minimum Wage." AEI.
Los Angeles Times, 20 Mar. 2013. Web. 25 Apr. 2016.

This article examines multiple reasons as to why raising the minimum wage
would not help in lowering the percentage of American citizens living below
the poverty line. It explains how the majority of people earning minimum
wage are not the primary earners in their household. Only a small
percentage of citizens would actually benefit from a minimum wage increase.
It discusses new issues that would arise, such as higher unemployment rates
and more difficulty with getting your first job as companies have to shell out
more money. It then offers an alternative solution for alleviating poverty with
earned income tax credit.