Académique Documents
Professionnel Documents
Culture Documents
Jan/Feb 2015
Table of Contents
Table of Contents
Table of Contents .................................................................................................................................................... 1!
Definitions............................................................................................................................................................... 8!
Definition of living wage. BG .................................................................................................................... 8!
Living wage + its implications defined. LSS. ............................................................................................. 8!
Living wage defined. LZ............................................................................................................................. 8!
Living wage defined. LZ............................................................................................................................. 9!
Living wage is distinct from the minimum wage. LZ. ............................................................................... 9!
Living Wage (as a movement) defined. LSS. ........................................................................................... 10!
Living wage is calculated by looking at seven key expenditures. LSS. ................................................... 10!
Living wage is distinct from minimum wage. LSS. ................................................................................. 11!
Topic Analysis ...................................................................................................................................................... 12!
Laying the Foundation .......................................................................................................................................... 25!
A brief history of the federal minimum wage. LZ. ................................................................................... 25!
Living wage movement based on family wage campaigns. LSS.............................................................. 26!
There are two major proposals to raise the minimum wage considered by lawmakers. LZ..................... 26!
A closer examination of the $10.10 option. LZ. ....................................................................................... 26!
A closer examination of the $9.00 option. LZ. ......................................................................................... 27!
A brief history of minimum wage laws in the world. LZ. ........................................................................ 27!
Key features of a minimum wage. LZ. ..................................................................................................... 28!
Privatization is what prompted increased living wage laws. LZ. ............................................................. 29!
Recognition that the minimum wage cant support families drives living wage laws. LZ. ..................... 29!
Three reasons for rise of living wage movement. LSS. ............................................................................ 30!
History of national minimum wage in the UK. LSS................................................................................. 30!
Over 1.2 million workers paid below national minimum wage prior to introduction. LSS ..................... 31!
Discrepancies in UK earning statistics troublesome for economic institutions. LSS. .............................. 31!
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Living wage proposal in North Carolina proposed $14.63 an hour. LSS. ................................................ 32!
Living wage proposal in Minnesota proposed $15.37 an hour. LSS. ....................................................... 33!
Living wage proposal in Tennessee proposed $11.15 an hour. LSS. ....................................................... 33!
Minimum wage insufficient, sparking the living wage movement. LSS. ................................................. 34!
Affirmative Evidence ............................................................................................................................................ 35!
Polls .................................................................................................................................................................. 36!
Across all groups, including the rich and the conservatives, people support raising the national minimum
wage. LZ. .................................................................................................................................................. 36!
Even small business owners agree, the ones most affected by an increase in the minimum wage. LZ. . 36!
Very few people want to eliminate the minimum wage. LZ. ................................................................... 38!
Americans are currently disengaged form their jobs costing the U.S. as much $550 billion. Polls prove.
BG ............................................................................................................................................................. 38!
Economy ........................................................................................................................................................... 39!
An analysis of states that raised the minimum wage compared to states that didnt shows that states with
a higher minimum wage had higher economic growth. LZ. ..................................................................... 39!
A nonpartisan analysis of the issue shows that nearly all economic indicators increased when the
minimum wage was increased. LZ. .......................................................................................................... 39!
An increase in the minimum wage would not significantly affect the federal budget. LZ....................... 41!
The effects of a $9.00 minimum wage. LZ. .............................................................................................. 42!
The effects of a $10.10 option. LZ. .......................................................................................................... 43!
Raising the minimum wage increases the employment of higher wage workers. LZ. ............................. 44!
Low wage workers are more likely to spend than any other income group. LZ. ..................................... 44!
An increase in the minimum wage would provide an additional $35 billion to the economy. LZ........... 45!
Implementing a living wage actually benefits companies thus helping the economy. BG ...................... 46!
Raising wages helps local businesses and the local economy. BG........................................................... 46!
Raising wages helps scrupulous businesses compete against those that cut corners in order to decrease
costs. BG ................................................................................................................................................... 47!
Minimum wage is not sufficient. Only living wage can improve the lives of the common American. BG
................................................................................................................................................................... 48!
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Minimum wage is not sufficient. More evidence proves that minimum wage cannot keep up with
inflation. BG ............................................................................................................................................. 48!
Minimum wage is not sufficient. Even more evidence proves. BG ......................................................... 49!
Living wage laws benefit working families with few or no negative effects of the economy at large. BG
................................................................................................................................................................... 49!
More studies prove that living wages help the economy at large by raising productivity. BG ................ 51!
NMW conducive to employment retention. LSS. ..................................................................................... 52!
NMW has potential to alleviate poverty. LSS. ......................................................................................... 53!
Stopping Crime ................................................................................................................................................. 54!
Poverty causes violence and crime. BG .................................................................................................... 54!
The US demonstrates a good example of how poverty has empirically caused crime. BG ..................... 54!
The root cause of poverty in the United States is the lack of social benefits to help those in poverty. This
demonstrates the need for a living wage. BG ........................................................................................... 55!
Minimum wage does not prevent poverty only living wage can effectively fight poverty. Galsmeier
gives specific numbers on wages for multiple states. BG ........................................................................ 56!
Poverty leads to youth violence by excluding social supports. BG .......................................................... 58!
Poverty disrupts family life, thus causing more crime. BG ...................................................................... 59!
Poverty forces people to become criminals because they do not have the means to escape poverty and
become productive members of society. BG ............................................................................................ 60!
Poverty is the key link to crime. Nothing else matters nearly as much. BG ............................................ 61!
Studies prove that poverty is the key link to crime. BG ........................................................................... 62!
Helps Women ................................................................................................................................................... 63!
Women are disproportionately harmed by low wages. SBH. ................................................................... 63!
Women of color are especially effected by a low wage. SBH.................................................................. 63!
Increasing the minimum wage would help women workers. SBH. .......................................................... 64!
Those in poverty are mostly women and children. SBH. ......................................................................... 65!
Raising the minimum wage is a way to get women out of poverty and help increase their pay. SBH. ... 66!
Raising the minimum wage would benefit women. LZ. ........................................................................... 67!
NMW benefits women. LSS. .................................................................................................................... 67!
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Small businesses are harmed in the process because price increases in wage to workers disincentives
actual start ups. SBH. ................................................................................................................................ 82!
UK NMW only impacted 6-7% of workers. LSS. .................................................................................... 82!
Living wages campaign suffers same ills as predecessors; destined to fail. LSS. .................................... 83!
Government Coercion Bad ............................................................................................................................... 84!
Even if raising the minimum wage is moral, having the government force it is wrong. LZ. ................... 84!
Wage Slavery/Capitalism Kritik ....................................................................................................................... 86!
Living wages normalizes the wage system and perpetuate wage slavery. This perpetuates capitalist
ideologies. SBH. ....................................................................................................................................... 86!
With capitalism comes exploitation and other bad impacts. SBH. ........................................................... 88!
The way to remove this capitalist ideology is through taking sides in the ongoing class struggle. SBH. 89!
Capitalism causes a multitude of bad impacts. SBH. ............................................................................... 90!
EITC Counterplan ............................................................................................................................................. 91!
What EITC is. SBH................................................................................................................................... 91!
How the EITC and CDC work. SBH. ....................................................................................................... 92!
The EITC works to increase productivity, decreases how many people need welfare, etc. SBH. ........... 93!
The EITC may improve the health of infants. SBH.................................................................................. 94!
EITC boosts childrens education. SBH. .................................................................................................. 95!
EITC boosts work effort of parents. SBH................................................................................................. 97!
EITC reduces poverty. SBH. .................................................................................................................... 98!
Harms Minorities/Youth ................................................................................................................................. 100!
Huge disparities in how much women of color are paid and others. SBH. ............................................ 100!
Living wage harms minorities and youth of color. It removes the chance to learn and become better in a
field. SBH. .............................................................................................................................................. 100!
Black and Hispanic teens are more likely to become idle. SBH. .......................................................... 101!
Employers will look for higher skilled workers making it harder for youth to get a job. SBH.............. 101!
For every 10% increase in the minimum wage, minority employment goes down 3.9% and youth
employment 6.6%. SBH. ........................................................................................................................ 102!
If employers do not fire employees, they will increase prices. SBH. ..................................................... 102!
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For every 10 % increase in the minimum wage, there will be a 4% increase in food and a .4% increase in
prices overall. SBH. ................................................................................................................................ 103!
An increase in prices makes the living wage once again insufficient funds to live. SBH. .................... 103!
Universal Basic Income Counterplan ............................................................................................................. 104!
Universal basic income ends poverty. SBH. ........................................................................................... 104!
How UBI would be funded in US. SBH. ................................................................................................ 105!
3 benefits to UBI. SBH. .......................................................................................................................... 106!
UBI removes poverty and is a bargaining power for workers. SBH. .................................................... 106!
Its universality avoids a state that controls people. SBH. ..................................................................... 107!
Affirmative Counters .......................................................................................................................................... 108!
AT: Creates Jobs/Job Loss .............................................................................................................................. 109!
Removing the minimum wage actually costs many jobs. LZ. ................................................................ 109!
Economists Card and Krueger concluded that there was no loss to employment from a modest increase
in wages. LZ............................................................................................................................................ 109!
Studies cant change peoples minds because the debate is too politically charged. LZ........................ 110!
Convention economic analysis doesnt work when analyzing the minimum wage. LZ. ....................... 110!
Increasing wages does not reduce employment. BG .............................................................................. 111!
A decreasing demand for labor does not necessarily mean that employees are harmed. In fact they
actually get more free time. BG .............................................................................................................. 111!
Early studies prove that living wage does not decrease employment. BG ............................................. 112!
Studies prove that living wage does not decrease unemployment. BG .................................................. 113!
The only study that proves that job loss occurs is the Neumark and Adams study. However, this study is
completely flawed. BG ........................................................................................................................... 114!
The CBO report overstates the loss in employment. LZ. ....................................................................... 116!
Unemployment did not increase in UK after NMW introduction. LSS. ................................................ 117!
AT: Private Charities ...................................................................................................................................... 118!
A government should guarantee the minimum wage, not private charities. LZ. .................................... 118!
AT: Living Wage Costs Gov $ ....................................................................................................................... 120!
A living wage does not increase government contracts. BG .................................................................. 120!
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Definitions
Definitions
Definition of living wage. BG
Investopedia. Living Wage. 2014. http://www.investopedia.com/terms/l/living_wage.asp.
Investopedia is a website owned by Forbes Digital. It is focused on teaching people
the basics of Finance.
A theoretical wage level that allows the earner to afford adequate shelter, food and the other necessities of life.
The living wage should be substantial enough to ensure that no more than 30% of it needs to be spent on
housing. The goal of the living wage is to allow employees to earn enough income for a satisfactory standard of
living.
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Definitions
receiving city contracts, and thus taxpayers' money, must pay its workers a wage far above the federal
minimum, usually between $9 and $11 an hour. These regulations often apply to employees at companies to
which municipalities have outsourced tasks like garbage collection, security services and home health
care. Low-wage workers in the private sector - in restaurants, hotels, retail stores or the like - have been
unaffected. Their pay stays the same.
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Definitions
Housing and Utilities. This calculation comprises the monthly rent and utilities on an apartment or home
that meets minimum standards of decency. The rent is based on the 1998 U.S. Department of Housing
and Urban Development (HUD) fair market rents for the Memphis Metropolitan Statistical Area (MSA)--$395 per month for a one-bedroom and $465 per month for a two-bedroom apartment.
A family with one child is assumed to have a pre-school child who attends day care all year. A family with two
children is assumed to have one pre-school child and one school-age child. The school-age child uses a day care
facility during vacations and summers.
Child Care. The cost of child care is calculated for families having young children, using the 75th
percentile of the Tennessee Department of Human Services [1997] estimates of the cost of child care:
$3,854 for one child fulltime in child care.
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Food. Typically, the living wage campaigns use the U.S. Department of Agriculture's [1997] Low-Cost
Food Plan---a nutritionally better plan than the Thrifty Food Plan used to calculate official poverty
thresholds.
Transportation. Since Memphis, like most American cities, has a very weak public transportation
system, the living wage assumes that the adults will drive a car to work. The cost of running a car for
work and errands is $1,887 for a one adult-worker family and $2,516 for a two adult-worker family.
Medical Care. The cost of medical care is the cost of insurance and deductibles in the TennCare
(Medicaid) insurance program for Tennessee [Bureau of TennCare 1999].
Clothing and Personal Care. Decent clothing and grooming products are real necessities for holding a
job and for regular social contacts at churches, schools, and community organizations.
Taxes. The taxes include the Tennessee sales tax for Memphis on food, clothing, and personal products,
plus Social Security taxes and income taxes. The federal income tax is adjusted for the approximate
impact of the Earned Income Tax Credit.
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Topic Analysis
Topic Analysis
Lawrence Zhou
This topic was the camp topic at a couple major camps, such as UNT, which means that a lot of debaters will
have a lot of prep over this topic already. This topic has the potential to address so many relevant issues within
todays society and has tons of topic literature on both sides. It is politically relevant, with bills concerning
living wage being debated in the House and Senate recently, socially relevant, with huge discussions and
debates by individuals and massive think tanks, philosophically relevant, with huge swaths of literature on both
sides of the issue. And it has arguments for every type of debater: philosophical arguments, policy/LARP
arguments, arguments about economic theories, and access to some critical argumentation. This topic analysis
will focus mainly on stock arguments/positions.
Definitions
What is a living wage? Well, according to Merriam-Webster (http://www.merriamwebster.com/dictionary/living%20wage), a living wage is: an amount of money you are paid for a job that is
large enough to provide you with the basic things (such as food and shelter) needed to live an acceptable life.
This document from The American Federation of Labor and Congress of Industrial Organizations tries to define
a living wage by comparing it to the federal minimum wage.
Living Wage Laws: Answers to Frequently Asked Questions. AFL-CIO Department of Public Policy. October
2000. http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1022&context=laborunions
Living wage laws are measures that set specific wage rates for discrete groups of workers. They differ
from state and federal minimum wage laws both in the wage level they require and in coverage.
Federal and state minimum wage laws prescribe lower wage levels than living wage laws but cover
virtually all employers. Living wage laws set much higher wage rates but cover a much narrower and
smaller group of employers; they generally apply to companies that have service contracts with the city
or county government or those that receive certain forms of financial assistance from the government.
But that definition doesnt really explain why a living wage is really needed as a distinct wage mandate. I mean,
why doesnt the minimum wage cover it all?
Living Wage Laws: Answers to Frequently Asked Questions. AFL-CIO Department of Public Policy. October
2000. http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1022&context=laborunions
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Topic Analysis
The minimum wage is no longer a family-supporting wage. In the past, the minimum wage provided
enough income to lift a family of three out of poverty. During the 1960s and 1970s, the annual earnings
of a full-time, year-round minimum wage worker roughly equaled the poverty level for a family of three.
The minimum wage, however, remained unchanged at $3.35 an hour from 1981 until April 1990, while
the cost of living rose steadily; thus, minimum wage earnings slipped significantly below the poverty
level. Recent increases have not restored all the lost value. Today, full-time, year-round minimum wage
earnings are nearly 20 percent below the poverty level for a family of three. Because the minimum wage
no longer supports families, we need to rely on an arsenal of additional strategiesincluding policies
using the governments power of the purseto raise wages for workers at the bottom.
So, people have begun proposing a living wage, that actually helps people above the poverty level.
Living Wage Laws: Answers to Frequently Asked Questions. AFL-CIO Department of Public Policy. October
2000. http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1022&context=laborunions
Unlike the federal minimum wage, which produces earnings below the poverty level, a living wage is a
pay rate designed to ensure that covered workers earn wages at or above the poverty line. Though living
wage ordinances vary in their wage rates, the level they typically set is the hourly wage a full-time, yearround worker must earn to bring a family of four out of poverty. The U.S. Department of Health and
Human Services 2000 poverty guideline for a family of four was $17,050. To bring a family of four
above this poverty line, a full-time, year-round worker would need to earn an hourly wage of $8.20.
Although a living wage is still a low wage, the extra disposable income available to a full-time living
wage worker compared with a full-time minimum wage worker is substantial. According to calculations
by the Center on Budget and Policy Priorities, a worker who has two children and who works full-time,
year-round at the federal minimum wage of $5.15 an hour has a total net income of $13,781 (after taking
into account payroll taxes and the Earned Income Tax Credit). At an hourly wage of $8.20, that same
worker with two children would have a total income of $18,720. The fulltime worker earning the living
wage has nearly $5,000 more than a minimum wage worker to spend on education, health care and
other necessities of daily life.
Obviously, the above source is a bit biased as it really wants a living wage, and it is a bit outdated, but it
probably answers the question the best. The living is exactly what it sounds like: its a wage that allows
someone to live according to standards considered basic, and it is distinct from the minimum wage because the
minimum wage doesnt necessarily guarantee that the wage will be sufficient to sustain.
Now lets talk about current debates about living wage. The most relevant issue in todays debate about the
living wage is to merely adjust the current minimum wage to a higher wage. Today, in the United States, the
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Topic Analysis
most relevant piece of legislation is The Fair Minimum Wage Act (H.R. 1010), a piece of legislation that
Representative George Miller drafted in 2013. The following describes what the act entails.
The Fair Minimum Wage Act (H.R. 1010). Committee on Education and the Workforce. Democrats.
http://democrats.edworkforce.house.gov/issue/fair-minimum-wage-act
It has been seven years since minimum wage workers saw an increase in their paycheck. Passed by a
Democratic Congress in 2007, this increase gave as many as 13 million workers a much needed pay
raise after a decade stuck at $5.15 per hour. Despite this, the real value of the minimum wage today
buys less than it did in 1956. In addition, workers who rely on tips havent seen an increase in their
wages since 1991. The required pay for tipped workers, excluding tips, has been stuck at a paltry $2.13
per hour for 21 years. And, the federal minimum wage doesnt automatically rise with inflation. Its time
to raise the minimum wage. The Fair Minimum Wage Act (H.R. 1010) will increase the minimum wage
in three steps, from $7.25 to $10.10 per hour. The rate will then be indexed to inflation each year
thereafter. In addition, the legislation will increase the required cash wage for tipped workers in annual
85 cent increases, from todays $2.13 per hour until the tip credit reaches 70 percent of the regular
minimum wage.
This is probably the most relevant example relating to the living wage within todays society and gives a good
idea of how this debate plays out in Washington. Doing additional research on various pieces of legislation from
different states will help develop a better understanding of what the living wage looks like in the real world.
Affirmative
The affirmative has a fairly compelling thesis and can rely on a couple of different avenues to affirm.
Rights/Dignity
This is probably the most intuitive argument and argues that the minimum/living wage is necessary to protect
the dignity of the workers.
Guy Davidov [Faculty of Law, Hebrew University of Jerusalem]. A Purposive Interpretation of the National
Minimum Wage Act (2009). Modern Law Review, Vol. 72, pp. 581-606, 2009. Available at SSRN:
http://ssrn.com/abstract=1549679
A second major justification for minimum wage laws relies on the concept of dignity. Respect for the
dignity of the worker as a human being dictates that human labour should not be sold for less than a
certain minimum. The idea that labour should not be regarded merely as a commodity or article of
commerce62 represents a long-standing understanding that labour power cannot be separated from the
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self. Since human beings are not things and cannot be bought and sold as such, neither can their labour
power.63 This does not mean that we cannot or should not sell our labour power for a price, but it does
mean that some limitations are necessary, and labour and employment regulations accordingly try to
protect our health and our rights at work.64 Some of these regulations are designed to ensure respect for
our dignity as human beings; anti-discrimination laws and limitations on dismissals, for example, have
been explained on this basis.65 The minimum wage can be seen in a similar light.
One way that it protects rights/dignity, is that it protects the people at the bottom of the socio-economic ladder.
Roos, Dave. "How Minimum Wage Works" 18 May 2009. HowStuffWorks.com.
<http://money.howstuffworks.com/personal-finance/budgeting/minimum-wage.htm> 03 December 2014.
The most common argument in support of the minimum wage is that it protects the workers at the lowest
rung of the socio-economic ladder. These workers, many of whom represent marginalized groups
(women, minorities, youth workers, the disabled, and so on), simply don't have the bargaining power to
fight for a minimum living wage without government intervention.
This is a highly intuitive argument that many people believe in and thus, represents an effective argument to
pull on the heartstrings of the judges. However, a lot of these arguments about protecting the dignity of
employees seem to implicitly rest on the empirical fact that it actually does protect these people, but relies on a
separate empirical claim. This is especially important if the negative brings up strong attacks about how it hurts
the economy. If the negative wins these arguments, they can also prove how the living wage doesnt really
protect dignity. This means that affirmatives taking this position do also have to be prepared to defend
economic arguments as well.
Economy
There are a lot of different economy arguments that debaters can make about why a living wage is good for the
economy. I wont cover all of them, because there are too many to cover, but Ill cover a couple of the more
common arguments.
A pretty common argument is that increasing the minimum wage will boost the economy.
David Cooper [joined the Economic Policy Institute in July 2011. He conducts national and state-level research
on a variety of issues, including employment and unemployment, poverty, the minimum wage, and wage and
income trends. He also provides support to the Economic Analysis and Research Network (EARN) on datarelated inquiries and quantitative analyses. David has been interviewed and cited for his research on the
minimum wage, poverty, and U.S. economic trends by local and national media, including The New York
Times, The Washington Post, The Los Angeles Times, U.S. News and World Report, CNBC, and NPR. His
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Topic Analysis
graduate research focused on international development policy and intergenerational social mobility. He has a
masters in public policy from Georgetown University]. Raising the Federal Minimum Wage to $10.10 Would
Lift Wages For Millions and Provide a Modest Economic Boost. Economic Policy Institute Briefing Paper.
December 19, 2013. Briefing Paper #371. http://s1.epi.org/files/2014/EPI-1010-minimum-wage.pdf
Economists generally agree that low-wage workers are more likely than any other income group to
spend any additional earnings they receive, largely because they must in order to meet their basic needs.
Higher-income individuals, corporations, and beneficiaries of corporate profits are more likely to save at
least a portion of any additional income. Thus, in a period of depressed consumer demand, raising the
minimum wage can provide a modest boost to overall economic activity because it shifts income to
workers who are very likely to spend it immediately. Indeed, recent research from the Federal Reserve
Bank of Chicago finds that raising the federal minimum wage to $10 could increase U.S. GDP by up to
0.3 percentage points in the near term3 (Aaronson and French 2013).
Our research shows that raising the federal minimum wage to $10.10 by 2016 would provide an
additional $35 billion in wages over the phase-in period to directly and indirectly affected workers, who
are likely to then spend that additional income. This projected rise in consumer spending would provide
a modest boost to U.S. GDP, even after accounting for the increased labor cost to businesses and the
potential for small price increases for consumers. Using standard fiscal multipliers, we would expect that
increasing the federal minimum wage from $7.25 to $10.10 would generate a net increase in economic
activity of $22.1 billion over the phase-in period. This additional GDP would support roughly 85,000
new jobs.4 As shown in Appendix Table 1, increasing the federal minimum wage would generate jobs in
every state. (As noted previously, detailed state-level demographic information on each states affected
workers is available at http://www.epi.org/files/2013/minimum-wage-state-tables.pdf.) Appendix Table
2 details the economic effects of each of the three incremental increases.
An increase in the minimum wage would also probably help make employees more productive.
Boushey, Heather, Executive Director and Chief Economist, Washington Center for Equitable Growth.
"Understanding How Raising the Federal Minimum Wage Affects Income Inequality and Economic Growth Washington Center for Equitable Growth." Washington Center for Equitable Growth. The Washington Center
for Equitable Growth, 12 Mar. 2014. Web. 10 Dec. 2014. <http://equitablegrowth.org/research/understandingthe-minimum-wage-and-income-inequality-and-economic-growth/>.
One reason that employment has not been shown to fall due to raising the minimum wage is because
higher wages can make workers more productive and therefore more valuable to their employer.
Economists call this the efficiency wages theory. There is an extensive literature on efficiency wage
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Topic Analysis
theory, with notable contributions Nobel Laureates Joseph Stiglitz and George Akerlof, which suggest
that paying more than the market-clearing wage can make firms more productive.
As the White House pointed out last week, higher wages can boost productivity, increase morale,
reduce costs, and improve efficiency. Here are just two academic studies that prove these points. John
Schmitt, a Senior Economist at the Center for Economic and Policy Research, finds empirical economics
research suggesting efficiency gains. And in a 2011 study, Georgia State University economists Barry
Hirsch and Bruce Kaufman, along with Tetyana Zelenska from Innovations for Poverty Action,
examined the effect of a federal increase in the minimum wage on 81 restaurants in Georgia and
Alabama. In their survey, managers reported that they could identify possible non-wage savings and
productivity improvements in response to the minimum-wage regulations. It is possible that lower costs
stemming from these changes could outweigh the costs of paying a higher minimum wage.
Finally, an increase in the minimum wage would decrease turnover.
Boushey, Heather, Executive Director and Chief Economist, Washington Center for Equitable Growth.
"Understanding How Raising the Federal Minimum Wage Affects Income Inequality and Economic Growth Washington Center for Equitable Growth." Washington Center for Equitable Growth. The Washington Center
for Equitable Growth, 12 Mar. 2014. Web. 10 Dec. 2014. <http://equitablegrowth.org/research/understandingthe-minimum-wage-and-income-inequality-and-economic-growth/>.
In addition, its possible that a higher minimum wage could make staying in ones job more attractive
and thus reduce turnover costs. A 2013 working paper by UMass-Amherst economist Arindrajit Dube,
University of North Carolina, Chapel Hill economist William Lester, and UC-Berkeley economist
Michael Reich finds that a higher minimum wage leads to fewer so called hires and separations, or
worker turnover. Other empirical studies suggesting that a higher minimum wageor a living wage
covering basic needscan reduce labor turnover include studies of workers in San Francisco(including
airport and homecare workers) and Los Angeles. Lower turnover costs could potentially allow
businesses to overcome the increased cost of paying a higher wage.
There are tons of other economic arguments, such as arguing that it boosts employee spending power and helps
familys better support their children among others. All of these stem from the very intuitive idea that increasing
the minimum wage gives people more money so they can live a better life.
From the economy arguments, a lot of different advantages can be crafted for why improving the economy is a
good thing. However, most major utilitarian arguments rely on winning that a living wage is good for the
economy. It is, in other words, the internal link, for most other advantages in the round. The economy is good
because it helps people, gives people higher standards of living, makes people more happy, stops war, etc.
Besides, very few people would ever argue that boosting the economy is a bad thing. In order to be successful
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Topic Analysis
with this position, affirmatives will have to do a lot of preparation work that proves that the economy positions
flow affirmative. They will have to be prepared to answer common objections to their positions as well as a
variety of negative disadvantages towards the economy. Smart negatives will be able to take small issues and
make them huge deals that devastate the affirmative. To be prepared to win the economy position will require
massive amounts of preparation work.
Equality
Equality based positions are sometimes employed to justify raising the minimum wage to a living wage. These
would most likely take the form of a more Rawlsian position that argues for protecting the least advantaged.
One common position argues that a living wage would overall reduce economic inequality, and thus reduce
inequalities overall. One major source of inequality is the fact that so many people are on the low end of
society, and marginalized by pay.
Boushey, Heather, Executive Director and Chief Economist, Washington Center for Equitable Growth.
"Understanding How Raising the Federal Minimum Wage Affects Income Inequality and Economic Growth Washington Center for Equitable Growth." Washington Center for Equitable Growth. The Washington Center
for Equitable Growth, 12 Mar. 2014. Web. 10 Dec. 2014. <http://equitablegrowth.org/research/understandingthe-minimum-wage-and-income-inequality-and-economic-growth/>.
Economists have found that the declining inflation-adjusted value of the minimum wage had a
considerable effect on wage inequality for those workers in the bottom half of the wage distribution. A
1996 paper by economists John DiNardo, of the University of Michigan, Nicole Fortin, of the University
of British Columbia, and Thomas Lemieux, also of the University of British Columbia, found that the
decrease in the minimum wage from 1979 to 1988 had a considerable effect on the wage distribution.
They found the decline over that time could explain up to 25 percent of the change in the standard
deviation in the logarithm of male wages and up to 30 percent for female wages. In plain English, this
means the decline in the minimum wage explained up to a fourth of increasing wage inequality for men
and up to three-tenths of increase wage inequality for women.
However, most people dont really think that an increase in the minimum wage would actually help economic
inequality, primarily because it doesnt really do much and it fails to address many of the root causes of
economic inequality, and even proponents do not tout the benefit of economic inequality as one of the primarily
motivations for increasing the minimum wage.
Another position argues that a living wage would better assist in gender inequalities.
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David Cooper [joined the Economic Policy Institute in July 2011. He conducts national and state-level research
on a variety of issues, including employment and unemployment, poverty, the minimum wage, and wage and
income trends. He also provides support to the Economic Analysis and Research Network (EARN) on datarelated inquiries and quantitative analyses. He has a masters in public policy from Georgetown University].
Raising the Federal Minimum Wage to $10.10 Would Lift Wages For Millions and Provide a Modest Economic
Boost. Economic Policy Institute Briefing Paper. December 19, 2013. Briefing Paper #371.
http://s1.epi.org/files/2014/EPI-1010-minimum-wage.pdf
While raising the minimum wage would benefit both men and women, it would disproportionately affect
women. As depicted in Figure E, women account for 49.2 percent of total U.S. employment, yet
comprise 55.0 percent of the workers whose incomes would rise by increasing the minimum wage to
$10.10. The share of those affected who are women varies somewhat by state, from a low of 47.7
percent in California to a high of 63.3 percent in Mississippi.
This is definitely an appealing argument, but there definitely remains good arguments against it. One
particularly common response to this argument is that women are more likely to lose their jobs as a result of an
increase in the minimum wage, which once again means that in order to win on this argument, affirmatives are
still going to have to prepared to argue the economic perspective of the living wage.
An increase in the minimum wage would also benefit people who are older. A common mistake is to assume
that most minimum wage employees are teenagers, but many are older citizens that could benefit from an
increase in the minimum wage.
David Cooper [joined the Economic Policy Institute in July 2011. He conducts national and state-level research
on a variety of issues, including employment and unemployment, poverty, the minimum wage, and wage and
income trends. He also provides support to the Economic Analysis and Research Network (EARN) on datarelated inquiries and quantitative analyses. He has a masters in public policy from Georgetown University].
Raising the Federal Minimum Wage to $10.10 Would Lift Wages For Millions and Provide a Modest Economic
Boost. Economic Policy Institute Briefing Paper. December 19, 2013. Briefing Paper #371.
http://s1.epi.org/files/2014/EPI-1010-minimum-wage.pdf
Perhaps the most common incorrect perception of low-wage workers is that they are largely teenagers
and almost entirely young people. While there certainly are a number of low-wage workers who fit this
description, young workers comprise only a small fraction of the workers who would be affected by an
increase to $10.10. Of the workers who would receive a raise if the minimum wage were lifted to $10.10
by 2016, only 12.5 percent are teens. In fact, of those affected, more are age 55 or older than are
teenagers. The average age among affected workers is 35 years old, more than half of all affected
workers are at least 30, and more than a third (34.5 percent) are at least 40.
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There are certainly other arguments concerning equality, but age, gender, and economic inequality are among
the most popular arguments for increasing the minimum wage into a living wage. The other popular equality
argument concerns racial equality, where is focuses on the wage gap between various racial groups. All of these
are excellent moral positions that can be fairly successful on a local circuit.
Remaining thoughts
There are a couple of different types of plans that affirmatives can run. The first is passing some sort of
legislation that specifies exactly what amount that employees will be paid and read arguments specific to why
passing that piece of legislation is good for the economy. A common affirmative type plan would be passing the
Fair Minimum Wage Act. This would be fairly strategic since there is tons of literature specific to why that
specific piece of legislation would be beneficial to the economy and that answers common objections to that
specific piece of legislation. The downside to it is that it is by far the most common plan and that people will
definitely have lots of prep against it. Other types of plan would be similar. Plan ground is wide and expansive
as the affirmative can pass any sort of legislation, but all are basically the same idea.
Negative
Though a lot of the literature definitely leans towards the affirmative, there are still a decent amount of good
arguments for the negative.
Libertarianism
Most moral objections to a living wage stem from a libertarian notion of morality. Most objections argue that
government coercion itself is bad, and then it splits into two major branches of objections: rights of the
employers, and the rights of the employees.
The rights of the employers is probably the stronger of the two positions, and something that a lot of people
believe in. This position argues that government coercion of employers and forcing them to pay their employees
is unjustified interference on the part of the government.
Jaana Woiceshyn [teaches business ethics and competitive strategy at the Haskayne School of Business,
University of Calgary, Canada]. Minimum Wage Laws are Immoral. Captialism Magazine. New Romanticist.
2014.04.14 http://capitalismmagazine.com/2014/04/minimum-wage-laws-immoral/
What about the argument that government-mandated minimum wages are necessary because otherwise
workers would be paid less than they deserve and need to support themselves? Again, the principle is the
immorality of government-initiated force. Why would government bureaucrats as opposed to individual
employees or job seekers know better what an acceptable minimum wage is? If you decide that $7/hour
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is an acceptable wage for the opportunity to gain work experience, to develop your skills, and to
increase your employment prospects, who is the government to tell you otherwiseand to leave you
unemployed because a minimum wage higher than $7/hour makes your uncompetitive? Supporting
yourself at $7/hour would be challenging and would require tight budgeting and discipline and perhaps
even taking on another jobuntil you have developed your skills and increased your productivity to be
able to negotiate higher pay. And if your employer will not pay what you deserve, you are free to find
another company that will. The government has no business in dictating voluntary trade between
employers and employees. The minimum wage laws are immoral and should be abolished, leaving
businesses and workers free to prosper.
This argument is by far the most common argument opposing an increase in the minimum wage/living wage. It
is has a decent amount of philosophical support and is pretty common. However, because it is very common,
many philosophers have taken upon to respond to this position, so in order to defend it well, it will require a lot
of work to properly defend it. One of the most common responses against it is the highly intuitive idea that
without a living wage, workers will be exploited, so in order to defend this position well, it will require well
thought out responses to a lot of various objections.
There is a different form of this argument posited by philosopher Jason Brennan about moral outsourcing. It
goes as follows:
Brennan, Jason, Assistant Professor of Strategy, Economics, Ethics, and Public Policy at Georgetown
University. "Against the Living Wage/Subsidy Arguments." Bleeding Heart Libertarians. N.p., 17 July 2013.
Web. 02 Dec. 2014. <http://bleedingheartlibertarians.com/2013/07/against-the-living-wagesubsidyarguments/>.
Suppose, on a reasonably competitive market, that Bobs labor is worth at most $1/hr to any potential
employer. (Suppose that this is the best Bob will be able to produce at any point in his life.) At anything
over $1/hr, employers would be losing money every hour Bob worked for them.
However, suppose for Bob to lead a decent, fully human life (however some left-wing activist would
like to define that), he would need to make $10/hr.
Now, suppose Bob works at fast-food chain McBurger in a competitive market economy where he gets
paid his marginal product, $1/hr. Suppose that he therefore qualifies for government assistance,
receiving an earned income tax benefit or basic minimum income, food stamps, and the like. Many on
the Left would say that the government thereby subsidizes McBurger, because McBurger pays Bob
less than it takes to keep him living well, and the government pays the difference. But this presupposes
that if you hire someone for, say, 40 hours a week, you owe him enough money for him to lead a decent
life.
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I dont understand where this presupposition comes from. If Bob is so lousy and unproductive that he
can produce only $40 of value to McBurger in a 40/hr week, and if McBurger pays him for his marginal
product, then this just means Bob isnt productive enough to pay his own way in this world. Bob is
going to be a net drain on the worldto keep him alive will require that he consume more than he
contributes. From an economic standpoint, the world is better without Bob than with him.
Isnt it more plausible to think that if theres some enforceable positive duty to provide Bob with enough
stuff to lead a life, that all of us, together share this burdensome duty, rather than just Bobs employer?
Why should Bobs employer, specifically, be the one that has to bear the burden and lose all this money
to keep him alive (at whatever level you consider decent)? This just seems like a kind of moral
outsourcing to me. Why not instead Bobs neighbors, parents, friends, or sexual partners? Bob does
McBurger a service, and McBurger pays him for that service.
Basically the argument is that employers are only responsible for compensating their employees for the service
that they perform. If that means that the employee performs a service worth $4, then the employer is morally
responsible for paying that employee $4, no more, no less. If the employee performs a service worth
$10,000,000, then the employer is morally required to pay that employee $10,000,000, no more, no less. This
means that the employer is not required to pay a living wage. The employer is only required to pay just
compensation. This is certainly an interesting moral argument against a living wage, and definitely an
interesting twist on the traditional libertarian argument. However, it is not without its flaws. For one, its fairly
difficult to say what actually counts as fair compensation. The line in the evidence that the world is better off
without Bob also seems somewhat offensive, because it implies that we should only measure peoples worth
based solely off of economic productivity. Overall, this is an interesting position that I think carries a strong
objection to the living wage.
Economy
Even though there are a lot of good studies that show that having a living wage would benefit the economy,
there is still a ton of evidence that shows that instituting a living wage would be detrimental to the economy
overall. One argument is that raising the minimum wage prevents entry-level workers from getting a job.
Dorn, James A., Senior Fellow at the Cato Institute. "The Minimum Wage Is Cruelest to Those Who Can't Find
a Job." Cato Institute. The Cato Institute, 22 July 2013. Web. 08 Aug. 2014.
<http://www.cato.org/publications/commentary/minimum-wage-cruelest-those-who-cant-find-job>.
The minimum wage is unfair to low-skilled workers with little experience because it prices them out of
the labor market and prevents them from achieving the upward mobility that is the hallmark of a
dynamic free-market economy. If the Fair Minimum Wage Act is passed, workers who cannot produce
at least $10.10 per hour will not be able to find an entry-level job. When employers expect the wage rate
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to increase by 40 percent over three years, they will take action today to substitute labor-saving methods
of production for the higher-priced labor. Job growth for younger, less-skilled workers will slow,
benefits will be cut, and part-time workers will take the place of full-time workers. Those adjustments
will speed up if overall business conditions are expected to be weak.
The other really popular argument carried on by opponents to increasing the minimum wage is that it would
cost jobs.
Miron, Jeffrey. "CBO's Minimum Wage Report." Cato Institute. The Cato Institute, 20 Feb. 2014. Web. 08
Aug. 2014. <http://www.cato.org/blog/cbos-minimum-wage-reportthe-increased-earnings-low-wage-workersresulting-higher-minimum-wage>
In a new report, the Congressional Budget Office estimates that raising the federal minimum wage from
its current level of $7.25 an hour would raise the incomes of low-wage workers who remain employed
while lowering the incomes of low-wage workers who lose their jobs. CBOs middle estimate is that a
$10.10 minimum wage would reduce total employment by about 500,000. These effects are exactly
what textbook economics predicts; the question is then how policy should regard this combination of
good news for some, bad news for others. On that score, the answer is obvious. A policy that alleges to
help low-wage workers, yet forces half a million to lose their jobs, is hard to reconcile with any sensible
view of redistribution. People with the lowest incomes are more appropriate targets of redistribution
than people with higher incomes, yet the minimum wage forces more people to have zero incomes. A
minimum wage is therefore loony from the get-go, even if one believes in a government safety net.
Of course, the argument that it would cost jobs is heavily empirically contested, with authors on the opposite
side of the political spectrum arguing that studies have shown that increasing the minimum wage does not affect
employment. In order to defend the position well, it will require that the negative be well researched into the
specifics of economic theory. Without this in-depth research, these economic arguments will devolve into he
said, she said arguments that go past each other.
Remaining thoughts
There are a couple of non-traditional approaches to negating this topic, but they wont be discussed here. There
are a couple of critical routes to take, and there are certainly a decent variety of counterplans. Universal basic
income and other supplementary programs are all popular alternatives to a living wage. They key to effectively
running these counterplans well is to prove they are competitive, or better than the affirmative. A lot of
counterplans are not competitive with the affirmative since they are designed to actually be used in conjunction
with a living wage, so be careful there.
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The biggest note I would offer towards people negating is that most affirmatives will have to rely on the fact
that increasing the minimum wage to a living wage is good for the economy. This is the crucial link that almost
every affirmative will rely on. If you are well prepared to answer that one question, you will be able to win most
stock rounds.
Conclusion
This topic is a very interesting and relevant topic that is well discussed within the topic literature and current
political discussion. I hope that these topics invite tons of clash and discussion.
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There are two major proposals to raise the minimum wage considered by lawmakers. LZ.
Congressional Budget Office. Congress of the United States. The Effects of a MinimumWage Increase on Employment and Family Income. February 2014.
https://www.cbo.gov/sites/default/files/44995-MinimumWage.pdf
Lawmakers have proposed various options for increasing the federal minimum wage, including several that
would increase it to $10.10 per hour and subsequently index it for inflation.7 CBO has assessed the impact of
such an option, as well as the impact of a smaller increase that would boost the minimum wage to $9.00 per
hour and would not link future increases to inflation. (See Appendix A for information about how CBO
conducted its assessments.) The options that CBO analyzed would not change other provisions of the FLSA,
such as the one that applies to wages for teenage workers during their first 90 days of employment.
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Recognition that the minimum wage cant support families drives living wage laws. LZ.
A Critical Examination of Living Wage Law Case in Point, Baltimore, Maryland Pat
Stevenson. Collaborative MSW Program. University of Wisconsin
Oshkosh/University of Wisconsin Green Bay. Author Note. Assignment for Social
Work 728: Advanced Social Welfare Policy Analysis. Section I, Instructor Dr. Carol
A. Hand. Fall 2010
Driving the living wage movement is the recognition that fulltime workers are no longer able to support their
families when earning the minimum wage. At the current Federal minimum wage of $7.25 per hour, a person
working fulltime grosses only $15,080 per year. While this comes in at slightly above 100% of the Federal
poverty guideline for a household of one, it brings a family of four to only 68% of the 2010 Federal poverty
level. Using the Federal governments figure of $22,050 as 100% of poverty for a family of four, a person
would need to earn $10.60 per hour in order to earn poverty level wages fully 32% more than the current
minimum wage (Foundation for Health Coverage Education, n.d.).
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Over 1.2 million workers paid below national minimum wage prior to introduction. LSS
Metcalf, David. "The National Minimum Wage: Coverage, Impact and Future*." Oxford
Bulletin of Economics and Statistics 64.Supplement (2002): 567-82. David Metcalf is
a professor of Economics at the London School of Economics.
Allowing for growth in earnings between spring 1998 and April 1999 the LPC calculates (LPC, 2003, para 2.6)
that 1.2 million employees were paid below the NMW just prior to its introduction. The composition of such
jobs is presented in Table 1. Females accounted for nearly three quarters and female part-timers for over half of
those covered. Almost half the employees covered were in the wholesale and retail trades and hotels and
restaurants. One of six workers in personal and protective services and sales had their pay directly raised by the
NMW. Regional coverage shows that the incidence of pay levels below the NMW was lower than the national
average in eastern, London and South East regions but above the national average everywhere else.
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Affirmative Evidence
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Aff: Polls
Polls
Across all groups, including the rich and the conservatives, people support raising the
national minimum wage. LZ.
Molyneux, Guy. "Public Support for Raising the Minimum Wage." Hart Research
Associates. N.p., 23 July 2013. Web. 6 Aug. 2014. <http://www.nelp.org/page//rtmw/uploads/Memo-Public-Support-Raising-Minimum-Wage.pdf?nocdn=1>.
By a ratio of four to one, Americans support raising the minimum wage to $10.10 per hour and adjusting
it for the cost of living in future years. Eight in ten adults (80%) approve of this minimum wage proposal,
including 46% who strongly approve, and just 20% disapprove. Support is equally strong among registered
voters (79%), and is well over 70% in every region of the country. Approval is voiced not only by Democrats
(92%) and low-income adults (83%), but also by such traditionally conservative groups as Republicans
(62%), southern whites (75%), and those with incomes over $100,000 (79%). We also find solid support for
the $10.10 minimum wage among swing political constituencies, including independents (80%) and non-college
whites (80%).
Support within the United States is extremely strong, which is a strong, intuitive reason for enacting a
higher minimum wage. This evidence shows that even the people most likely to oppose such legislation
because of philosophical beliefs are actually in support of raising the minimum wage to a living wage,
contradicting the idea that people highly oppose the minimum wage.
Even small business owners agree, the ones most affected by an increase in the minimum
wage. LZ.
Brodwin, David. "A Higher Minimum Wage Is Good for Business." US News. U.S.News &
World Report, 14 July 2014. Web. 06 Aug. 2014.
<http://www.usnews.com/opinion/economic-intelligence/2014/07/14/why-smallbusiness-owners-back-a-minimum-wage-hike>.
Five years ago this month, the minimum wage reached the lofty sum of $7.25 per hour, the last step in a series
of increases Congress set in motion in 2007. It hasnt been raised since, and after taking inflation into account,
the minimum has fallen to an adjusted level of only $6.54. That may change soon. Support for a higher
minimum wage now comes from an unlikely source: the owners of Americas small businesses, and CEOs
of some the nations largest and most respected brands. Meanwhile, recently published research shows
that wage hikes at a modest level dont kill growth and jobs. In fact, the states that have raised their
minimums have enjoyed above-average economic growth.
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Last week the American Sustainable Business Council and Business for a Fair Minimum Wage released a report
of a scientific national poll of small business owners. The poll involved a live telephone survey of 555 small
business owners, with between 2 and 99 employees each. Respondents spanned the political spectrum, all
regions of the country and a broad cross-section of industries.
Three out of five small business owners (61 percent) favor raising the minimum wage gradually to $10.10
and then adjusting it annually to keep pace with the cost of living. This new polling data contradicts the
oft-repeated claim that raising the minimum wage will kill profits, eliminate jobs and cut growth.
Apparently the people doing the hiring and paying the difference dont agree with those dour
predictions.
Small business owners understand that their success depends on the overall health of the U.S. economy, since
by and large they cant export their way out of a slump in the U.S. And they recognize that, within limits, when
workers are paid more, they spend more, and that helps the economy. 58 percent of small business owners
believe that raising the minimum wage would increase consumer purchasing power. Similarly, 56 percent
say that raising the minimum wage will help the economy overall.
When considering how a higher minimum wage might affect them, 53 percent said that it would lead to lower
employee turnover, increased productivity and greater customer satisfaction.
Support for a higher minimum wage crosses party lines among business owners, even though it doesnt among
professional politicians. Small business owners are a largely Republican crowd, with fewer Democrats
than independents. Even among Republican business owners, 49 percent support raising the wage, tied
with the number who oppose it.
This evidence shows that those that are directly affected by minimum wage increases actually want an
increase in minimum wage because they feel that it will benefit them.
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Americans are currently disengaged form their jobs costing the U.S. as much $550 billion.
Polls prove. BG
Steve Siebold. New Gallup Poll Shows 70 Percent of Americans Are Disengaged From
Their Jobs. June 19, 2013. He is the author of five books and writer for the
Huffington Post.
Siebol writes A recent Gallup poll found that 70 percent of American workers are disengaged from their
jobs. Of the 100 million people who hold jobs in America, the survey found that 30 million are actively
engaged, 50 million are not engaged and 20 million are actively disengaged. The consequences are many, but
Gallup estimates that actively disengaged employees cost the U.S. as much as $550 billion in economic
activity each year. The public also suffers immensely as this disengagement will undoubtedly rub off on poor
customer service and issues of quality control.
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Economy
An analysis of states that raised the minimum wage compared to states that didnt shows that
states with a higher minimum wage had higher economic growth. LZ.
Brodwin, David. "A Higher Minimum Wage Is Good for Business." US News. U.S.News &
World Report, 14 July 2014. Web. 06 Aug. 2014.
<http://www.usnews.com/opinion/economic-intelligence/2014/07/14/why-smallbusiness-owners-back-a-minimum-wage-hike>.
Recent economic research supports an increase. While too high an increase would damage economic growth,
the range of increases currently being enacted are helping rather than hurting the economies involved. A
recent study compared what happened to total payrolls in states that raised the minimum versus states
that didnt. The 13 states that raised the wage enjoyed nearly 50 percent faster employment growth than
the ones that didnt. This isnt a theoretical analysis of what might happen; this is a data-based analysis of
what actually did happen. Minimum wage hikes, at the modest levels that are getting voted into law, help
economies grow.
This evidence is pretty good because it shows empirically, that increasing minimum wage laws are good
for the economy. It even shows that specifically modest increases, like a living wage, are the ones that
benefit the economy. The negative evidence about it hurting the economy can be true, but it probably
doesnt prove that modest increases hurt the economy.
A nonpartisan analysis of the issue shows that nearly all economic indicators increased when
the minimum wage was increased. LZ.
The Fiscal Policy Institute (FPI) is a nonpartisan research and education organization that
focuses on the broad range of tax, budget, and economic and related public policy
issues that affect the quality of life and the economic well being of New York State
residents. States with Minimum Wages above the Federal Level have had Faster
Small Business and Retail Job Growth. March 30, 2006.
http://www.fiscalpolicy.org/FPISmallBusinessMinWage.pdf
The last time the federal minimum wage was increased was in September of 1997. Since then, a growing
number of states have raised their own minimum wage levels above the federal $5.15 level. By 1999, 10 states
and Washington, D.C. had minimum wages above the federal level. The next big wave of increases came in
2005 when five states set their minimums above the federal level. There are currently 18 states, plus the District
of Columbia, that have a higher minimum wage. In addition, Michigan recently acted to raise its minimum
wage effective October 1, 2006. These 19 higher minimum wage states comprise a diverse set of states and
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include seven northeastern states (Connecticut, Massachusetts, Maine, New Jersey, New York, Vermont, and
Rhode Island), four Midwestern states (Illinois, Michigan, Minnesota, and Wisconsin), the five West Coast
states (California, Oregon, Washington, Alaska, and Hawaii), and Delaware, Maryland, Florida, and the District
of Columbia. Altogether, the states that have raised their minimum wages account for almost half of the
nations total employment. In examining state-level small business job growth, the best government data
available permits a comparison of 1998 and 2003; the latter is the most recent year for which the data are
available. For the 10 states and the District of Columbia that had set their minimum wages above the
federal level for most of this period, indicators of economic performance were consistently better than for
the other 40 states where the federal minimum wage of $5.15 an hour prevailed: The number of small
businesses across the economy with fewer than 50 employees grew by 5.4% from 1998 to 2003 in the higher
minimum wage states, compared to a 4.2% increase for the balance of the states; and In the higher minimum
wage states as a group, small businesses had faster job growth (6.7% vs. 5.3% for the other 40 states
combined); total annual payroll grew more (24.5% vs. 21.2%); and average payroll per worker increased by
16.7%, a greater increase than the 15.1% increase for the 40 states observing the federal minimum wage.
There are a couple of reasons why this evidence is really good: Its the best government data available.
Other data sets are incomplete or dont have an adequate sample size. Its comparative on the issue and
shows you what has happened with a higher minimum wage so the evidence compares what actually has
happened. Their evidence will be one sided and doesnt show what the alternative is; mine does. Finally,
its empirical in nature. Their evidence will be predictive in economic analysis; this evidence shows you
what has happened when this action was actually taken. This is the only evidence on this question that
shows what has actually happened in the past.
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An increase in the minimum wage would not significantly affect the federal budget. LZ.
Congressional Budget Office. Congress of the United States. The Effects of a MinimumWage Increase on Employment and Family Income. February 2014.
https://www.cbo.gov/sites/default/files/44995-MinimumWage.pdf
Effects of a Minimum-Wage Increase on the Federal Budget. In addition to affecting employment and family
income, increasing the federal minimum wage would affect the federal budget directly by increasing the wages
that the federal government paid to a small number of hourly employees and indirectly by boosting the prices of
some goods and services purchased by the government. Most of those costs would need to be covered by
discretionary appropriations, which are capped through 2021 under current law. Federal spending and taxes
would also be indirectly affected by the increases in real income for some people and the reduction in real
income for others. As a group, workers with increased earnings would pay more in taxes and receive less in
federal benefits of certain types than they would have otherwise. However, people who became jobless because
of the minimum-wage increase, business owners, and consumers facing higher prices would see a reduction in
real income and would collectively pay less in taxes and receive more in federal benefits than they would have
otherwise. CBO concludes that the net effect on the federal budget of raising the minimum wage would
probably be a small decrease in budget deficits for several years but a small increase in budget deficits
thereafter. It is unclear whether the effect for the coming decade as a whole would be a small increase or
a small decrease in budget deficits.
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Raising the minimum wage increases the employment of higher wage workers. LZ.
Congressional Budget Office. Congress of the United States. The Effects of a MinimumWage Increase on Employment and Family Income. February 2014.
https://www.cbo.gov/sites/default/files/44995-MinimumWage.pdf
Low-wage workers are not the only ones whose employment can be affected by a minimum-wage increase; the
employment of higher-wage workers can be affected as well, in several ways. Firms that cut back on production
tend to reduce the number of both higher-wage workers and low-wage workers. But once a minimum-wage
increase makes higher-wage workers relatively less expensive, firms sometimes hire more of them to
replace a larger number of less productive low-wage workers. Another factor affecting higher-wage
workers is the increase in the economy wide demand for goods and services. All in all, a higher minimum
wage tends to increase the employment of higher-wage workers slightly, according to CBOs analysis.
Low wage workers are more likely to spend than any other income group. LZ.
David Cooper [joined the Economic Policy Institute in July 2011. He conducts national
and state-level research on a variety of issues, including employment and
unemployment, poverty, the minimum wage, and wage and income trends. He also
provides support to the Economic Analysis and Research Network (EARN) on datarelated inquiries and quantitative analyses. David has been interviewed and cited
for his research on the minimum wage, poverty, and U.S. economic trends by local
and national media, including The New York Times, The Washington Post, The Los
Angeles Times, U.S. News and World Report, CNBC, and NPR. His graduate
research focused on international development policy and intergenerational social
mobility. He has a masters in public policy from Georgetown University]. Raising
the Federal Minimum Wage to $10.10 Would Lift Wages For Millions and Provide a
Modest Economic Boost. Economic Policy Institute Briefing Paper. December 19,
2013. Briefing Paper #371. http://s1.epi.org/files/2014/EPI-1010-minimum-wage.pdf
Economists generally agree that low-wage workers are more likely than any other income group to spend any
additional earnings they receive, largely because they must in order to meet their basic needs. Higher-income
individuals, corporations, and beneficiaries of corporate profits are more likely to save at least a portion of any
additional income. Thus, in a period of depressed consumer demand, raising the minimum wage can provide a
modest boost to overall economic activity because it shifts income to workers who are very likely to spend it
immediately. Indeed, recent research from the Federal Reserve Bank of Chicago finds that raising the federal
minimum wage to $10 could increase U.S. GDP by up to 0.3 percentage points in the near term3 (Aaronson and
French 2013).
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An increase in the minimum wage would provide an additional $35 billion to the economy.
LZ.
David Cooper [joined the Economic Policy Institute in July 2011. He conducts national
and state-level research on a variety of issues, including employment and
unemployment, poverty, the minimum wage, and wage and income trends. He also
provides support to the Economic Analysis and Research Network (EARN) on datarelated inquiries and quantitative analyses. David has been interviewed and cited
for his research on the minimum wage, poverty, and U.S. economic trends by local
and national media, including The New York Times, The Washington Post, The Los
Angeles Times, U.S. News and World Report, CNBC, and NPR. His graduate
research focused on international development policy and intergenerational social
mobility. He has a masters in public policy from Georgetown University]. Raising
the Federal Minimum Wage to $10.10 Would Lift Wages For Millions and Provide a
Modest Economic Boost. Economic Policy Institute Briefing Paper. December 19,
2013. Briefing Paper #371. http://s1.epi.org/files/2014/EPI-1010-minimum-wage.pdf
Our research shows that raising the federal minimum wage to $10.10 by 2016 would provide an additional $35
billion in wages over the phase-in period to directly and indirectly affected workers, who are likely to then
spend that additional income. This projected rise in consumer spending would provide a modest boost to U.S.
GDP, even after accounting for the increased labor cost to businesses and the potential for small price increases
for consumers. Using standard fiscal multipliers, we would expect that increasing the federal minimum wage
from $7.25 to $10.10 would generate a net increase in economic activity of $22.1 billion over the phase-in
period. This additional GDP would support roughly 85,000 new jobs.4 As shown in Appendix Table 1,
increasing the federal minimum wage would generate jobs in every state. (As noted previously, detailed statelevel demographic information on each states affected workers is available at
http://www.epi.org/files/2013/minimum-wage-state-tables.pdf.) Appendix Table 2 details the economic effects
of each of the three incremental increases.
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Aff: Economy
Implementing a living wage actually benefits companies thus helping the economy. BG
Investopedia. Living Wage. 2014. http://www.investopedia.com/terms/l/living_wage.asp.
Investopedia is a website owned by Forbes Digital. It is focused on teaching people
the basics of Finance.
Supporters of the living wage, on the other hand, argue that benefiting employees will also help the company. If
employees are more satisfied earning a living wage, there will be less employment turnover. This reduces
expensive recruitment and training costs for the firm. They also argue that the higher wage will boost morale.
Employees with high morale are expected to have higher productivity, allowing the company to benefit from
increased worker output.
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Raising wages helps scrupulous businesses compete against those that cut corners in order to
decrease costs. BG
Jeff Chapman and Jeff Thompson. The economic impact of local living wages. February
15, 2006. Chapman is an Assistant Research Professor at the Political Economy
Research Institute at the University of Massachusetts. Thompson is an economist
on the Federal Reserve Board.
A common sentiment expressed by contractors in Baltimore was that the higher wage floor leveled the
playing field. As one bus company manager stated, We feel more able to compete against businesses that
were drastically reducing wages in order to put in a low bid. The LAANE employer survey found that
11% of firms consider it easier to compete for city contracts following the living wage policy (Fairris et al.
2005, 111). These firms felt that the new policy had made it possible for scrupulous companies paying decent
wages to compete against firms whose main strategy is to drive down wages. Elmores survey indicates that
following adoption of a living wage, some cities instituted competitive bidding for contracts that had not been
put out for bid in many years. These cities report that the return to bidding led to cost savings. Brenner and Luce
(2005) determined that the large increase in the number of bidders in Hartford was the result of more security
firms willing to bid because of the living wage ordinance. Previously, firms that paid their workers higher
wages were unwilling to bid when the outcome of the contract was determined exclusively by who could offer
the lowest wages. One security guard contractor remarked, Most companies with any business sense would
concentrate on a higher wage niche, because there is more stability involved, and it gives you better control of
the business, and allows you to preserve your reputation. Similar sentiments were expressed in New Haven,
where that citys comptroller noted that the living wage puts all vendors on equal footing [and] it has leveled
off undercutting. Under the ordinance, competition for contracts is determined by more than which firms can
drive wages down the lowest, and is influenced by other factors, such as service quality.
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Minimum wage is not sufficient. Only living wage can improve the lives of the common
American. BG
Jeff Chapman and Jeff Thompson. The economic impact of local living wages. February
15, 2006. Chapman is an Assistant Research Professor at the Political Economy
Research Institute at the University of Massachusetts. Thompson is an economist
on the Federal Reserve Board.
The astounding growth of the living wage movement has been a response to the predicament of
Americans who work but are unable to make ends meet, as well as to the public policies contributing to
the problem. Public policies have exacerbated the problem from the federal level to the local level. Since the
early 1980s, the federal government has generally neglected the minimum wage; by 2005, a minimum
wage paycheck bought less than it had in 49 of the last 50 years. Local governments have contributed to
the problem, following the trend of cutting costs by contracting out services to firms who frequently pay
lower wages and offer fewer benefits than public employment. Too often, economic development efforts
have channeled public funds in the form of tax breaks or tax incentives to businesses without regard to
the quality of the jobs those businesses provide. As a result of these policies, the two most common themes
echoed by living wage proponents are (1) that wages should be high enough to allow workers to meet basic
needs (i.e., living wages), and (2) that municipal policy should encourage or require living wages for its
employees and contractors, rather than exacerbate the problems faced by low-wage workers.
Minimum wage is not sufficient. More evidence proves that minimum wage cannot keep up
with inflation. BG
Stacy Brustin, 2012. Child Support: Shifting the Financial Burden in Low-Income
Families, Georgetown Journal on Poverty Law & Policy Professor of Law at The
Catholic University of America, Columbus School of Law.
One avenue that child support advocates for low-income resident and nonresident parents might consider is
joining forces with employment law advocates to push for increases in minimum wage laws and living wage
initiatives. From 2007 to 2009, Congress raised the federal minimum wage from $ 5.15 to $ 7.25 per hour.
This was the first in-crease in ten years and, despite the increase, the minimum wage rate failed to keep
up with the rate of inflation. Economists have calculated that if the minimum wage "had kept pace with
the rate of inflation over the past forty years, it would now be more than $ 10.00 per hour." Currently,
eighteen states and the District of Columbia have minimum wages higher than the federal minimum wage and
legislators around the country [*45] are trying to ex-pand the state count. Most recently, the Rebuild America
Act, introduced in March 2012, proposes to increase the federal minimum wage to $ 9.80 per hour by 2014 and
index the rate to the Consumer Price Index so that the mini-mum wage rises to meet costs.
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Aff: Economy
Living wage laws benefit working families with few or no negative effects of the economy at
large. BG
Jeff Chapman and Jeff Thompson. The economic impact of local living wages. February
15, 2006. Chapman is an Assistant Research Professor at the Political Economy
Research Institute at the University of Massachusetts. Thompson is an economist
on the Federal Reserve Board.
Living wage laws benefit working families with few or no negative effects. Recent studies using original
surveys in both Los Angeles and Boston have shown that the workers affected were mostly adults and mostly
working full time. Both the Boston and Los Angeles studies also showed that most living wage workers were in
households struggling to meet a basic-needs budget. In Baltimore and Boston, empirical studies have found no
evidence of diminished employment. In Los Angeles, surveys of workers and firms show that job losses
affected just 1% of workers getting a raise. Two studies of San Francisco living wage policies found
employment increased among airport workers and home health care workers. An exception to the general
conclusion of research on living wages is a series of studies by David Neumark and Scott Adams that estimate
relatively large wage gains and employment losses. The method of these studies has been severely criticized,
and the findings discredited by many researchers.
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Aff: Economy
Living wages help the economy at large by raising productivity and decreasing turnover. BG
Jeff Chapman and Jeff Thompson. The economic impact of local living wages. February
15, 2006. Chapman is an Assistant Research Professor at the Political Economy
Research Institute at the University of Massachusetts. Thompson is an economist
on the Federal Reserve Board.
Living wages laws have raised productivity and decreased turnover among affected firms. Multiple studies
of Baltimore, Boston, Los Angeles, and San Francisco have shown that firms enjoy lower turnover among
employees as a result of the living wage ordinance. A study of home-care workers in San Francisco found that
turnover fell by 57% following implementation of a living wage policy. A study of the Los Angeles ordinance
found that absenteeism declined, and the decrease in turnover offset 16% of the total cost of the living wage
ordinance. A study of the San Francisco airport found that annual turnover among security screeners fell from
95% to 19%, as their hourly wage rose from $6.45 to $10.00 an hour.
More studies prove that living wages help the economy at large by raising productivity and
decreasing turnover. BG
Jeff Chapman and Jeff Thompson. The economic impact of local living wages. February
15, 2006. Chapman is an Assistant Research Professor at the Political Economy
Research Institute at the University of Massachusetts. Thompson is an economist
on the Federal Reserve Board.
One potential benefit of living wage ordinances (which is also one explanation for the minor impact on
municipal budgets and employment levels) is that higher wage floors lead to decreased turnover and
greater work effort among the affected workforce, as well as spur firms to seek out and adopt other
means of boosting productivity. These responses could offset at least some of the increased labor costs
experienced by employers. Most of the available research on living wages suggests that these types of responses
are occurring. Increased productivity resulting from wage increases has been recognized for decades,
particularly in the economics literature on efficiency wages and debates over the minimum wage. With higher
wages, workers may feel greater satisfaction with their job and may decide to put in greater work effort.27
Increased effort could also result from fear of losing the job; now that the job is more desirable than available
alternatives the cost of job loss is greater. A related byproduct is that workers may be less likely to leave their
jobs, thus lowering the rate of employee turnover and reducing costs of recruiting and training new workers. All
of these mechanisms suggest ways that increased labor costs for firms are offset. The research on the living
wage has provided new opportunities to test for evidence of these effects. The earliest living wage studies relied
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Aff: Economy
on qualitative interviews, and presented evidence to suggest that employees were working harder with the new
wage floor and turnover had declined. In their survey of affected workers, Niedt found that most reported an
improved attitude toward their job, including a greater sense of worth of the job and an intention to stay on the
job longer (Niedt 1999, 2). Similarly, in their interviews with effected contractors, researchers at Preamble
found evidence suggesting improved attitudes toward work as well as reduced turnover (Preamble 1996, 13).
The Preamble study quotes one manager as saying workers seem happy [and] they come to work on time
because they know that at $6.10 [in 1995] per hour, somebody else wants the job if they dont. Further
anecdotal evidence of decreased turnover following living wage ordinances is reported in Elmores survey of
cities. Sander and Lokeys interviews with contractors following implementation of the living wage ordinance
in Los Angeles also yielded evidence that some firms had responded to increased labor costs by becoming more
productive.
More studies prove that living wages help the economy at large by raising productivity. BG
Paul Sonn and Tsedeye Gebreselassie. 2010. The Road to Responsible Contracting:
Lessons from States and Cities for Ensuring That Federal Contracting Delivers
Good Jobs and Quality Services. Berkeley Journal of Employment and Labor Law.
Sonn is Legal Co-director of the NELP. Tsedeye is a Staff Attorney for the NELP.
Furthermore, a growing body of research demonstrates that in many industries, contractors that provide
good wages and benefits and respect workplace laws deliver higher-quality services for government
agencies and the taxpayers. For example, as discussed in greater detail below, studies of local living wage
policies have found that better-paid workforces typically see decreased employee turnover (with corresponding
savings in re-staffing costs), increased productivity, and improvements in the quality and reliability of
contracted services for taxpayers. N13In a leading case study, the San Francisco International Airport saw
annual turnover for security screeners plummet from 94.7 percent to 18.7 percent after it instituted a living
wage policy. As a result, employers saved about $ 4,275 per employee in turnover costs and reported
improvements in employee performance, employee morale and customer service.
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Increasing living wage doesn't hurt consumers at large. SFO is a good example. BG
Jeff Chapman and Jeff Thompson. The economic impact of local living wages. February
15, 2006. Chapman is an Assistant Research Professor at the Political Economy
Research Institute at the University of Massachusetts. Thompson is an economist
on the Federal Reserve Board.
One of the most comprehensive, post-passage studies of a living wage ordinance followed the
implementation of the living wage at the San Francisco International Airport (SFO). The SFO policy is
almost universally applied to the airport workforce, directly affecting the wages of about 5,400 workers6 (Reich
2005, 119). The living wage policy is actually part of a series of policies called the Quality Standards Program
(QSP) that includes a wage floor. Unlike most other living wage ordinances, the affected firms dont provide
services for a municipal government, but instead operate in a publicly owned facility. Most of the study,
produced by Michael Reich and colleagues at UC Berkeley, concerns the employment and other economic
impacts of the QSP (which will be discussed in the next section), and addresses the issue of cost increases faced
by airport consumers. Reich shows that even if the entire employee compensation cost of the QSP was
passed on to consumers, the effect would be relatively minoran increase of $1.42 per passenger, an
amount unlikely to deter people from using SFO (Reich 2005, 124). This hypothetical increase is
substantially less than the $5 per segment security tax implemented following September 11th and the $4.50
departure tax proposed by the airport in 2001 to study options for a new runway.
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Stopping Crime
Poverty causes violence and crime. BG
Ronald C. Kramer. Poverty, Inequality, and Youth Violence. July 13 2014 .
http://www.umich.edu/~psycours/561/kramer.htm. Professor of sociology and
director of the Criminal Justice Program at Western Michigan University.
The links between extreme deprivation, delinquency, and violence, then, are strong, consistent, and compelling.
There is little question that growing up in extreme poverty exerts powerful pressures toward crime. The fact
that those pressures are overcome by some individuals is testimony to human strength and resiliency, but does
not diminish the importance of the link between social exclusion and violence.
The US demonstrates a good example of how poverty has empirically caused crime. BG
Ronald C. Kramer. Poverty, Inequality, and Youth Violence. July 13 2014 .
http://www.umich.edu/~psycours/561/kramer.htm. Professor of sociology and
director of the Criminal Justice Program at Western Michigan University.
Why does the United States have exceptionally high rates of violent crime, particularly youth homicide,
compared to other industrial nations? Conservative commentators frequently assert that it is a lenient
criminal justice and juvenile justice system that causes high crime rates or that crime and violence are the result
of cultural decline and something called moral poverty. But the American justice system is one of the harshest
in the world, and, although the cultural and moral condition of American families and communities is important
to take into account in understanding crime, these conditions are strongly affected by larger social and
economic forces. These larger social structural conditions are the factors that sociological criminologists point
to as the roots of violence. As Currie (1998) observes, "For there is now overwhelming evidence that
inequality, extreme poverty, and social exclusion matter profoundly in shaping a society's experience of
violent crime. And they matter, in good part, precisely because of their impact on the close-in institutions of
family and community" (114).
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The root cause of poverty in the United States is the lack of social benefits to help those in
poverty. This demonstrates the need for a living wage. BG
Ronald C. Kramer. Poverty, Inequality, and Youth Violence. July 13 2014 .
http://www.umich.edu/~psycours/561/kramer.htm. Professor of sociology and
director of the Criminal Justice Program at Western Michigan University.
When we look at the research on poverty and economic inequality, we find that the United States has by far the
highest poverty rate and the biggest gap between the rich and the poor of any of the developed nations (Kerbo
1996). Currie (1998) notes the findings of the Luxembourg Income Study (LIS), an international survey of
poverty, inequality, and government spending in industrial countries (Rainwater and Smeeding 1995). The LIS
shows that the United States, while a very wealthy society, has far more inequality and is far less committed
to providing a decent life for the poor than are other developed nations. The LIS also demonstrates that, in
particular, children and families in the United States are far more likely to be poor than those in other
industrial democracies. Furthermore, poor American children are more likely to be extremely poor
compared to children in other advanced countries. According to the LIS and other studies, there are several
reasons why poor children and families in the United States find themselves in such a plight. First, many
Americans in the so-called urban underclass are trapped in a system of concentrated unemployment that results
in an increasingly isolated poverty (Wilson 1996). Second, those who do work, primarily in the secondary
labor market, earn very low wages compared to their counterparts in other countries. This creates the
problem of the working poor. Finally, the United States provides fewer government benefits to either the
underclass or the working poor to offset the problems of concentrated unemployment and poor wages.
Recent changes in the welfare system are likely to aggravate the situation.
A really great extension of the previous piece of evidence is for the use of answering the argument that
employers will fire employees in response to having to pay a higher wage. You can argue that those
people who are being fired are already in poverty and can be considered the "working poor," only a
living wage can bring at least some of those people out of poverty. The next card (from Amy Glasmeier)
can be used as extension evidence to go along with this proving that only getting paid minimum wage
actually furthers poverty.
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Minimum wage does not prevent poverty only living wage can effectively fight poverty.
Galsmeier gives specific numbers on wages for multiple states. BG
Amy Glasmeier. Introduction to the Living Wage Calculator." 2014. She was the
Department Head of Urban Studies and Planning at MIT from 2009 to 2013.
In many American communities, families working in low-wage jobs make insufficient income to live locally
given the local cost of living. Recently, in a number of high-cost communities, community organizers and
citizens have successfully argued that the prevailing wage offered by the public sector and key businesses
should reflect a wage rate required to meet minimum standards of living. Therefore we have developed a living
wage calculator to estimate the cost of living in your community or region. The calculator lists typical expenses,
the living wage and typical wages for the selected location. Update (3-24-14) While the minimum wage sets
an earnings threshold under which our society is not willing to let families slip, it fails to approximate the
basic expenses of families in 2013. Consequently, many working adults must seek public assistance and/or
hold multiple jobs in order to afford to feed, cloth, house, and provide medical care for themselves and
their families. Establishing a living wage, an approximate income needed to meet a familys basic needs,
would enable the working poor to achieve financial independence while maintaining housing and food
security. When coupled with lowered expenses, for childcare and housing in particular, the living wage
might also free up resources for savings, investment, and/or for the purchase of capital assets (e.g.
provisions for retirement or home purchases) that build wealth and ensure long-term financial security. An
analysis of the living wage using updated data from 2013 and compiling geographically specific expenditure
data for food, childcare, health care, housing, transportation, and other basic necessities, finds that: The
minimum wage does not provide a living wage for most American families. A typical family of four (two
working adults, two children) needs to work more than 3 full-time minimum-wage jobs (a 68-hour work week
per working adult) to earn a living wage. Across all family sizes, the living wage exceeds the poverty threshold,
often used to identify need. This means that families earning between the poverty threshold ($23,283 for two
working adults, two children) and the median living wage ($51,224 for two working adults, two children per
year before taxes), may fall short of the income and assistance they require to meet their basic needs. The cost
of housing and childcare for families with children exceeds all other expenses. In the United State, a typical
family of four (two working adults, two children) spends 21% of their after-tax income on childcare and another
21% on housing. Faced with tradeoffs, a second working adult must earn at least $11,195 on average in order to
cover the costs of childcare and other increased expenses when they enter the workforce. Single-parent families
need to work almost twice as hard as families with two working adults to earn the living wage. A single-mother
with two children earning the federal minimum wage of $7.25 per hour needs to work 125 hours per week,
more hours than there are in a 5-day week, to earn a living wage. The living wage varies based on the cost of
living and taxes where families live. Families of four (with two working adults, two children) in the North
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($56,179) and West ($53,505) have higher median living wages before taxes than the South ($49,167), and
Midwest ($48,496). Within region, the largest variation is between Southern states, where the living wage
ranges from $45,655 in South Carolina to $69,820 in the District of Columbia. In most metropolitan areas,
where the US economy and jobs are increasingly concentrated, the living wage is higher than the national
median. Consistent with overall regional variation, of the most populous 100 metropolitan areas, Honolulu
($66,554), New York ($67,323), and Washington DC ($69,709) have the highest living wages for the typical
family of four.
The second half of the previous piece of evidence just provides a ton of specific numbers. You do not
necessarily need to read all of these in round but they are good to know and have on hand.
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Poverty forces people to become criminals because they do not have the means to escape
poverty and become productive members of society. BG
Ronald C. Kramer. Poverty, Inequality, and Youth Violence. July 13 2014 .
http://www.umich.edu/~psycours/561/kramer.htm. Professor of sociology and
director of the Criminal Justice Program at Western Michigan University.
Another important perspective on the relationship between social and economic conditions, the lack of social
support, and youth crime is contained in the work of John Hagan. In presenting a "new sociology of crime and
disrepute," Hagan (1994) develops the concepts of human, social, and cultural capital and capital disinvestment
processes to help us understand the connections between inequality, social institutions, and violent crime.
According to Hagan, the general concept of human capital refers to the skills, capabilities, and knowledge
acquired by individuals through education and training that allow them to act in new ways. To this he
adds the concept of social capital, which "involves the creation of capabilities through socially structured
relationships between individuals in groups" (67). Social groups such as intact nuclear and extended
families, wellintegrated neighborhoods, stable communities, and even nation-states are the sites for the
development of social capital in individuals that provides them with the resources and capacities to achieve
group and individual goals. These supportive social networks can lead to the formation of cultural capital
such as the credentials of higher education and involvement in high culture like the arts and their
supporting institutions. As Hagan points out, "In these community and family settings, social capital is
used to successfully endow children with forms of cultural capital that significantly enhance their later
life changes" (69). The ability to endow children with social and cultural capital, however, is linked to
economic position. As Hagan (1994) notes, in less advantaged community and social settings, which lack
abundant forms of social and cultural capital, parents are far less able to provide resources,
opportunities, and supports to their children. Thus, "the children of less advantageously positioned and
lessdriven and controlling parents may more often drift or be driven into and along less-promising paths of
social and cultural adaptation and capital formation" (70). These "lesspromising paths of social and cultural
adaptation," of course, include embeddedness in the criminal economy of drugs and other forms of gang activity
and delinquent behavior. Hagan (1994) emphasizes that "disadvantaging social and economic processes" in the
community and broader society, what he calls "capital disinvestment processes," are destructive of social and
cultural capital and often produce deviant subcultural adaptations (70).
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Poverty is the key link to crime. Nothing else matters nearly as much. BG
Ronald C. Kramer. Poverty, Inequality, and Youth Violence. July 13 2014 .
http://www.umich.edu/~psycours/561/kramer.htm. Professor of sociology and
director of the Criminal Justice Program at Western Michigan University.
Another perspective on the impact of cultural and structural forces on the ability of social institutions such as
the family to control youth crime comes from Messner and Rosenfeld (1997). Building on Robert Merton's
concept of anomie, Messner and Rosenfeld assert that the core features of the social organization of the United
States-culture and institutional structure-shape the high levels of American crime. At the cultural level, they
argue that the core values of the American Dream (achievement, individualism, universalism monetary success)
stimulate criminal motivations while promoting weak norms to guide the choices of means to achieve cultural
goals (anomie). As Messner and Rosenfeld point out, "The American Dream does not contain within it strong
injunctions against substituting more effective, illegitimate means for less effective, legitimate means in the
pursuit of monetary success" (76). At the institutional level, Messner and Rosenfeld (1997) observe that the
economy tends to dominate all other social institutions and that this imbalance of institutional power fosters
weak social control. There are two ways that this imbalance of power weakens social control. First social
institutions such as the family and the schools are supposed to socialize children into values, beliefs, and
commitments other than those of the economic system. However, as Messner and Rosenfeld note, "as
these noneconomic institutions are relatively devalued and forced to accommodate to economic
considerations, as they are penetrated by economic standards, they are less able to fulfill their distinctive
socialization functions successfully" (77). Thus, economic domination weakens the normative control
associated with culture.
The previous card and the next one are great to answer arguments that claim that you do not solve for
the root cause of crime and that other factors exist. These pieces of evidence are pretty decisive on the
fact that you solve the most important cause of crime because poverty affects all other potential causes.
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Helps Women
Women are disproportionately harmed by low wages. SBH.
David Madland and Nick Bunker June 20, 2012 [David Madland is Director of the
American Worker Project at the Center for American Progress Action Fund. Nick
Bunker is a Research Assistant with the project.] Women Are the Biggest Losers
from Failure to Raise Minimum Wage
https://www.americanprogressaction.org/issues/labor/news/2012/06/20/11682/womenare-the-biggest-losers-from-failure-to-raise-minimum-wage-2/
Women are disproportionately harmed by a low minimum wage because womenand especially women of
colorare much more likely hold low-wage jobs than men. The typical woman earns 77 cents for every dollar
the typical man does, and the fact that women are more likely to be minimum-wage earners than men
contributes to that disparity. This gap is especially distressing now that two-thirds of mothers are either the
breadwinners or co-breadwinners for their families.
In 2011 more than 62 percent of minimum-wage workers were women compared to just 38 percent of male
minimum-wage workers. Slightly more than 2.5 million women earn the minimum wage or less, while
approximately 1.5 million men do. This imbalance is even more drastic once you consider that women were just
46.9 percent of all employed workers in 2011.
!
Women of color are especially effected by a low wage. SBH.
David Madland and Nick Bunker June 20, 2012 [David Madland is Director of the
American Worker Project at the Center for American Progress Action Fund. Nick
Bunker is a Research Assistant with the project.] Women Are the Biggest Losers
from Failure to Raise Minimum Wage
https://www.americanprogressaction.org/issues/labor/news/2012/06/20/11682/womenare-the-biggest-losers-from-failure-to-raise-minimum-wage-2/
Female workers earning the minimum wage are also disproportionately workers of color. African American
women were 15.8 percent of female workers making the minimum wage in 2011 compared to 12.3 percent of
all employed workers. Similarly, Hispanic women were 16.5 percent of female minimum wage earners but were
only 12.5 percent of employed workers.
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Raising the minimum wage is a way to get women out of poverty and help increase their pay.
SBH.
Joy K. Rice [University of WisconsinMadison] Poverty, Welfare, and Patriarchy:
How Macro-Level Changes in Social Policy Can Help Low-Income Women
Journal of Social Issues, Vol. 57, No. 2, 2001, pp. 355374
Http://onlinelibrary.wiley.com/store/10.1111/0022-4537.00218/asset/00224537.00218.pdf?v=1&t=i3ijyji9&s=710010a6c580f1b07f26449f17ab998f4d12396a
1. Equal pay for equal work reduces poverty by 50%. In February 1999, the Institute for Womens Policy
Research and the AFL-CIO published Equal Pay for Working Families, which examined state-by-state
estimates of the wage gap between women and men, minorities and nonminorities, and union and nonunion
workers. The national study estimated the lost earnings of working women due to sex-based wage
discrimination and the probable changes in the poverty rates if working women received pay equal to mens in
comparable jobs. The key finding was that the average family loses nearly $4,300 annually because of wage
discrimi- nation and that poverty rates would drop by more than 50% if women received equal pay for equal
work. Although all groups of women would experience signifi- cant drops in the poverty rate if they were paid
wages equal to mens wages, the poverty rate for single working mothers would drop the most, from more than
25% to 12.6% (Institute for Womens Poverty Research, 1999). Efforts are underway in more than half the
states to introduce equal-pay legislation and to improve existing equal-pay laws. As one example, in Minnesota,
equal-pay legislation for all gov- ernment employees resulted in closing the wage gap from 3l% to 14% (Center
for Policy Alternatives, 1998).
How do women gain access to well-paying jobs? The Center for Policy Alter- natives (1998) summarizes key
policy changes and provisions: raise the minimum wage (two thirds of minimum-wage workers are women),
toughen enforcement of the Federal Equal Pay Act, pass legislation strengthening and giving information on
equal-pay rights, study public- and private-sector wages to assess pay equity; and support the movement to
supplement definitions of poverty with the self- sufficiency standard. Such changes would also help womens
pensions, for in no area is the wage discrepancy more glaring than in retirement: About 40% of women over 65
years are poor, but only 13% of men (Center for Policy Alterna- tives, 1998).
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Negative Evidence
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Employers Rights
Minimum wage laws are immoral because they coerce employers. LZ.
Jaana Woiceshyn [teaches business ethics and competitive strategy at the Haskayne
School of Business, University of Calgary, Canada]. Minimum Wage Laws are
Immoral. Captialism Magazine. New Romanticist. 2014.04.14
http://capitalismmagazine.com/2014/04/minimum-wage-laws-immoral/
Minimum wage laws are unethical because they, like other employment legislation such as affirmative
action, introduce government force into employment relationships which should be based on voluntary
trade between employers and employees. Businesses should be free to hire whom they choose and
negotiate pay based on the prospective employees value to the business. The employees are free to reject
the offers and to seek work with other companies that value more highly what they have to offer. Or, if the
employees do not have much to offer, they are free to upgrade their skills through further training.
Being able to follow what Ayn Rand termed the Trader Principleto trade value for value for mutual benefit
and by mutual consentis in the interest of both companies and employees. By hiring and compensating
employees based on their value, companies are able to be as productive as possible and maximize their
long-term profitability. This is in the self-interest of companies, in other words, their owners. (The fact
that some companies choose to hire employees based on irrational principles such as racial discrimination, does
not diminish the value of the Trader Principle. Companies not hiring on the basis of competence and
productivity will suffer the consequence of lower competitiveness and will be forced out of business.)
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We are saddling the employers with something that isnt their responsibility. LZ.
Worstall, Tom [Senior Fellow of the Adam Smith Institute.]. "The Moral Case Against
Raising The Minimum Wage." Forbes. Forbes Magazine, 6 Mar. 2014. Web. 03 Dec.
2014. <http://www.forbes.com/sites/timworstall/2014/03/06/the-moral-case-againstraising-the-minimum-wage/>.
Who is it that is determining the value of low here as in low wages? Its not the market itself which is an
entirely amoral calculator of what things, people and their labour are worth. Its not employers who are simply
responding to the markets in front of them. Theres enough people willing to work at $7.75 an hour to fill the
jobs that pay that rate, this is something that is neither moral nor immoral, its something that just is. The people
who are determining this value of low are us, the citizenry at large. That is, were all saying, collectively and
through the political system, that we think there are certain basics which any one of our fellow citizens should
be able to afford or do. In the case of SNAP its a certain standard of nutrition. If their activities (or
unemployment, or disability, or any other reason) mean that theyre not able to afford this standard then we
believe, again collectively as the citizenry, that they should be able to have this certain standard of nutrition
anyway.
Excellent, thats neither something nor an ambition that I have any problem with. Indeed I think its a
desirable part of a decent society, after all, we are all, collectively, rich enough and more to be able to
guarantee certain minimums to the less fortunate among us. However, heres where the moral point
comes in. If its us demanding that these standards must be met then it falls on us, the people doing the
demanding, to be the people doing the paying.
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After all, demanding that everyone gets to eat but also demanding that that guy over there has to pay for
it and dont touch my wallet isnt a particularly moral action.
Yet that is indeed what the original argument above is. Yes, we agree that people should have an income
large enough to be able to eat properly. But dont come and get it out of my taxes through SNAP, make the
people who employ low skill labour have it taken out of their incomes instead. For that again is indeed what the
argument here is. That the shareholders in WalMart, or the Mom and Pop sandwich operation employing
minimum wage workers, should see some of their profits being sent off, instead, into higher incomes for those
workers. We are, by trying to tackle this problem through a higher minimum wage insisting that it is
other people who must pay for our heartfelt moral position: that people should have enough to eat.
If we as a society are demanding minimum standards, then society should pay, not the
employers. LZ.
Worstall, Tom [Senior Fellow of the Adam Smith Institute.]. "The Moral Case Against
Raising The Minimum Wage." Forbes. Forbes Magazine, 6 Mar. 2014. Web. 03 Dec.
2014. <http://www.forbes.com/sites/timworstall/2014/03/06/the-moral-case-againstraising-the-minimum-wage/>.
And thus we come to my position, one that many will find rather odd. Ive no problem at all with, indeed
welcome, the idea that theres a certain minimum that all in our society should share. But this argument that a
rise in the minimum wage would be a good idea because it would reduce the costs of in-work benefits is, to me,
entirely the wrong way around. Precisely because we insist upon these minimum standards it should be us
that pay for them through our taxes. Rather than raise the minimum wage and dump the costs of those
standards on other peoples wallets rather than our own.
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Employees Rights
Employees should be able to bargain freely without the government. LZ.
Dorn, James A., Senior Fellow at the Cato Institute. "The Minimum Wage Is Cruelest to
Those Who Can't Find a Job." Cato Institute. The Cato Institute, 22 July 2013. Web.
08 Aug. 2014. <http://www.cato.org/publications/commentary/minimum-wagecruelest-those-who-cant-find-job>.
The minimum wage violates the principle of freedom because workers are not permitted to work at less
than the politically determined wage rate, even if they are willing to do so to get or retain a joband
employers are prohibited from hiring them. The minimum wage does nothing to increase the productivity of
low-skilled workers. Indeed, it prevents them from acquiring the skills and experience they need to move up the
income ladder. Discouraged workers may then drop out of the workforce and end up on welfare or drugs.
It is better for employees to be able to negotiate freely without the government. LZ.
Jaana Woiceshyn [teaches business ethics and competitive strategy at the Haskayne
School of Business, University of Calgary, Canada]. Minimum Wage Laws are
Immoral. Captialism Magazine. New Romanticist. 2014.04.14
http://capitalismmagazine.com/2014/04/minimum-wage-laws-immoral/
Being able to freely trade value for value is also in the interest of employees and prospective employees. Being
able to negotiate wages without government-mandated minimums will make unskilled and inexperienced
workers more attractive to employers. This would give job opportunities to young people in particular
and to those with fewer skills in general. Young people are often both inexperienced and unskilled and cannot
compete with older, more experienced and skilled workers when companies are forced to pay both the same
minimum, despite the lower productivity of the less experienced and less skilled young workers. The youth
unemployment rates (for 15 to 24-year olds) in the developed worldtypically at least twice as high as the rates
for the adult populationattest to that reality. (Although many in the youth age group go to school or work
part-time, the twice-as-high unemployment rates cannot be attributed to that alone but reflect the barrier to
youth employment created by the minimum wage laws.)
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Neg: Economy
Economy
The best studies show that increasing the minimum wage hurts employment. LZ.
Cahn, David, and Jack Cahn. "Popular Does Not Mean Practical: The Case Against the
Federal Minimum Wage." The Huffington Post. TheHuffingtonPost.com, 10 Apr.
2014. Web. 10 Dec. 2014. <http://www.huffingtonpost.com/david-cahn/populardoes-not-mean-pra_b_5128311.html>.
Indeed, economists who have crunched historical minimum wage data have found that raising the minimum
wage generally has negative effects on employment. A meta-analysis of 102 minimum wage studies conducted
by the National Bureau of Economic Research found that 67 percent of studies found negative employment
effects, 25 percent found no effect, and only 8 percent found a positive employment effect. Of the 33 most
robust studies, 85 percent of these point to negative employment effects. Surveys of businesses tell the same
story. According to the Wall Street Journal a $10 minimum wage would cause 54 percent of employers to
reduce hiring and 34 percent to begin immediate layoffs. Overall, the Congressional Budget Office (CBO) finds
that this would cost the US between five hundred thousand and one million existing jobs, while the American
Action Forum estimates its would cost the US 2.3 millions new jobs per year. It's no wonder then that
economists David Newmark, Mark Schweitzer and William Wascher found that a higher minimum wage results
in a net increase in the proportion of poor families, with the "losers" outnumbering the "winners."
Raising the minimum wage prevents entry level workers from getting a job. LZ.
Dorn, James A., Senior Fellow at the Cato Institute. "The Minimum Wage Is Cruelest to
Those Who Can't Find a Job." Cato Institute. The Cato Institute, 22 July 2013. Web.
08 Aug. 2014. <http://www.cato.org/publications/commentary/minimum-wagecruelest-those-who-cant-find-job>.
The minimum wage is unfair to low-skilled workers with little experience because it prices them out of
the labor market and prevents them from achieving the upward mobility that is the hallmark of a
dynamic free-market economy. If the Fair Minimum Wage Act is passed, workers who cannot produce at
least $10.10 per hour will not be able to find an entry-level job. When employers expect the wage rate to
increase by 40 percent over three years, they will take action today to substitute labor-saving methods of
production for the higher-priced labor. Job growth for younger, less-skilled workers will slow, benefits will be
cut, and part-time workers will take the place of full-time workers. Those adjustments will speed up if overall
business conditions are expected to be weak.
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Neg: Economy
Raising the minimum wage makes it harder for inexperienced workers to find jobs. LZ.
Adams, Mark, Research Fellow at the Mercatus Center at George Mason University.
"Raising the Minimum Wage Hurts the Poor." US News. U.S.News & World
Report, 11 Mar. 2013. Web. 08 Aug. 2014.
<http://www.usnews.com/opinion/blogs/economic-intelligence/2013/03/11/raisingthe-minimum-wage-wont-help-the-poor>.
Minimum wage workers tend be young and unskilled. Less than half of workers under the age of 25 are
currently employed and many rely on low paying opportunities to get their first break. The majority will earn a
raise within a year, but they currently lack the experience and skill to compete for higher paying jobs. Raising
the minimum wage makes it harder for these inexperienced workers to find a job, because businesses will
either eliminate positions or choose to hire someone with more experience at the higher mandated wage.
Minimum wage jobs could also be a pathway to retraining for workers facing a mismatch between their
skills and available openings. A higher minimum wage would limit such opportunities, and that's particularly
dangerous during this historically slow recovery.
An increase in the minimum wage would cost over half a million jobs. LZ.
Miron, Jeffrey. "CBO's Minimum Wage Report." Cato Institute. The Cato Institute, 20
Feb. 2014. Web. 08 Aug. 2014. <http://www.cato.org/blog/cbos-minimum-wagereportthe-increased-earnings-low-wage-workers-resulting-higher-minimum-wage>
In a new report, the Congressional Budget Office estimates that raising the federal minimum wage from its
current level of $7.25 an hour would raise the incomes of low-wage workers who remain employed while
lowering the incomes of low-wage workers who lose their jobs. CBOs middle estimate is that a $10.10
minimum wage would reduce total employment by about 500,000. These effects are exactly what textbook
economics predicts; the question is then how policy should regard this combination of good news for some,
bad news for others. On that score, the answer is obvious. A policy that alleges to help low-wage workers, yet
forces half a million to lose their jobs, is hard to reconcile with any sensible view of redistribution. People
with the lowest incomes are more appropriate targets of redistribution than people with higher incomes, yet the
minimum wage forces more people to have zero incomes. A minimum wage is therefore loony from the get-go,
even if one believes in a government safety net.
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Neg: Economy
An increase in the minimum wage would force costs and prices to go up. LZ.
Miron, Jeffrey. "CBO's Minimum Wage Report." Cato Institute. The Cato Institute, 20
Feb. 2014. Web. 08 Aug. 2014. <http://www.cato.org/blog/cbos-minimum-wagereportthe-increased-earnings-low-wage-workers-resulting-higher-minimum-wage>
And the minimum wages negative effects do not stop at its perverse impact on the distribution of income. The
minimum wage forces employers to substitute higher-wage workers or capital for low-wage labor, raising
costs and therefore prices. The minimum wage perpetuates the notion that evil employers, rather than
low skill, explain low wages. And the minimum wage pretends to fix a problem without imposing any costs,
except that the costs are merely hidden, not avoided.
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Neg: Economy
Macroeconomic analysis shows that the economy would decline and jobs would be lost if the
minimum wage was increased. LZ.
Sherk, James, and John L. Ligon. "Unprecedented Minimum-Wage Hike Would Hurt
Jobs and the Economy." The Heritage Foundation. The Heritage Foundation, 5 Dec.
2013. Web. 08 Aug. 2014.
<http://www.heritage.org/research/reports/2013/12/unprecedented-minimum-wagehike-would-hurt-jobs-and-the-economy>.
Proponents of minimum-wage increases argue that increasing minimum-wage workers pay would boost their
spending and stimulate the economy, offsetting potential job losses.[13] Macroeconomic modeling does not
support these claims. The Heritage Foundation used the IHS Global Insight macroeconomic model
which many financial institutions, manufacturers, and government agencies use to make economic
forecaststo estimate the consequences of increasing the minimum wage. The Global Insight modeling
accounts for minimum-wage workers higher pay, employer reactions to higher labor costs, and price increases
passed onto consumers. The model shows that increasing the minimum wage would hurt the economy on
netreal GDP would decline by $42 billion in 2017 relative to the baseline. Moreover, by 2017 the
legislation would reduce employment by 287,000 jobs annually.[14]
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Neg: Economy
An increase in the minimum wage would not help most people in poverty. LZ.
Congressional Budget Office. Congress of the United States. The Effects of a MinimumWage Increase on Employment and Family Income. February 2014.
https://www.cbo.gov/sites/default/files/44995-MinimumWage.pdf
The increased earnings for low-wage workers resulting from the higher minimum wage would total $31 billion,
by CBOs estimate. However, those earnings would not go only to low-income families, because many lowwage workers are not members of low-income families. Just 19 percent of the $31 billion would accrue to
families with earnings below the poverty threshold, whereas 29 percent would accrue to families earning
more than three times the poverty threshold, CBO estimates.
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Neg: Economy
Small businesses are harmed in the process because price increases in wage to workers
disincentives actual start ups. SBH.
Scott Shane [professor at Case western university] Listen to Small Business: Don't
Increase the Minimum Wage May 25 2012
Raising the minimum wage is shaping up to be an important issue this year, with several state legislatures
considering increases and other states putting the issue on the November ballot. For years, labor leaders have
been urging the U.S. Congress to raise the federal minimum wage. Small business associations have pushed
back, opposing any increase. Small business is right -- not just for itself, but for the U.S. A higher minimum
wage will cut employment, reduce access to the entry-level positions that lead to better jobs, increase poverty
and motivate teenagers to leave school. Lets start with why the minimum wage is bad for small business. Put
simply, it raises the cost of hiring at companies that employ low-wage workers. Faced with higher labor costs,
these businesses can try to raise prices, lay off workers or cut their profit margins. Competitive pressures
usually prevent them from boosting prices. That leaves them with the unpleasant choice of either cutting jobs or
accepting lower profits. Employees, of course, will be hurt if companies cut the number of low-wage jobs
because of a higher minimum wage. Wages depend on the value that people produce. If government tells
businesses they have to pay people more than that value, they will get rid of unproductive workers. In fact,
economists estimate that each 10 percent rise in the minimum wage leads to a 1 to 2 percent decline in the
employment of low-skilled workers.(pg.1)
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Neg: Economy
Living wages campaign suffers same ills as predecessors; destined to fail. LSS.
Ciscel, David H. "The Living Wage Movement: Building a Political Link from Market
Wages to Social Institutions." Journal of Economic Issues XXXIV.2 (2000): 527-35.
He is a professor of Economics at the University of Memphis.
The living wage campaign suffers from many of the problems of its predecessors. It is, in essence, a demand
that the wage system be abandoned in the process of provisioning a family. Clearly, the living wage campaign
has attempted to present its demands in a non-patriarchal environment, particularly with its emphasis on the
income needs of the single-parent family.
Building a set of social institutions that make the labor market take in account the type and size of family before
setting wage rates and benefit packages would be complex to say the least. Indeed, the experience of the late
twentieth century is that real wage rates often fall, even in an environment of rising real incomes.
While currently not politically viable, the living wage campaign probably is headed in the wrong direction.
Rather than emphasizing self-sufficiency, something the labor market will never provide semi-skilled
employees, movements for incomes based on basic family needs probably need to emphasize social subsidies
that are not means tested and are available for all families. In particular, work-related benefits-from health
coverage to child care--probably need to be separated from the workplace altogether, provided instead as part of
the social contract that work-based society has with its families.
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Imple
The only way for workers to benefit from living wage laws is if they are covered by laws that are implemented
and enforced. If few workers are covered and/or policies are not actually implemented or enforced, there is little
reason to think that workers will gain. Regarding implementation and enforcement, there have been problems
for living wage ordinances from the very beginning. Even after adopting the first living wage ordinance in
Baltimore, it took many months, rallies, public hearings, complaints, and fines before some firms started to
obey the law. As Stephanie Luce has documented, major post-passage struggles have been required in several
cities before the law was implemented. Based on extensive interviews with city administrators, living wage
advocates, and review of newspaper reporting on living wage laws, Luce considers more than half of all living
wage ordinances to have been only narrowly implemented25 (Luce 2005, 45). As she explains: In some
places, implementation seems to simply fall through the cracks: there is no single person in charge and no one
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who knows much about the ordinance. There are other cities in which the staff is incompetent, ineffective, or
personally opposed to the ordinances. There are also cities where the administration is outwardly opposed to the
ordinance and works to stall implementation, water down, or repeal the laws. Finally, some city councilors
and/or administrators continue to publicly support living wage ordinances but make it easy for employers to
receive waivers or exemptions from coverage. (Luce 2005, 46) In their study of the Los Angeles living wage
ordinance, Sander and Lokey found that enforcement, compliance, and discipline were all problems. Firms did
not submit required paperwork, site visits were not performed, and no action was taken against contractors
violating the policy. In their 18-month review of the ordinance, Sander and Lokey considered the discipline
process to be toothless, and one of several implementation problems limiting the effect of the ordinance
(Sander and Lokey 1998, 4). Sander and Lokey did indicate, however, that by late 1998 most implementation
issues were improving. More recent work by LAANE indicates that, as of 2001-02, virtually all firms surveyed
were in compliance with the wage requirements, but there may be problems with compliance with other
provisions.
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organized around a deal struck between a wage payer and wage receiver. And this is all the more remarkable in
as much as the vast bulk of human history displays economic systems without wages (neither serfs, nor slaves,
nor individuals who work alone, nor most collective work systems have used wages). Capitalisms history is in
part the history of the deepening conceptual hegemony of the wage. Thus, for example, the individual peasant
or craftsperson working alone has had to be renamed a self-employed person to revision a non-wage
production system as if it were waged.
Naturalizing the wage concept works to naturalize capitalist relations of production, the
employer/employee relation, not as one among alternative production systems but as somehow intrinsic
to production itself. Workers, trade unions, and intellectuals often cannot imagine production without
wages and hence wage payers juxtaposed to wage earners. This helps to make capitalism itself appear as
necessary and eternal much as the parallel theories celebrating feudalism and slavery performed the
same function for those systems of production. The naturalization of the wage system helps support the
notion that the fundamental goal of workers organization must be to raise wages.
Thus, no surprise attaches to the fact, these days, that one widespread kind of social criticism concentrates on
softening capitalisms negative impacts on workers and the larger society. It seeks to raise workers wages and
benefits and to make governments limit capitalists rapaciousness and the social costs of their competition. In
the US, this is what liberals do: from the minimalist oppositions within the Democratic Party to the demands
of social democrats and many radicals for major wage increases, major government interventions, and so on.
What always frustrates liberals and radicals is the difficulty of achieving these improved workers conditions
and the insecurity and temporariness of whatever improvements they do achieve. Today they bemoan yet
another roll-back of improvements, namely those won under FDRs New Deal, Kennedys New Frontier, and so
on.
You could use this as a link for a kritik that criticizes capitalism.
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The way to remove this capitalist ideology is through taking sides in the ongoing class
struggle. SBH.
Stephen Tumino [English Professor at Pitt] Pierre Bourdieu as New Global Intellectual
for Capital, The Red Critique 6, September/October,
http://redcritique.org/SeptOct02/pierrebourdieuasnewglobalintellectualforcapital.ht
m
It is only such a scientific knowledge of social totality as provided by classical Marxism that can produce
an understanding not only of the effects, but of the causes of inequality in capitalism and therefore of
what needs to be done to change it. By merely contesting the political dominance of capital and its
symbolic mystique through ethical performances of symbolic disinvestments in "cultural capital" while
failing to provide a scientific (i.e., materially causal) knowledge of the social, the figure of the new global
intellectual in Bourdieu's writings reinscribes the ruling ideas that as a totality make cultural changes at
the level of the superstructure more important than meeting the need for what Marx calls "theory as a
material force" (Reader 60)"theory [] capable of seizing the masses" because it "grasp[s] things by the
root" (60).
The "root" of social inequality is not "knowledge" but "labor". The differences in knowledges available in a
society reflect differences in labor, especially the amount of time people have after performing the socially
necessary labor required for them to live. For the majority this time is mostly spent in performing surplus-labor
for the capitalist who realizes a profit from it. This class division of labor between the many who are wageslaves for the few who own the means of production will not change with changes in lifestyle and knowledge,
by the voluntary sacrifice of the privileges that come with performing intellectual labor for example. It will only
change when the workers "expropriate the expropriators" (Marx Capital Vol. 1 929) and form "an association,
in which the free development of each is the condition for the free development of all" ("Manifesto" 506).
Because of the high technical level of development of the productive forces such a revolution presupposes
workers who have already become class conscious, i.e., "raised themselves to the level of comprehending
theoretically the historical movement [of class society] as a whole". In other words, the historical materialist
theorization of class consciousness in Marxism presupposes that "the time [...] of revolutions carried through by
small conscious minorities at the head of unconscious masses, is past" (Reader 570) as capitalism itself has
already produced a proletarian vanguard, that "most advanced and resolute section" ("Manifesto" 497) of "the
proletariat [that] is already conscious of its historic task and is continually working to bring this
consciousness to full clarity" (Reader 135) in the social movements.
What is required of the intellectual because of these conditions is not to perform exemplary actions but to
take sides in the ongoing class struggle at the level of theory where, "The only choice iseither bourgeois
or socialist ideology [for] in a society torn by class antagonisms there can never be a non-class or an
above class ideology" (Lenin What Is To Be Done? 41).
You can use this as an alternative in a capitalism kritik.
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EITC Counterplan
What EITC is. SBH.
Marr et. al. [Chuck Marr is the Director of Federal Tax Policy at the Center on Budget
and Policy Priorities. ; Chye-Ching Huang is a tax policy analyst with the Centers
Federal Fiscal Policy Team, where she focuses on the fiscal and economic effects of
federal tax policy. ; Sherman joined the Center as Senior Researcher in March
2004.] April 15, 2014 "Earned Income Tax Credit Promotes Work, Encourages
Childrens Success at School, Research Finds For Children, Research Indicates that
Work, Income, and Health Benefits Extend Into Adulthood"
http://www.cbpp.org/cms/?fa=view&id=3793
The Earned Income Tax Credit (EITC), which went to 27.9 million low- and moderate-income working families
in 2011, provides work, income, educational, and health benefits to its recipients and their children, a
substantial body of research shows. In addition, recent ground-breaking research suggests, the EITCs benefits
extend well beyond the limited time during which families typically claim the credit. The research indicates
that children of EITC recipients, for instance, do better in school, are likelier to attend college, and earn more as
adults. The Child Tax Credit (CTC), a related credit thats designed to help offset the cost of child-rearing, also
plays a major role in helping low-income working families. (pg. 1)
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The EITC works to increase productivity, decreases how many people need welfare, etc. SBH.
Marr et. al. [Chuck Marr is the Director of Federal Tax Policy at the Center on Budget and
Policy Priorities. ; Chye-Ching Huang is a tax policy analyst with the Centers Federal
Fiscal Policy Team, where she focuses on the fiscal and economic effects of federal tax
policy. ; Sherman joined the Center as Senior Researcher in March 2004.] April 15, 2014
"Earned Income Tax Credit Promotes Work, Encourages Childrens Success at School,
Research Finds For Children, Research Indicates that Work, Income, and Health Benefits
Extend Into Adulthood" http://www.cbpp.org/cms/?fa=view&id=3793
The EITC significantly increases the work effort of its recipients, according to substantial research over
the past 15 years.[7] EITC expansions between 1984 and 1996 accounted for more than half of the large
increase in employment among single mothers during that period, researchers found.[8] The most
significant gains in employment attributable to the EITC occurred among mothers with young children
and mothers with low education.[9] The EITC is particularly effective at encouraging work among single
mothers working for low wages,[10] and is considered among the most effective policies for increasing the
work and earnings of female-headed families. The EITC expansions of the 1990s appear to be the most
important single factor in explaining why female family heads increased their employment over 19931999,[11] University of Chicago economist Jeffrey Grogger has concluded. Those expansions, he found,
actually had a larger effect in increasing employment among single mothers than the 1996 welfare law. (See
Figure 1.)
In addition, women who were eligible to benefit the most from those EITC expansions apparently had
higher wage growth in later years than other similarly situated women.[12] Moreover, by boosting the
employment and earnings of working-age women, the EITC also boosts their Social Security retirement
benefits, which should result in lower poverty among them in old age. [13] (Social Security eligibility and
benefit levels are based on how much one works and earns.)By boosting employment among single
mothers, the EITC also produces large declines in the numbers of families that receive cash welfare
assistance. The EITC expansions of the 1990s induced more than a half a million families to move from
cash welfare assistance to work, research shows.[14] In fact, the research found, those EITC expansions
likely contributed about as much to the fall in the numbers of female-headed households receiving cash welfare
assistance from 1993 to 1999 as the time limits on cash assistance and other changes under welfare
reform.[15]Nor is there much evidence that when EITC benefits phase down as a familys income rises above
certain levels, workers substantially reduce their work hours.[16] Instead, research shows, the EITC has a
powerful effect in inducing many more workers to enter the labor force and go to work. (pg. 1)
You can use this as solvency for a counterplan (or counter advocacy) that says we should implement
EITC (Earned Income Tax Credit) rather a living wage.
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Likewise, researchers who studied nearly two decades of data on mothers and their children concluded that
additional income from the EITC raises the combined math and reading test scores of students by large
magnitudes. [24]
Research not directly on the EITC also suggests that income-boosting policies like the EITC boost school
performance. Researchers analyzing ten anti-poverty and welfare-to-work experiments found a consistent
pattern of better school results for low-income children in programs that provided more income. Each $1,000
increase (in 2001 dollars) in annual income the equivalent of a full CTC for one child for two to five
years led to modest but statistically significant increases in young childrens school performance on a number of
measures, including test scores. The researchers noted that their results have important implications for policies
like the EITC that link increases in income to increases in employment.[25] (pg. 1)
This could function as an impact to implementing EITC.
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preparers, personal care aides, retail salespersons, and janitors and cleaners was below a poverty-level
wage[38] in 2012.[39]
By supplementing the earnings of low-paid workers, nationally[40] the EITC and CTC lifted 10.1 million
people, including 5.3 million children, out of poverty in 2012 under the federal governments new Supplemental
Poverty Measure, which counts non-cash public benefits and refundable tax credit payments as income, as
many analysts favor. Of these 5.3 million children, the EITC alone lifted 3.3 million of them out poverty.[41]
Of the 10.1 million people whom the EITC and CTC lifted out of poverty, improvements in the credits
under the 2009 Recovery Act were responsible for raising about 1.5 million of them above the poverty
line (see Figure 4) about 900,000 people from the CTC improvements and another 600,000 from the
EITC improvements.[42](pg. 1)
This could function as an impact to implementing EITC.
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Harms Minorities/Youth
Huge disparities in how much women of color are paid and others. SBH.
Shetal Vohra-Gupta [PhD; Research Associate] 11/1/12 Women of Color and Minimum
Wage: A Policy of Racial, Gender, and Economic Discrimination
A stagnant or unchanging minimum wage dispropor- tionately harms women, especially women of color, because they are
more likely to be minimum wage earners than men. In 2011, women, who made up 47 percent of the total labor force,
constituted 62 percent of minimum wage workers, while men only represented 38 percent (Madland & Bunker, 2012)
(See Figure 2). The wage gap places women of color at a greater disadvantage, since African American and Hispanic
women make $0.64 and $0.56, respec- tively, for every dollar white men earn. This dispar- ity is concerning since femaleled households with children has increased by approximately 10% in the last decade (U.S. Census, 2010), and more
families than ever before depend on women as primary bread- winners. Within that group, the most marginalized are
single mothers (Shapiro, 2004). Policymakers
attribute the difficulty in reducing family poverty to falling wages among low-skilled workers and increas- ing rates of
single parenting (Berlin, 2007).
Living wage harms minorities and youth of color. It removes the chance to learn and become
better in a field. SBH.
Bridget Bush [Bridget Bush is a Louisville attorney ] 9/2/14 http://www.courierjournal.com/story/opinion/columnists/2014/09/02/raising-minimum-wage-hurtswomen-minorities/14955629/
Consider, moreover, who would get cut. Of the half-million jobs that the CBO projects would disappear if the
Obama increase is enacted, two-thirds belong to women. The layoffs and lost opportunity for work that a
minimum wage hike would cause therefore would hit women disproportionately hard. Minority youths who
already have nearly double the unemployment rates of white youths likewise would suffer
disproportionately. Indeed, the unintended consequence of Democrats raising the minimum wage produces
outcomes that if caused by Republicans would be slammed as sexist and racist.
Increasing the minimum wage distracts from the more serious issue of how to improve workers' skills so that
entry level jobs are the first step in long, productive careers, and not a purgatory where the unskilled languish
until the next time Democrats decide to give them a raise with other people's money.
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Black and Hispanic teens are more likely to become idle. SBH.
Mark Turner and Berna Demiralp 2000 [Mark Turner - Johns Hopkins University,
Berna Demiralp - Johns Hopkins University ] Higher Minimum Wages Harm
Minority and Inner-City Teens
However, this is not the end of the story. We also investigate the differential effects of the minimum wage
increase on subgroups by race and urban status. Differential analysis reveals important differences in the way
that black and Hispanic, and non-black, non-Hispanic teens would be affected by the proposed minimum wage
increase. We find that black and Hispanic teens initially employed and/or in school are more likely to become
idle following a minimum wage increase, while similarly-situated non-black, non-Hispanic teens are less likely
to become idle. For example, black and Hispanic teens initially enrolled and employed are 33.7 percentage
points more likely to become idle following a $1 minimum wage increase. In addition, our results suggest that
while black and Hispanic teens move out of employment and enrollment into idleness, non-black, non-Hispanic
teens are more likely to become employed.
Employers will look for higher skilled workers making it harder for youth to get a job. SBH.
ALEC [America Legislative Exchange Council helps develop innovative solutions in
partnerships with layers and businessmen.] The Effects of Raising a Minimum
Wage March 2014 http://www.alec.org/wpcontent/uploads/Raising_Minimum_wage.pdf
Even if employers do not decrease hiring, they will respond to higher labor costs by replacing the lowest-skilled
individuals with more high- ly-skilled employees, which prices inexperienced workers out of the market.
Further, the higher pay attracts more affluent individuals to en- ter the low-wage labor market, such as teenagers
from well-off families or adults looking to provide a secondary income to their households. The increased labor
supply makes it even more difficult to secure mini- mum wage jobs for those who most need them. According
to testimony provided by James Sherk of the Heritage Foundation, after minimum wage levels increase,
businesses employ more teenagers living in afflu- ent zip codes and fewer teenagers from lower-income zip
codes.
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For every 10% increase in the minimum wage, minority employment goes down 3.9% and
youth employment 6.6%. SBH.
ALEC [America Legislative Exchange Council helps develop innovative solutions in
partnerships with layers and businessmen.] The Effects of Raising a Minimum
Wage March 2014 http://www.alec.org/wpcontent/uploads/Raising_Minimum_wage.pdf
The effects on employment are even more pronounced for minority youth. A 10 percent increase in the
minimum wage decreases minority employment by 3.9 percent, with the majority of the burden falling on
minority youth whose employment levels will decrease by 6.6 percent.
!
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For every 10 % increase in the minimum wage, there will be a 4% increase in food and a .4%
increase in prices overall. SBH.
ALEC [America Legislative Exchange Council helps develop innovative solutions in
partnerships with layers and businessmen.] The Effects of Raising a Minimum
Wage March 2014 http://www.alec.org/wpcontent/uploads/Raising_Minimum_wage.pdf
These results are consistent with most of the economic literature on the subject. Sara Lemos of the Institute for
the Study of Labor (IZA) looked at more than 20 papers on the subject and found that most studies predict- ed a
10 percent increase in the minimum wage would result in a 4 per- cent increase in food prices and a 0.4 percent
increase in prices overall.
Unfortunately, the businesses hit hardest by an increase to the mini- mum wage are not only the types of places
where low-income people are employed, but also businesses frequented by low-income consumers. Food prices are of particular importance to people living near or below the poverty line as they tend to
spend a greater percentage of their family budget on food.
An increase in prices makes the living wage once again insufficient funds to live. SBH.
ALEC [America Legislative Exchange Council helps develop innovative solutions in
partnerships with layers and businessmen.] The Effects of Raising a Minimum
Wage March 2014 http://www.alec.org/wpcontent/uploads/Raising_Minimum_wage.pdf
The low-wage employees who experience an increase to their wages due to a minimum wage increase will have
the benefit of higher wages largely offset by higher prices. Additionally, non-minimum wage earn- ers will face
higher prices without the corresponding increase in wages. Thus, they will likely cut back spending to
compensate. These cutbacks in spending may also result in substitutions toward cheaper, lower qual- ity goods.
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economic-case-for-a-universal-basic-income/
A UBI would score well by three of the four criteria by which we evaluate transfer programs: It would be
effective in raising household incomes at least to the poverty level (as long as the benefit is set at that level or
higher). It would provide substantial work incentives. Because there is no reduction of benefits as earned
income rises, it would avoid the problems of cliffs and high effective marginal tax rates for low-income
households and second earners. (For readers familiar with the economic terms, a UBI would have an income
effect on labor supply but no substitution effect, unlike current income support programs, which typically
have both.) It would be administratively efficient. It would require no verification of any personal characteristic
or behavior other than the existence of the beneficiary. The program could be integrated with the existing
federal tax system. For example, households in the class for whom the poverty line is $20,000 would receive the
full $20,000 in cash only if they had no earned income. Those with earned income from $1 to $100,000 would
receive a payment equal to $20,000 minus taxes due, that is, minus 20 percent of their earned income. Those
earning more than $100,000 would get a credit of $20,000 toward taxes due.
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Affirmative Counters
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Economists Card and Krueger concluded that there was no loss to employment from a modest
increase in wages. LZ.
Gertner, Jon, Contributing Writer for the Magazine. "What Is a Living Wage?" The New
York Times. The New York Times, 14 Jan. 2006. Web. 01 Dec. 2014.
<http://www.nytimes.com/2006/01/15/magazine/15wage.html?pagewanted=all&_r=0
>.
The tenor of this debate began to change in the mid-1990's following some work done by two Princeton
economists, David Card (now at the University of California, Berkeley) and Alan B. Krueger. In 1992, New
Jersey increased the state minimum wage to $5.05 an hour (applicable to both the public and the private
sectors), which gave the two young professors an opportunity to study the comparative effects of that raise on
fast-food restaurants and low-wage employment in New Jersey and Pennsylvania, where the minimum wage
remained at the federal level of $4.25 an hour. Card and Krueger agreed that the hypothesis that a rise in
wages would destroy jobs was "one of the clearest and most widely appreciated in the field of economics."
Both told me they believed, at the start, that their work would reinforce that hypothesis. But in 1995, and again
in 2000, the two academics effectively shredded the conventional wisdom. Their data demonstrated that a
modest increase in wages did not appear to cause any significant harm to employment; in some cases, a
rise in the minimum wage even resulted in a slight increase in employment.
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Studies cant change peoples minds because the debate is too politically charged. LZ.
Gertner, Jon, Contributing Writer for the Magazine. "What Is a Living Wage?" The New
York Times. The New York Times, 14 Jan. 2006. Web. 01 Dec. 2014.
<http://www.nytimes.com/2006/01/15/magazine/15wage.html?pagewanted=all&_r=0
>.
Card and Krueger's conclusions have not necessarily made philosophical converts of Congress or the current
administration. Attempts to raise the federal minimum wage - led by Senators Edward M. Kennedy on the left
and Rick Santorum on the right - have made little headway over the past few years. And the White House went
so far as to temporarily suspend the obligation of businesses with U.S. government construction contracts to pay
so-called prevailing wages (that is, whatever is paid to a majority of workers in an industry in a particular area)
during the rebuilding after Hurricane Katrina. David Card, who seems nothing short of disgusted by the
ideological nature of the debates over the wage issue, says he feels that opinions on the minimum wage are so
politically entrenched that even the most scientific studies can't change anyone's mind. "People think we're
biased, partisan," he says. And he's probably right. While Card has never advocated for or against raising the
minimum wage, many who oppose wage laws have made exactly those assertions about his research.
Nonetheless, in Krueger's view, he and Card changed the debate. "I'm willing to declare a partial victory,"
Krueger told me. Some recent surveys of top academics show that a significant majority now agrees that a
modest raise in the minimum wage does little to harm employment, he points out.
Convention economic analysis doesnt work when analyzing the minimum wage. LZ.
Congressional Budget Office. Congress of the United States. The Effects of a MinimumWage Increase on Employment and Family Income. February 2014.
https://www.cbo.gov/sites/default/files/44995-MinimumWage.pdf
However, conventional economic analysis might not apply in certain circumstances. For example, when a firm
is hiring more workers and needs to boost pay for existing workers doing the same workto match what it
needs to pay to recruit the new workershiring a new worker costs the company not only that new workers
wages but also the additional wages paid to retain other workers. Under those circumstances, which arise more
often when finding a new job is time-consuming and costly for workers, increasing the minimum wage means
that businesses have to pay the existing workers more, whether or not a new employee was hired; as a result, it
lowers the additional cost of hiring a new employee, leading to increased employment. There is a wide range of
views among economists about the merits of the conventional analysis and of this alternative.
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A decreasing demand for labor does not necessarily mean that employees are harmed. In fact
they actually get more free time. BG
Larry Hubich and Erin Weir. "Minimum wage hike can benefit Sask. Economy." The
Star-Phonenix; August 31, 2012. Hubich is president of the Saskatchewan
Federation of Labour. Weir is president of the Progressive Economics Forum.
But even if raising the minimum wage reduced employers' demand for labour, it would still benefit
employees. The vast majority of minimum-wage work is in areas such as fast food and retail, which have
variable shifts and hours. If these employers want less labour, they cut back hours rather than lay off
workers. In reality, a fastfood restaurant would likely require the same amount of labour since it could not
substitute robots or other capital equipment for workers. Our proposal is to phase in the 16 per cent increase in
the minimum wage. For argument's sake, imagine that the restaurant responds by cutting paid hours by 16 per
cent. Its employees would still earn the same total income as before and gain more free time, with the
wage increase offsetting the decrease in hours worked. Opponents of a higher minimum wage cannot get
away with simply suggesting that it might somehow slightly reduce demand for labour at the margin. They
would have to prove that paid hours would fall by a larger percentage than the increase in wages. And that is not
what the evidence indicates.
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Early studies prove that living wage does not decrease employment. BG
Jeff Chapman and Jeff Thompson. The economic impact of local living wages. February
15, 2006. Chapman is an Assistant Research Professor at the Political Economy
Research Institute at the University of Massachusetts. Thompson is an economist
on the Federal Reserve Board.
A frequently expressed concern about living wage ordinances is that the increased cost might decrease
employment opportunities for low-skilled workers by causing employers to hire fewer workers or even
lay off employees. The employment impact of living wage ordinances is a primary focus of most recent living
wage studies. In attempting to answer the question of whether or not living wage ordinances have a significant
impact on employment, different researchers have used a variety of approaches, ranging from qualitative
interviews with service contractors and affected workers, to detailed before-and-after analysis of impacted
firms, to econometric analyses of readily available labor market data. Most of the available studies have
concluded that there have been either no or only small employment losses as a result of adopting living
wages. At the time when the earliest analyses were conducted, there was not enough data to
quantitatively assess the impact that living wage laws had on employment. Instead, researchers relied on
qualitative surveys to develop an impression of the potential impacts on employment. In their 1996 study,
researchers from Preamble interviewed 31 contractors affected by the wage increase. None of the firms,
including the janitorial services most heavily impacted by the increase, reported reducing staffing levels
as a result of the living wage requirement (Preamble 1996, 10). In 1999, Niedt interviewed 26 workers
employed in jobs affected by the Baltimore living wage ordinance. Based on questions about conditions at
their workplaces, Niedt concluded there was no evidence that employment levels or working time had
changed because of the living wage (Niedt 1999, 27).
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The only study that proves that job loss occurs is the Neumark and Adams study. However,
this study is completely flawed. BG
Jeff Chapman and Jeff Thompson. The economic impact of local living wages. February
15, 2006. Chapman is an Assistant Research Professor at the Political Economy
Research Institute at the University of Massachusetts. Thompson is an economist
on the Federal Reserve Board.
Only read this if they bring up Neumark and Adams. And do not read the whole thing. Chose which
points you think are the best in refuting Neumark and Adams. However, this evidence is pretty damning
of anyone who is relying on Neumark and Adams.
A series of studies by Neumark and Adams are an exception to the general findings of studies of
employment effects. They report significant decreases in employment as a result of cities adopting living wage
policies. In at least five separate papers, Neumark and Adams examine the effects of living wage laws by
comparing the experience of the lowest-paid workers in cities with living wage laws to those in cities without
such laws.19 In each of their studies, Neumark and Adams report that the workers in living wage cities have
experienced positive wage effects, but negative effects on employment relative to workers in non-living wage
cities. While Neumarks and Adams research has received wide attention, it has also been criticized by a
number of economists, especially work by Brenner, Wicks-Lim, and Pollin. While it is not possible to fully
address all of the criticisms in this review, below is a brief summary. To begin with, the data source used in
the Neumark and Adams studies is the Current Population Survey (CPS), a national survey used by the
Bureau of Labor Statistics to measure unemployment, wages, and other labor market outcomes. While
an excellent data source for many purposes, it is inappropriate for the task of analyzing the impact of
living wage laws. Given that in some communities the living wage law only impacts a few hundred
workers, it is unlikely that any affected workers are surveyed by the CPS at all in some communities.
Even in Los Angeles, with one of the broadest of living wage ordinances, Brenner, Wicks-Lim, and Pollin
estimate that one year of CPS data would likely include about eight affected workers20 (Brenner, Wicks-Lim,
and Pollin 2002, 13). In addition, the CPS does not contain data on the workers employer, making it impossible
to positively identify those eight workers if they do appear in the survey. Using the CPS to analyze the
economic effects of living wage laws makes finding a needle in a haystack look like a relatively simple chore,
which is why most researchers have eschewed it for the more costly and time-intensive process of administering
new surveys targeted specifically to be able to calculate the impacts of living wages. These surveys reflect the
experiences of firms and workers actually impacted by living wage ordinances, while the CPS data at best allow
Neumark and Adams to analyze a broad swath of the more general, low-wage workforce. Neumark and Adams
report that their findings are driven by laws that extend the living wage requirement to firms who are recipients
of business assistance (such as tax breaks). They report that laws that only cover employees working on
municipal contracts (the majority of policies) do not have significant impacts on wages or employment. The
finding that laws covering business assistance drive the results casts doubt on the studies because most
observers believe the business assistance extensions to be weakly implemented or even redundant. Brenner et
al. have argued that a large share of the cities with business assistance provisions had not actually implemented
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Aff Counters: Jobs
this part of the law during the time studied by Neumark and Adams; while these provisions exists on paper,
firms have not actually been required to raise wages because of them.21 Economic development expert Timothy
Bartik considers the effects identified by Neumark and Adams unrealistic since, large economic development
subsidies typically only go to new and expanding manufacturing companies[which]are a small share of the
labor market and pay high enough wages that few workers would be affected by living wages (Bartik 2004,
290). Bartiks assessment is supported by Elmores survey, which found that many business subsidy programs
already emphasized attracting high-wage jobs, so living wage laws effectively formalized and reinforced
existing practices (Elmore 2003, 2). In order to rule out the possibility that their findings were spurious,
Neumark and Adams calculated the wage and employment effects for two groups of workers they call
covered and non-covered workers. Since living wage beneficiaries cannot be identified directly in the
CPS, they used a classification scheme that ends up including unreasonably large portions of the
workforceover 85% of the lowest-paid one-fourth of workers in cities with living wage ordinances are
classified as covered (Neumark 2002, 60). Referring to the Los Angeles example, Fairris estimates that
fewer than 10,000 workers benefited from the living wage ordinance, but Neumarks and Adams
classification scheme proceeds as if approximately 450,000 workers received a raise under the
ordinance!22 The size of the poverty reduction effects reported by Neumark and Adams are also simply
too large given that living wage ordinances affect relatively few workers (Bartik 2004, 290). Similarly, the
disemployment effect reported by Neumark and Adams is unrealistic, equivalent to 91% of the total
number of workers most other researchers have estimated to be affected (Fairris and Reich 2005, 10).
Brenner et al. found that Neumarks and Adams key findings are extremely sensitive to the inclusion of
workers from Los Angeles earning less that the state minimum wage.23 Since most firms affected by the Los
Angeles ordinance are also covered by the states minimum wage and can generally be expected to be in
compliance with it, it is doubtful that workers not covered by the minimum wage would be potentially
covered by the living wage law.24 Because of these factors, it is unlikely that the differences in wages,
employment, and poverty between the two groups of cities (living wage and non-living wage) are due to
living wage ordinances. As Richard Freeman notes, any of a host of uncontrolled factors that change the
economy in an area exclusive of a living wage ordinance could explain the empirical patterns [observed by
Neumark and Adams] (Freeman 2005, 24). All told, Neumarks and Adams results are simply not
believable. Their econometric analysis shows that, on average, metropolitan areas with business
assistance provisions tended to have more negative employment outcomes and more positive wage
outcomes than other cities during the time studies. For all of the reasons discussed above, however, there
is little reason to believe that these results are capturing the effects of living wage ordinances. The effects
measured by Neumark and Adams are too large to be reasonable, the data source they use is inadequate
to capture what they are hoping to measure, and there are too many other possible factors that could be
driving their findings.
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Aff Counters: Private charities
efficiency is dependent on the standard assumptions of perfect information, perfect competition, and lack
of market failure; at the same time, there must be no unanticipated inflation(85). When Chile largely
privatized its Social Security, Chileans often operated from misinformation or outright lack of information(86).
Inflation further degraded the benefits, and by 1987, Chilean labor economist Jaime Ruiz-Tagle estimated that
only 22 percent of Chilean workers made a salary that might allow them to retire with more than minimum
benefits(87).
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A living wage does not increase the costs for the government. BG
Jeff Chapman and Jeff Thompson. The economic impact of local living wages. February
15, 2006. Chapman is an Assistant Research Professor at the Political Economy
Research Institute at the University of Massachusetts. Thompson is an economist
on the Federal Reserve Board.
One frequently raised concern is that the cost of the living wage might be passed onto the municipality
through higher prices for contracts. If contract prices do increase, the municipal government will be
faced with cutting services, raising taxes to pay for the higher costs, finding ways to become more
productive, or some combination of the three. A number of studies have examined changes in municipal
contract costs resulting from living wage laws. In general, the evidence from enacted ordinances, as well
as the more carefully prepared prospective studies, shows that the overall cost of contracts does not rise
significantly. In 1996, one year after the implementation of the first modern living wage ordinance in
Baltimore, the Preamble Center for Public Policy published a study reviewing the fiscal costs of the ordinance.
The Preamble study used data on city contracts and interviews with contractors and found that, in the first year
under Baltimores living wage law, the real cost of city contracts actually decreased. Nominal contract costs
rose 0.2%, but after adjusting for inflation costs declined by 2.4%. Expenses associated with implementing the
law and monitoring contractors compliance were also shown to be minimal, with the City allocating about 17
cents per person annually for this purpose (Weisbrot and Sforza-Roderick 1996, 10).
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Poor employer pay records at fault for not enforcing NMW, not government. LSS.
Croucher, Richard, and Geoff White. "Enforcing A National Minimum Wage." Policy
Studies 28.2 (2007): 145-61.
Poor employers pay records are a fundamental problem. Clearly, the effort that many COs put into helping
small employers to improve their records represents a considerable, previously unidentified, public subsidy to
them. It also detracts from COs main work. Many employers are unaware that the burden of proof in NMW
cases rests with them. Though penalties for inadequate records exist and could be increased, COs appear
reluctant to use existing powers. For example, at the extreme, criminal sanctions exist in Section 31 of the
NMWA for employers obstructing Compliance Officers or destroying or falsifying records but these have never
been used. HMRC is reluctant to use scarce resources in taking action against employers for the lesser offence
of failing to keep adequate records for four reasons. First, it delays payments to workers. Second, it is felt that it
will have limited demonstration effects on other employers. Third, it carries the risk of failure. Fourth, notices
end worker anonymity if the employer appeals. Yet inadequate records encourage Compliance Officers to place
workers in an exposed position to compensate for the information deficit. For HMRC to initiate a number of
well-publicised cases (possibly where falsification was involved) might improve employer awareness of the
potential costs. However, this would be a labour-intensive diversion from other enforcement activity and
therefore raises the wider question of governmental willingness to increase enforcement resources.
Publicity key reason NMW can be ineffective; not government interference. LSS.
Croucher, Richard, and Geoff White. "Enforcing A National Minimum Wage." Policy
Studies 28.2 (2007): 145-61.
Self regulation is predicated on widespread awareness of NMWA requirements, but the NMWs complexity
creates confusion among employers, especially about how the three different rates are applied. This complexity
is also a problem in workers being unable to identify whether they qualify or not. Our research therefore
confirms the earlier identification of complexity as an issue (Skidmore, 1999, p. 433). Achieving adequate
publicity for a complex system is difficult, and simplification, particularly by reducing the number of rates and
exemptions would assist. If the existing rates and exemptions were to be retained, clarity as to when they apply
is needed. Three relatively simple measures could be taken to publicise employers duties. First, NMW
information could be sent to employers with their annual tax pack. Second, the P60 form could be changed to
include hours and earnings, allowing calculation of the hourly rate, automatically alerting HMRC to possible
cases. Third, regular advertisements in the trade press, commonly read by employers in low paid industries like
hairdressing and hospitality, would also be helpful.
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NMW awareness programs can increase effectiveness, thus proving role of government vital.
LSS.
Croucher, Richard, and Geoff White. "Enforcing A National Minimum Wage." Policy
Studies 28.2 (2007): 145-61.
Most importantly, the government needs to adopt a more comprehensive approach to informing workers of their
rights. Despite the HMRC Helpline, low awareness exists about how to process a claim and workers right to
anonymity. There is an obvious need for information to reach all workers. Since this is difficult to achieve,
putting NMW information on pay slips and requiring slips to show compliance as recommended in the LPCs
first report but rejected by the Government (Low Pay Commission, 1998, p. 151) would make the relevant
information more widely available. Moreover, it would even help those workers unable to read it, as it would
disseminate the information sufficiently widely for it to be seen by their workmates and probably for it to be
discussed in the workplace. Publicity and advice also needs to address the misconception among workers that
the NMW only applies to full-time or to certain proper jobs.
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Aff Counters: EITC counterplan
eligible for the EITC would also help benefit workers. The end result is both greater employment and more of
the EITC subsidy going to the intended recipients, low-wage workers and their families.
Low-wage workers are eligible for a variety of benefits aimed at boosting incomes or helping them afford
basics, such as housing, health care, or childcare. This is important since many basics, especially health care,
childcare, and housing, are too expensive at market rates for low-income workers and their families. Childcare
alone can eat up a large portion of a minimum wage workers income. It is imperative that these programs work
in tandem and that Congressand state policymakersconsider the interaction effects of changing any of these
policies. In many cases, the states set the rules for program eligibility, with some guidelines from the federal
government, so engaging them in this conversation is a must.
In the mid-1990s when Congress implemented welfare reform, Congress did a very good job putting all these
pieces together by looking at the benefits and income supports for low-wage workers and their families as a
package. Within a short span of time, Congress implemented welfare reform, while also raising the minimum
wage, expanding the EITC, expanding access to childrens health through the State Childrens Health Insurance
Program, and expanding childcare subsidies. Only by putting a full basket of policies together will low-wage
workers be able to rise out of poverty and into the middle class. The minimum wage is a core piece of this
puzzle, but it is not the only piece. (See Figure 2.)
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Negative Counters
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AT: Rawls
Rawls wouldve supported a guaranteed social minimum rather than a minimum wage. LZ.
Bungay, Felix. "John Rawls: For School Choice, Against the Minimum Wage." Bleeding
Heart Libertarians. N.p., 12 June 2013. Web. 10 Dec. 2014.
<http://bleedingheartlibertarians.com/2013/06/john-rawls-for-school-choice-againstthe-minimum-wage/>.
What about the minimum wage then? Well in an interview with PBS, Samuel Freeman said Rawls was
opposed to the minimum wage (meanwhile the Economist tells us that Obamas plan to raise the minimum
wage makes him a Rawlsian thats poor scholarship): He [Rawls] thought we ought to get rid of a minimum
wage and let the labor market just go as low as it would and let employers just pay two, three dollars an hour if
they could and let the government come in and supplement that.
And what form did Rawls believe this supplement ought to take? Well, he again drew on Milton Friedman and
argued for a negative income tax. When discussing the institutions associated with the second principle
(chapter 5 of ToJ), Rawls says that the government guarantees a social minimum either by family
allowances and special payments for sickness and unemployment, or more systematically by such devices
as a graded income supplement (a so-called negative income tax).
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Rawls implied that tax-and-transfer policies are better than a minimum wage. LZ.
Rogers, Brishen [Assistant Professor of Law, Temple University James E. Beasley School
of Law], Justice at Work: Minimum Wage Laws and Social Equality (April 26,
2014). Texas Law Review, Forthcoming; Temple University Legal Studies Research
Paper No. 2014-08. Available at SSRN: http://ssrn.com/abstract=2318559
It is of course unsurprising that legal economists would focus upon questions of efficiency rather than justice.
What may be more surprising is that the minimum wage has also troubled legal scholars within another major
branch of AngloAmerican normative legal theory, the egalitarian liberalism of heirs to John Rawls.6 (While
philosophical liberalism is of course far broader than Rawls et al., for ease of exposition this Article will use the
term liberals to denote Rawls and his heirs and liberalism to denote their thought.7 ) Liberals insist that
justice is a matter of fairness, especially for societys worst off.8 But some prominent liberalsincluding
Rawls himselfhave implied that tax-and-transfer policies are preferable to minimum wage laws as
means of achieving distributive justice. Indeed, liberals priority concern for societys worst off may
render the minimum wage especially problematic since those with few skills or marginal labor market
connections face the greatest likelihood of job loss after a mandated wage increase. A leading liberal tax
scholar has, therefore, proposed a system of unconditional cash transfers to poor citizens in part on the
grounds that doing so would help clear the way for repealing minimum wage laws.
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Cases
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Aff Case
Affirmative Case
I affirm todays resolution, Resolved: Just governments ought to require that employers pay a living wage.
I offer the following definition of a living wage:
Investopedia. Living Wage. 2014. http://www.investopedia.com/terms/l/living_wage.asp. Investopedia is a
website owned by Forbes Digital.
A theoretical wage level that allows the earner to afford adequate shelter, food and the other necessities
of life. The living wage should be substantial enough to ensure that no more than 30% of it needs to be
spent on housing. The goal of the living wage is to allow employees to earn enough income for a
satisfactory standard of living.
Because governments are charged with the well being of their people, my core value in todays debate is
societal welfare. To uphold this value, my criterion in todays debate is utilitarianism. Utilitarianism is the
principle of doing the greatest amount of good for the greatest number of people. A living wage ensures this by
providing both economic and social benefits to a huge portion of society.
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Aff Case
compelling. There is little question that growing up in extreme poverty exerts powerful pressures toward
crime. The fact that those pressures are overcome by some individuals is testimony to human strength
and resiliency, but does not diminish the importance of the link between social exclusion and violence.
Indeed, experts argue that a specific social support structure is important in reducing crime.
Ronald C. Kramer. Poverty, Inequality, and Youth Violence. July 13 2014 .
http://www.umich.edu/~psycours/561/kramer.htm. Professor of sociology and director of the Criminal Justice
Program at Western Michigan University.
One of the most significant ways in which economic deprivation and social exclusion can lead to youth
violence is by inhibiting or breaking down the social supports that affect young people. Cullen (1994)
reviews research that supports his proposition that "America has higher rates of serious crime than other
industrial nations because it is a less supportive society" (531). He notes studies that have demonstrated
the corrosive effect of America's culture of excessive individualism and pursuit of material gain without
regard to means (Messner and Rosenfeld 1997). This competitive pursuit of the American Dream not
only encourages individuals to obtain material goods "by any means necessary"; it also inhibits the
development of a "good society" in which concern for community and mutuality of support dominate.
Cullen (1994) also points out that "economic inequality can generate crime not only by exposing people
to relative deprivation but also by eviscerating and inhibiting the development of social support
networks" (534). Moving down from the national level, Cullen (1994) argues that "the less social
support there is in a community, the higher the crime rate will be" (534). He reviews evidence that
"governmental assistance to the poor tends to lessen violent crime across ecological units.
Thus, a government policy that required employers to pay a living wage would have several important
consequences. First, it would send a social message to communities that a decent standard of living is an
important value of the community. This would enhance the social fabric that prevents crime. Second, it would
indeed enable those who are at risk of committing crime to lead productive lives under the law; there would be
less incentive to commit crime. In all, societal welfare would increase as a result of less crime.
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Aff Case
Contention Two: A living wage would benefit women.
Unfortunately, we still live in an age where discrimination against certain groups happens. Women are
discriminated against in the workplace and this has profound social implications.
David Madland and Nick Bunker June 20, 2012 [David Madland is Director of the American Worker Project
at the Center for American Progress Action Fund. Nick Bunker is a Research Assistant with the project.]
Women Are the Biggest Losers from Failure to Raise Minimum Wage
https://www.americanprogressaction.org/issues/labor/news/2012/06/20/11682/women-are-the-biggest-losersfrom-failure-to-raise-minimum-wage-2/
Women are disproportionately harmed by a low minimum wage because womenand especially
women of colorare much more likely hold low-wage jobs than men. The typical woman earns 77
cents for every dollar the typical man does, and the fact that women are more likely to be minimumwage earners than men contributes to that disparity. This gap is especially distressing now that twothirds of mothers are either the breadwinners or co-breadwinners for their families.
In 2011 more than 62 percent of minimum-wage workers were women compared to just 38 percent of
male minimum-wage workers. Slightly more than 2.5 million women earn the minimum wage or less,
while approximately 1.5 million men do. This imbalance is even more drastic once you consider that
women were just 46.9 percent of all employed workers in 2011.
So, when we are talking about the benefits of a living wage for women, we are discussing two major issues. The
first is the direct benefit of millions of women who would see their wages increase. This alone should be
enough to affirm because we are seeing a direct increase in the welfare of millions of people, many of whom
support a family. Additionally, there are crucial impacts that would reverberate throughout society. A living
wage paid to women would be another important step in gender equality. By implementing a policy that attacks
this problem, we have the chance to change the perception of womens power in the work place, which could
have broader benefits to social welfare.
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Aff Case
Contention Three: A living wage would benefit the overall economy of a society.
When assessing societal welfare, we should take a broad approach. Economic analyses of the impact of a living
wage show that it would greatly benefit society on balance.
David Cooper. Raising the Federal Minimum Wage to $10.10 Would Lift Wages For Millions and Provide a
Modest Economic Boost. Economic Policy Institute Briefing Paper. December 19, 2013. Briefing Paper #371.
http://s1.epi.org/files/2014/EPI-1010-minimum-wage.pdf
Economists generally agree that low-wage workers are more likely than any other income group to
spend any additional earnings they receive, largely because they must in order to meet their basic needs.
Higher-income individuals, corporations, and beneficiaries of corporate profits are more likely to save at
least a portion of any additional income. Thus, in a period of depressed consumer demand, raising the
minimum wage can provide a modest boost to overall economic activity because it shifts income to
workers who are very likely to spend it immediately. Indeed, recent research from the Federal Reserve
Bank of Chicago finds that raising the federal minimum wage to $10 could increase U.S. GDP by up to
0.3 percentage points in the near term
Cooper also goes on to say that,
Using standard fiscal multipliers, we would expect that increasing the federal minimum wage from
$7.25 to $10.10 would generate a net increase in economic activity of $22.1 billion over the phase-in
period. This additional GDP would support roughly 85,000 new jobs
Beyond simple measures of spending and GDP growth, providing a living wage may increase productivity of
workers.
Boushey, Heather, "Understanding How Raising the Federal Minimum Wage Affects Income Inequality and
Economic Growth - Washington Center for Equitable Growth." Washington Center for Equitable Growth. The
Washington Center for Equitable Growth, 12 Mar. 2014. Web. 10 Dec. 2014.
<http://equitablegrowth.org/research/understanding-the-minimum-wage-and-income-inequality-and-economicgrowth/>.
One reason that employment has not been shown to fall due to raising the minimum wage is because
higher wages can make workers more productive and therefore more valuable to their employer.
Economists call this the efficiency wages theory. There is an extensive literature on efficiency wage
theory, with notable contributions Nobel Laureates Joseph Stiglitz and George Akerlof, which suggest
that paying more than the market-clearing wage can make firms more productive.
As the White House pointed out last week, higher wages can boost productivity, increase morale,
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Aff Case
reduce costs, and improve efficiency. Here are just two academic studies that prove these points. John
Schmitt, a Senior Economist at the Center for Economic and Policy Research, finds empirical economics
research suggesting efficiency gains. And in a 2011 study, Georgia State University economists Barry
Hirsch and Bruce Kaufman, along with Tetyana Zelenska from Innovations for Poverty Action,
examined the effect of a federal increase in the minimum wage on 81 restaurants in Georgia and
Alabama. In their survey, managers reported that they could identify possible non-wage savings and
productivity improvements in response to the minimum-wage regulations. It is possible that lower costs
stemming from these changes could outweigh the costs of paying a higher minimum wage.
Finally, an increase in the minimum wage would decrease turnover.
Boushey, Heather, Executive Director and Chief Economist, Washington Center for Equitable Growth.
"Understanding How Raising the Federal Minimum Wage Affects Income Inequality and Economic Growth Washington Center for Equitable Growth." Washington Center for Equitable Growth. The Washington Center
for Equitable Growth, 12 Mar. 2014. Web. 10 Dec. 2014. <http://equitablegrowth.org/research/understandingthe-minimum-wage-and-income-inequality-and-economic-growth/>.
In addition, its possible that a higher minimum wage could make staying in ones job more attractive
and thus reduce turnover costs. A 2013 working paper by UMass-Amherst economist Arindrajit Dube,
University of North Carolina, Chapel Hill economist William Lester, and UC-Berkeley economist
Michael Reich finds that a higher minimum wage leads to fewer so called hires and separations, or
worker turnover. Other empirical studies suggesting that a higher minimum wageor a living wage
covering basic needscan reduce labor turnover include studies of workers in San Francisco(including
airport and homecare workers) and Los Angeles. Lower turnover costs could potentially allow
businesses to overcome the increased cost of paying a higher wage.
Undoubtedly, then, a living wage would have economic benefits for both those receiving the living wage, as
well as other workers and businesses within the economy. The government has an obligation to ensure the
welfare of its people, and requiring that employers pay a living wage would uphold such an obligation.
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Neg Case
Negative Case
I negate todays resolution, Resolved: Just governments ought to require that employers pay a living wage.
My core value in todays debate is liberty. Merriam-Webster Dictionary defines liberty as, the state or
condition of people who are able to act and speak freely. My criterion is the free market, in which people
and businesses can make autonomous decisions about how to use labor and capital.
Contention One: Forcing employers to pay a living wage violates their autonomy.
I am not attempting to argue that a government has no obligation to its citizens regarding their welfare. In fact,
the argument could be made that the government should ensure a standard of living for their citizens that is
equal to a living wage. However, the notion that they should do so by forcing employers to foot the bill is
incorrect.
Jaana Woiceshyn [teaches business ethics and competitive strategy at the Haskayne School of Business,
University of Calgary, Canada]. Minimum Wage Laws are Immoral. Captialism Magazine. New Romanticist.
2014.04.14 http://capitalismmagazine.com/2014/04/minimum-wage-laws-immoral/
Minimum wage laws are unethical because they, like other employment legislation such as affirmative
action, introduce government force into employment relationships which should be based on voluntary
trade between employers and employees. Businesses should be free to hire whom they choose and
negotiate pay based on the prospective employees value to the business. The employees are free to
reject the offers and to seek work with other companies that value more highly what they have to offer.
Indeed, as The Economist points out:
Houston, WW. "Bad Welfare." The Economist. The Economist Newspaper, 19 July 2013. Web. 08 Aug. 2014.
<http://www.economist.com/blogs/democracyinamerica/2013/07/living-wage-laws>.
If the value of a worker's labour is less to her employer than the cost of a reasonable standard of living,
why should the employer be on the hook for the difference? Subsidising the worker, to bring her up to a
certain baseline minimum, counts as a subsidy to the employer only if we think that was the duty of
business all alongto pay workers not only a wage commensurate with the market value of their labour,
but also sufficient to finance a life of a certain dignity and security. Mr Brennan goes on (using the
example of Bob, a McBurger employee): Isnt it more plausible to think that if theres some
enforceable positive duty to provide Bob with enough stuff to lead a life, that all of us, together share
this burdensome duty, rather than just Bobs employer? Why should Bobs employer, specifically, be
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Neg Case
the one that has to bear the burden and lose all this money to keep him alive (at whatever level you
consider decent)? This just seems like a kind of moral outsourcing to me.
So what is the solution? Worstall, Tom, Senior Fellow of the Adam Smith Institute, writes:
"The Moral Case Against Raising The Minimum Wage." Forbes. Forbes Magazine, 6 Mar. 2014. Web. 03 Dec.
2014. <http://www.forbes.com/sites/timworstall/2014/03/06/the-moral-case-against-raising-the-minimumwage/>.
And thus we come to my position, one that many will find rather odd. Ive no problem at all with,
indeed welcome, the idea that theres a certain minimum that all in our society should share. But this
argument that a rise in the minimum wage would be a good idea because it would reduce the costs of inwork benefits is, to me, entirely the wrong way around. Precisely because we insist upon these minimum
standards it should be us that pay for them through our taxes. Rather than raise the minimum wage and
dump the costs of those standards on other peoples wallets rather than our own.
Effectively, requiring employers to provide a minimum wage would constrain the liberty of those employers to
utilize their capital as they see fit. This would have negative social, moral, and economic consequences. Instead,
if the citizenry, and by extension the government, believe that a certain living standard is crucial, then they
should ensure such a standard without impinging on the liberty of employers.
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Neg Case
Contention Two: Workers should be free to choose what wage is acceptable to gain employment.
Again, the key issue in this debate is not whether citizens deserve a certain standard of living, it is whether
employers are morally obligated (or legally) to provide such a standard. However, putting this requirement on
business may in fact hurt citizens because of economic dynamics. James Dorn explains:
Dorn, James A., Senior Fellow at the Cato Institute. "The Minimum Wage Is Cruelest to Those Who Can't Find
a Job." Cato Institute. The Cato Institute, 22 July 2013. Web. 08 Aug. 2014.
<http://www.cato.org/publications/commentary/minimum-wage-cruelest-those-who-cant-find-job>.
The minimum wage violates the principle of freedom because workers are not permitted to work at less
than the politically determined wage rate, even if they are willing to do so to get or retain a joband
employers are prohibited from hiring them. The minimum wage does nothing to increase the
productivity of low-skilled workers. Indeed, it prevents them from acquiring the skills and experience
they need to move up the income ladder. Discouraged workers may then drop out of the workforce and
end up on welfare or drugs.
Employers want to hire people in accordance with the value those people can add to the business. Sometimes,
people do not have the skills or experience to add enough value to meet the would-be requirements of a living
wage. Instead, it would be better for them to enter at a lower wage and build their value over time. In the
meantime, the government could subsidize that persons life to ensure an adequate standard of living.
Jaana Woiceshyn [teaches business ethics and competitive strategy at the Haskayne School of Business,
University of Calgary, Canada]. Minimum Wage Laws are Immoral. Captialism Magazine. New Romanticist.
2014.04.14 http://capitalismmagazine.com/2014/04/minimum-wage-laws-immoral/
Being able to freely trade value for value is also in the interest of employees and prospective employees.
Being able to negotiate wages without government-mandated minimums will make unskilled and
inexperienced workers more attractive to employers. This would give job opportunities to young
people in particular and to those with fewer skills in general. Young people are often both
inexperienced and unskilled and cannot compete with older, more experienced and skilled workers when
companies are forced to pay both the same minimum, despite the lower productivity of the less
experienced and less skilled young workers. The youth unemployment rates (for 15 to 24-year olds) in
the developed worldtypically at least twice as high as the rates for the adult populationattest to that
reality. (Although many in the youth age group go to school or work part-time, the twice-as-high
unemployment rates cannot be attributed to that alone but reflect the barrier to youth employment
created by the minimum wage laws.)
I will now spend the remainder of my time attacking my opponents case.
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