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YES: The US should raise thefederal minimum wage to $15/hr.1.2Should the federalminimum wage be$15?You decide!1.1DISCUSSION QUESTIONS:1. How much money would you say is necessary to live on?2. What level of government should deal with wages? (federal,state, city) - and why?3. What do you think would happen to employment if theminimum wage is increased?The federal minimumwage growth has notkept up with inflation.2.1The federal minimumwage has not beenincreased since 2009.3.1As of August 2019,the real value of thefederal minimumwage has dropped31% since its peak in1968.3.2It is very difficult tolive off the currentminimum wage.2.2The current federalminimum wage of$7.25/hr puts a familyof two, withoutanother source ofincome, below thefederal poverty line.3.3A $15/hr wage is aliving wage2.3A $15/hr minimumwage would helpaddress economicinequality in the US2.4A $15/hr minimumwage would increasethe wages of tens ofmillions of low-wageAmerican workers.3.4The Economic PolicyInstitute predicts thata $15/hr minimumwage would increasethe wages of 33.5million workers by2025.4.1The CongressionalBudget Officepredicts that a $15/hrminimum wagewould increase thewages of 27.3 millionworkers by 2025.4.2Raising the minimumwage to $15/hr woulddecrease poverty inthe US3.5The CongressionalBudget Officepredicts that raisingthe minimum wage to$15 by 2025 will pull1.3 million Americansout of poverty.4.3African-American and Hispaniccommunities woulddisproportionately benefitfrom a federal $15/hrminimum wage.3.6African-Americanworkers areoverrepresentedamong low-wageworkers.4.4African-Americanworkers are also lesslikely to live in statesthat have passed aminimum wage thatis higher than thecurrent federalminimum.4.5A study by the IZAinstitute of LaborEconomics found thatevery 10.0 percentincrease in theinflation-adjustedminimum wagereduces black andHispanic povertyrates by about 10.9%.4.6Female workerswoulddisproportionatelybenefit from a $15/hrminimum wage.3.7Nearly two-thirds ofminimum wageworkers in the US arewomen4.7According to the EPI,19.5 million womenwould see theirwages increase by2025.4.8In states with realminimum wage increases,the 10th percentile wagegrew faster for womenthan for men (10.7% vs.8.6%)4.9NO: The US should not raisethe federal minimum wage1.3Raising the minimumwage would increasepoverty2.5A study from theFederal Reserve Bankof Cleveland foundthat for low-incomeworkers, “their hoursand employmentdecline...minimumwages increase theproportion of familiesthat are poor or near-poor.”3.8Higher minimumwage results inhigher prices forconsumers3.9The higher wages are,the higher costs ofproduction are4.10The higher costs ofproduction are, thehigher prices are4.11When prices go up,consumer demandgoes down, resultingin fewer goods andservices produced,resulting in lessemployment3.10A minimum wageincrease would hurtbusinesses and forcecompanies to close2.660% of small-businessowners say thatraising the minimumwage will “hurt mostsmall-businessowners,” according toa 2013 Gallup poll.3.11Jamie Richardson,MBA, Vice Presidentof fast food chainWhite Castle, saidthat the companywould be forced toclose almost half itsstores and let gothousands of workersif the federalminimum wage wereraised to $15.3.12Forbes reported thatan increase in theminimum wage hasled to the closure ofseveral Wal-Martstores and thecancellation ofpromised stores yetto open.3.13Decisions aboutminimum wageshould be made bystate and localgovernments.2.7Having differentwages in differentcities allows economicresearchers to learnby comparing theeffects of differentpolicies3.14Different placesshould have differentminimum wages3.15Puerto Rico's teenunemployment is anexample of when theminimum wage is toohigh for local laborproductivity4.12The cost of living insome places is farhigher than in others4.13Raising the minimumwage would forcebusinesses to lay offemployees and increaseunemployment levels2.8The CongressionalBudget Officeprojected that aminimum wageincrease from $7.25to $10.10 wouldresult in a loss of500,000 jobs.3.16In a survey of 1,213businesses andhuman resourcesprofessionals, 38% ofemployers whocurrently payminimum wage saidthey would lay offsome employees ifthe minimum wagewas raised to $10.10and 54% said theywould decrease hiringlevels.3.17San Francisco’s Officeof Economic Analysissaid that an increaseto $15 would reducethe city’s employmentby about “15,270private sector jobs.”3.18BACKGROUND:Increasing the federal minimum wage to $15 an hour hasbeen on President Biden's agenda since Day 1. For the pastten years, the federal minimum wage has remained thesame while the cost of living continues to rise with inflation.While some economists say a $15 minimum would lead tohigher unemployment, others contend that it would have noeffect on jobs and may even create them.1.4

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