Title: The Minimum Wage Debate

Malik J. Quinn
22786746
Exam Number: 335106
APT P, 675 EBBCREEK DR, CORONA, CA, United States, 92878
mq077131@gmail.com

At the heart of our economic landscape, where justice, opportunity, and societal well-being

converge, the minimum wage debate unfolds as a pivotal crossroads. As the momentum

propelling the "fight for $15" movement surges, I find myself fervently advocating for a

substantial increase in the minimum wage. This isn't merely an economic argument; it's a

resounding call for justice, a stand for the dignity of workers, and a firm belief that a higher

minimum wage is indispensable for the flourishing livelihoods of individuals and the positive

development of our children.

Navigating the labyrinth of the minimum wage conundrum, my unwavering stance leans heavily

toward endorsing a significant increase. I contend that the impact of a higher minimum wage on

employment is not a simplistic economic equation; rather, it's a complex interplay of economic

principles, empirical evidence, and societal considerations. This is not just an economic

proposition; it's a moral imperative, challenging the prevailing notion that a higher minimum

wage inevitably leads to increased unemployment. I passionately assert that it is a pivotal step

toward forging an equitable society, one that uplifts individuals and fosters positive outcomes for

our children.
To truly grasp the nuances of the minimum wage debate, we must embark on an exploration of

the economic implications of a wage hike. While the traditional narrative warns of potential job

losses due to increased operational costs for businesses, I passionately argue that a higher

minimum wage transcends mere economic investment. It signifies a commitment to the financial

security of our workforce and the sustainability of businesses. Critics may assert that higher

wages could burden businesses, but the potential benefits, from bolstering consumer spending to

reducing income inequality, far outweigh these concerns.

In this economic tussle, proponents of a higher minimum wage paint a nuanced picture. They

posit that it not only stimulates economic growth but also serves as a crucial remedy for income

inequality. By empowering workers with fair compensation, a higher minimum wage sets off a

positive ripple effect that fosters economic growth and reduces the need for social safety nets.

Quote from Economists' Argument: "An increase in the minimum wage motivates more people

to enter the labor market because they will earn more money. At the same time, an increase in

the minimum wage increases firms' costs and the quantity of labor demanded decreases (firms

hire fewer workers)."

The "fight for $15" movement emerges as a compelling force reshaping our understanding of the

relationship between minimum wage increases and employment dynamics. While traditional

economic wisdom warns of a negative correlation, my passionate belief aligns with insights from

scholars like Walter John Wessels. Wessels introduces a more nuanced perspective, asserting

that the impact on employment hinges on industry-specific factors, a stance resonating with the

essence of justice. Industry-specific nuances, often overlooked, play a pivotal role in determining

the employment impact of minimum wage increases.

This movement transcends a simple demand for higher pay; it's a collective outcry for social

justice. Wessels' research on the restaurant industry, a sector notorious for low-wage work,

underscores the urgency of recognizing industry-specific intricacies. By advocating for servers to

receive fair wages, we empower workers and challenge the notion that businesses should thrive

on the exploitation of low-wage labor. The observed 'reverse C' monopsony pattern in Wessels'

study signifies a transitional phase toward a fair and just labor market.

Quote from Wessels: "Allowing restaurants to pay servers lower wages...gives them monopsony

power over wages. Empirically, the author found the full 'reverse C' monopsony pattern of

employment for restaurants, with employment first going up and then down as the minimum

wage is increased."

Contrary to the conventional narrative, empirical evidence challenges the assumption that a

higher minimum wage necessarily leads to increased unemployment. The work of Heather D.

Hill and Jennifer Romich injects a dose of reality by establishing a profound connection between

higher family income during childhood and positive outcomes in child development. This isn't

just about employment statistics; it's about fostering a society where a higher minimum wage

becomes a catalyst for positive societal outcomes. Critics may argue that correlation does not

imply causation, but the robust evidence presented underscores the societal benefits of a higher

minimum wage.

Empirical research goes beyond the narrow confines of immediate employment effects. Hill and

Romich's study ventures into the realm of long-term implications, revealing a profound

connection between higher family income during childhood and positive outcomes in school

achievement and test scores. The study challenges the notion that minimum wage adjustments
solely impact the labor market, introducing a broader societal dimension. It suggests that the

benefits of a higher minimum wage extend beyond economic considerations, shaping the

trajectory of our society.

Quote from Hill and Romich: "Evidence of a causal relationship is strongest for school

achievement and test scores, based on natural experiments that relied on changes to income

support policies in the United States and Canada."

Beyond economic intricacies, the societal implications of a higher minimum wage command our

attention. Advocates, including Mina Dixon Davis, passionately emphasize the potential positive

impact on family income and child development. The proposed Raise the Wage Act of 2021

aligns with this perspective, underscoring the pivotal role of government intervention in

addressing income disparities and fostering a more equitable society. This isn't about overreach;

it's about a responsible government taking a stand for social equity. Opponents may argue

against government intervention, but the moral imperative to address income disparities and

provide workers with a dignified livelihood overrides such objections.

The societal implications of a higher minimum wage stretch far beyond economic

considerations. Davis and supporters of the Raise the Wage Act of 2021 passionately advocate

for government intervention as a necessary step to correct systemic inequalities. By gradually

raising the federal minimum wage to $15 an hour by 2025, the proposed legislation aligns with a

broader perspective that views government intervention as a mechanism for promoting social

equity and fostering a more just society. Opponents may argue against government intervention,

citing concerns about market distortions, but the moral imperative to address income disparities

and provide workers with a dignified livelihood outweighs such objections.

Quote from Dixon Davis: "If Congress wants to get serious about improving outcomes for kids,

it should enact the Raise the Wage Act of 2021, which calls for gradually raising the federal

minimum wage to $15 an hour by 2025."

Children stand at the intersection of policy decisions, particularly in the context of the minimum

wage debate. The early 21st century witnessed a surge in new minimum wage laws and increased

rates across the United States and globally. While the federal minimum wage in the United States

has remained stagnant at $7.25 an hour, a groundswell of change has occurred at the state and

local levels. Since 2014, 18 states have adjusted their minimum wages, with more than two

dozen localities, including major cities like Chicago and Los Angeles, setting minimum wages

well above federal and state levels. Notably, many of these local laws aim for a $15 per hour

minimum wage, recognizing the economic challenges faced by workers.

This wave of change is not confined to the United States alone. Countries such as Britain, China,

Germany, Ireland, and Kenya have undertaken substantial revisions to their national minimum

wage laws between 1999 and 2015. The global conversation on fair compensation has gained

momentum, acknowledging that a wage floor is essential for the well-being of workers. As we

navigate the intricacies of these changes, it becomes imperative to examine the direct and

indirect consequences on children, who are not merely bystanders but active participants in the

narrative shaped by minimum wage policies.

The impact on adolescent workers directly and younger children indirectly through changes in

family economic circumstances and parental stress is profound. The effects of increased

minimum wages reverberate through families, particularly those headed by women, immigrants,

and racial minorities who are overrepresented in low-paying jobs. The economic conditions and
relationships between caregivers and children carry implications for health, academic

achievement, and long-term economic success. Thus, the indirect effects on children's well-being

and their social and economic mobility merit careful consideration in our discourse on minimum

wage policies.

Quote from Heather D. Hill and Jennifer Romich: "Children are both direct and indirect targets

of minimum wage policies. Creating or raising a minimum wage can affect the employment and

financial well-being of adolescent workers directly. The policy may also affect younger children

indirectly through changes in families’ economic circumstances and parents’ stress, or changes

to the quality or cost of nonparental child care. The effects of increased minimum wages are

usually felt by children in female-headed, immigrant, and racial-minority families because these

families are overrepresented in low-paying jobs."

As I navigate the labyrinth of the minimum wage conundrum, my fervor for a substantial

increase is unwavering. This journey isn't just about numbers; it's a passionate commitment to

justice, dignity, and the well-being of our society. The ongoing dialogue on minimum wage

policies reflects the tension between economic theory, empirical evidence, and societal

aspirations. While economic principles offer a foundational understanding, the real-world

complexities demand a more nuanced approach.

This isn't just an economic debate; it's a societal discourse on justice, fairness, and our collective

responsibility to uplift the vulnerable. As society grapples with these complexities, it is essential

to approach the minimum wage conundrum with a willingness to adapt and refine our

understanding. The path forward requires a synthesis of economic insights, empirical

observations, and societal values. While the debate may persist, the goal should be a
comprehensive framework that not only addresses immediate economic concerns but also

contributes to the well-being and advancement of individuals and communities.

In this passionate pursuit, the minimum wage becomes more than a numerical figure; it becomes

a reflection of our collective commitment to a fair, just, and prosperous society. Advocating for a

higher minimum wage isn't just about economics; it's about shaping a society where individuals

can live with dignity, free from the shackles of poverty. It's a call to action for a society where

justice prevails, and the well-being of every citizen is a non-negotiable priority.

References

Wessels, Walter John. "Minimum wages and tipped servers." Economic Inquiry, vol. 35, no. 2,
Apr. 1997, p. 334. Gale Academic OneFile, link.gale.com/apps/doc/A56327386/AONE?
u=anon~c83f9304&sid=bookmark-AONE&xid=c955c5d7

Yoe, Jonathan. "A $15 minimum wage changes more than just take-home pay." Monthly Labor
Review, Sept. 2021, pp. 1+. Gale Academic OneFile,
link.gale.com/apps/doc/A680920376/AONE?u=anon~c83f9304&sid=bookmark-
AONE&xid=f5be781a

Heather D. Hill and Jennifer Romich "How Will Higher Minimum Wages Affect Family Life
and Children’s Well-Being?" https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5966045/

Mina Dixon Davis "What Would Raising the Minimum Wage Mean for Children?"
https://www.childrensdefense.org/blog/what-would-raising-the-minimum-wage-mean-for-
children/