Instigator / Con
Phaneron's avatar
6
Phaneron
1500
rating
8
debates
37.5%
won
Topic
#4131

On balance, the federal minimum wage should be raised to $15 per hour by 2025

Status
Finished

The debate is finished. The distribution of the voting points and the winner are presented below.

Winner & statistics
Better arguments
0
6
Better sources
4
4
Better legibility
2
2
Better conduct
0
2

After 2 votes and with 8 points ahead, the winner is...

AustinL0926
Tags
Economics
Parameters
Publication date
Last updated date
Type
Standard
Number of rounds
5
Time for argument
One week
Max argument characters
10,000
Voting period
One month
Point system
Multiple criterions
Voting system
Open
Contender / Pro
AustinL0926's avatar
14
AustinL0926
1636
rating
33
debates
93.94%
won
Description

No information

Round 1
Phaneron's avatar
Phaneron
Con
#1
The unintended consequences of the minimum wage

Minimum wage laws are a barrier to professional knowledge and skillsets for members of the population who are uneducated and lack experience. These individuals are often the young, the poor, minorities, or all the above. Minimum wage laws prevent these individuals from entering the workforce and beginning their journey up the jobs ladder by pricing them out of the market for their potential employers. Individuals take low entry jobs mainly to gain experience not primarily for money. By having a minimum wage, companies are forced to decrease the amount of lower class employees that they will hire in the future. Both resulting in a negative effect on the economy and regular employment. 
When one argues for the increase of the minimum wage to a “living” wage of $15 per hour, one can easily see the benefit to the employee that may have had their wage rate doubled. Yet, more difficult to see is the employee who lost their job. Employers do not have an endless budget, and if the wage rate doubles, the staff will be cut in half. In addition, even the threat of increasing the minimum wage has increased the rates at which companies automate any job which they can. We have witnessed automation right here in Kinston with our fast food locations. Those new kiosks at McDonald’s, Taco Bell, and elsewhere have replaced human cashiers. Jobs have been lost. 

The criminal state

I believe in free will and the freedom to choose, to borrow a phrase from Milton Friedman. I rarely support government coercion. Minimum wage laws remove choice from both the employer and the employee. Given the current economic crisis, I imagine many unemployed individuals would accept a job at $5 per hour, yet the government creates crime from an otherwise mutually consensual economic transaction. Increasing the minimum wage will only increase inflation, which will impact everyone. It will inevitable result in stagflation. 

Definition:
Stagflation: persistent high inflation combined with high unemployment and stagnant demand in a country's economy.
Milton Friedman: Milton Friedman was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the complexity of stabilization policy.

Sources:

Sowell, Thomas, 1930-, Basic Economics: A Citizen's Guide to the Economy. New York, Basic Books, 2004

AustinL0926's avatar
AustinL0926
Pro
#2
I. Framework 

1. Scope 

This debate concerns a theoretical plan where the US minimum wage would be gradually raised, culminating in an eventual new federal minimum wage of $15 by 2025. Any societal benefits, as well as societal harms, may be considered when evaluating whether this plan should be implemented. 

2. Burden of Proof 

Because this debate is “On balance,” the burden of proof is shared. CON must show that the federal minimum wage should not be raised to $15, while PRO must argue the federal minimum wage should be raised to $15. 

3. Winning conditions 

PRO wins if it is proven that raising the federal minimum wage to $15 would bring net benefit to society (and therefore it should be implemented.) CON wins if he proves the converse. 


II. Constructives 
 
1. Social Benefits 

a. Decreased Poverty 

Raising the minimum wage to $15 would raise wages for nearly 32 million workers, about 1/5 of the US workforce. These workers would gain nearly $3,300 in wages each year as a result, enough to pay for food, housing, or other essentials. [1] 

This increase in wages is necessary because although inflation and cost-of-living has increased, wages haven’t increased at nearly the same rate. In fact, if wages had increased at the same rate that productivity has improved, then the hourly wage would be over $21. [2] 

35% of families with full-time employment don’t earn enough for essential needs. [3] If the minimum wage would raised, these families would be significantly benefitted. Clearly, bringing millions of people out of poverty is certainly a good justification for an economic policy. 

b. Quality of Life 

Also, raising the minimum wage wouldn’t just have economic benefits – it would have direct benefits to people’s quality of life as well. 
 
It has been widely documented that poverty is associated with both psychological and physical problems, as a result of stress, an unbalanced diet, and lack of affordable healthcare. Raising minimum wage would raise people out of poverty, allowing them a better quality of life.  

According to a study conducted by nonprofit organization Human Impact Partners, raising the minimum wage to $13 in California alone would prevent 389 premature deaths each year. [5] 

To further support this, the State Health Commissioner for Minnesota, Edward Ehlinger, said that raising Minnesota’s minimum wage was “the biggest public health achievement in the four years I’ve been health commissioner.” [6] 

c. Long-term Effects 

In addition, raising the minimum wage would benefit society in the long-term. According to the same study cited above, raising the minimum wage would significantly decrease truancy and dropout rates among high school students living in poverty. [5] 

Finally, raising the minimum wage to $15 by 2025 would set a valuable precedent for the future – that it is possible, and necessary, to help those most in need. 

2. Stronger Economy 

a. Employee Productivity 

The topic of whether increasing the minimum wage leads to unemployment is contentious, and several economists have published conflicting studies on this topic. I will address this later in my Rebuttals section. 

However, what is not in question is that increasing the minimum wage would lead to increased productivity. Workers who feel secure about their economic future tend to stay longer, be more productive, and turn up to work more often. [7] 

This would benefit both businesses and workers, as well as increase the strength of the US economy overall – which leads me to my next point. 

b. Economic Activity 

According to the Economic Policy Institute, raising the federal minimum wage to just $10.10 would increase annual GDP by over $22 billion, and create 85,000 new jobs as a result of a growing job market. [8] Although this study covers a less dramatic wage increase, the fundamental principle of an increase in wages
being spread throughout the economy still applies, particularly considering that the same organization now supports a raise to $15. [1] 

3. Effective Policy 

a. Decreased Welfare Costs 

Many minimum wage workers live below the poverty line, forcing them to rely on federal welfare. If the US government implemented an increase in the federal minimum wage, they would save billions of dollars on welfare. For example, a total of $46 billion would be saved just on food stamps in the next 10 years if the minimum wage was increased by a modest $2.85. [9] 

In addition, economists argue that it would only be justified for businesses to pay the cost of the increased minimum wage. Aaron Pacitti, an Associate Professor of Economics, said, “Since firms are allowed to pay poverty-level wages to 3.6 million people — 5 percent of the workforce — these workers must rely on federal income support programs. This means that taxpayers have been subsidizing businesses, whose profits have risen to record levels over the past 30 years.” 

b. Decreased Crime Rates  

This last contention focuses on the decreased crime rates as a result of raising the minimum wage. Although this might seem irrelevant, or even counterintuitive, it makes sense when you consider that raising the minimum wage would decrease poverty and increase education rates, two factors directly linked to a lower crime rate. 

A cost-benefit analysis study about the minimum wage concluded that “higher wages for low-income individuals reduce crime by providing viable and sustainable employment… raising the minimum wage to $12 by 2020 would result in a 3 to 5 percent crime decrease (250,000 to 540,000 crimes) and a societal benefit of $8 to $17 billion dollars.” [10] 


III. Rebuttals 

“Minimum wage laws are a barrier to professional knowledge and skillsets for members of the population who are uneducated and lack experience... (etc)."

This is an unsourced claim. How exactly are they a barrier to knowledge and skillsets? PRO listed examples of three groups. It is true that young people often work mainly for experience, but they should be getting an education instead – therefore, this only proves my point.  However, the poor, and minorities, often rely on minimum wage jobs solely to support themselves and their families. For them, they have little hope of climbing up the ladder, so raising the minimum wage would also benefit them. 

In addition, raising the minimum wage would provide financial security, which is important in order to get a better job – therefore, CON’s argument defeats itself. 


“By having a minimum wage, companies are forced to decrease the amount of lower class employees that they will hire in the future. Both resulting in a negative effect on the economy and regular employment.” 
PRO again fails to cite any sources, and takes a one-sided view. Yes, raising the minimum wage might cause some job losses in the short term. However, it would result in a net gain of jobs, as a result of a better economy. When people get paid more, they spend more, which helps stimulate better economic growth, as was proven earlier in “Economic Activity.” 


“Yet, more difficult to see is the employee who lost their job. Employers do not have an endless budget, and if the wage rate doubles, the staff will be cut in half.” 
[CITATION NEEDED] 

Seriously, the last statement is a very bold claim to be making – perhaps because it’s false. For most businesses, labor costs account for only around 20-30% of operating expenses, and minimum wage workers account for a mere fraction of that. [11] 

According to a study by Purdue University researchers, businesses could offset an increase in the minimum wage with a mere 4% price increase – taking into account the minimum extra cost of increasing wages for the lowest-paid workers, as well as the greater productivity that results. [12] 


“In addition, even the threat of increasing the minimum wage has increased the rates at which companies automate any job which they can. We have witnessed automation right here in Kinston with our fast food locations. Those new kiosks at McDonald’s, Taco Bell, and elsewhere have replaced human cashiers. Jobs have been lost.” 
Kiosks are cheaper than employees, regardless of their wage, since they don’t need to be paid. What makes you think that these same companies wouldn’t have implemented automation anyway? 


“I believe in free will and the freedom to choose, to borrow a phrase from Milton Friedman. I rarely support government coercion... (etc)."
This is more or less a defense of an absolutely unregulated economy. If there was no federal minimum wage, then even legal contracts like my opponent mentioned would be exploitative – clearly, there is a huge power imbalance between the employer and employee. If the employee needs to accept a job paying below poverty rates in order to feed his family, is it truly mutually consensual? A regulated economy, with protection for workers, is necessary for the majority of society to benefit, rather than a small and powerful minority. 


IV. Conclusion 

In this round, I have shown how raising minimum wage would: 
  • Decrease poverty 
  • Increase quality of life 
  • Have positive long-term societal effects 
  • Increase employee productivity 
  • Increase economic activity 
  • Decrease governmental welfare costs 
  • Decrease crime rates 
I have also refuted my opponent’s claims as being unsourced, self-defeating, or otherwise irrelevant and showing a lack of societal harm. Vote PRO! 


V. Sources

SOURCES in COMMENTS!



Round 2
Phaneron's avatar
Phaneron
Con
#3
Forfeited
AustinL0926's avatar
AustinL0926
Pro
#4
Extenddddddddddddddddddddddddddddddddddd
Round 3
Phaneron's avatar
Phaneron
Con
#5
Forfeited
AustinL0926's avatar
AustinL0926
Pro
#6
e

x           t

               e            n

                               d         .
Round 4
Phaneron's avatar
Phaneron
Con
#7
Forfeited
AustinL0926's avatar
AustinL0926
Pro
#8
ex4tnrwe fnd
Round 5
Phaneron's avatar
Phaneron
Con
#9
Forfeited
AustinL0926's avatar
AustinL0926
Pro
#10
A duck walked up to a lemonade stand And he said to the man, running the stand "Hey! (Bum bum bum) Got any grapes?" The man said "No we just sell lemonade. But it’s cold And it's fresh And it’s all home-made. Can I get you Glass?" The duck said, “I’ll pass”.
Then he waddled away. (Waddle waddle) 'Til the very next day. (Bum bum bum bum ba-bada-dum)
When the duck walked up to the lemonade stand And he said to the man running the stand, "Hey! (Bum bum bum) Got any grapes? The man said, "No, like I said yesterday We just sell lemonade OK? Why not give it a try?" The duck said, "Goodbye."good day
Then he waddled away. (Waddle waddle) Then he waddled away. (Waddle waddle) Then he waddled away (Waddle waddle) 'Til the very next day. (Bum bum bum bum ba-ba-dum)
When the duck walked up to the lemonade stand And he said to the man running the stand, "Hey! (bum bum bum) Got any grapes? The man said, Look, this is getting old. I mean, lemonade’s all we’ve ever sold. Why not give it a go?" The duck said, “How 'bout, no.”
Then he waddled away (Waddle waddle) Then he waddled away. (Waddle waddle waddle) Then he waddled away (Waddle waddle) 'Til the very next day. (Bum bum bum bum ba-ba-dum)
When the duck walked up to the lemonade stand And he said to the man running the stand, "Hey! (Bum bum bum) Got any grapes?" The man said, "THAT’S IT! If you don’t stay away, duck, I’ll glue you to a tree and leave you there all day, stuck So don’t get to close!" The duck said, "Adios."
Then he waddled away. (Waddle waddle) Then he waddled away. (Waddle waddle waddle) Then he waddled away (Waddle waddle) 'Til the very next day. (Bum bum bum bum ba-ba-dum)
When the duck walked up to the lemonade stand And he said to the man that was running the stand, "Hey! (Bum bum bum) got any glue?" "What" "Got any glue?" "No, why would I– oh!" And one more question for you; "Got any grapes?" (Bum bum bum, bum bum bum)
And the man just stopped. Then he started to smile. He started to laugh. He laughed for a while. He said, “Come on duck, let’s walk to the store. I’ll buy you some grapes So you won’t have to ask anymore.” So they walked to the store And the man bought some grapes. He gave one to the duck and the duck said, “Hmmm..No thanks. But you know what sounds good? It would make my day. Do you think this store Do you think this store Do you think this store has any lemonade?”
Then he waddled away. (Waddle waddle) Then he waddled away. (Waddle waddle waddle) Then he waddled away (Waddle waddle)