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 $17 billion dollars.” [10]
III. Rebuttals
I think there should be a conduct penalty for the longest bad joke I have ever read.
Quack Quack.
*proceeds to inflate US$ to the point where even if the nominal wages are raised up to $25 the real income per capita changes by basically nothing*
R1 SOURCES:
1: https://www.nelp.org/publication/u-s-needs-15-minimum-wage/#_edn52
2: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2705499
3: https://www.diversitydatakids.org/research-library/journal-article/families-job-characteristics-and-economic-self-sufficiency
4: https://www.cbo.gov/publication/55681
5: https://humanimpact.org/wp-content/uploads/2017/09/SB935_HealthAnalysis-1.pdf
6: https://www.thenationshealth.org/content/45/2/1.1.abstract
7: https://www.socialeurope.eu/minimum-wage-us
8: https://www.epi.org/publication/raising-federal-minimum-wage-to-1010/
9: https://www.americanprogress.org/article/the-effects-of-minimum-wages-on-snap-enrollments-and-expenditures/
10: https://dl.icdst.org/pdfs/files/a0fd722b5a7675bcdb74f9d46a6bda89.pdf
11: https://adia.works/blog/labor-cost-percentage-by-industry/
12: https://www.purdue.edu/research/features/stories/study-raising-wages-to-15-an-hour-for-limited-service-restaurant-employees-would-raise-prices-4-3-percent/