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Minimum Wage

Brandman University

ECNU-202 Spring I 2020

Professor Justice

February 22, 2020

James Grimes

Starleen Hurt

Shelbie Inboden

Kristi Pies

What is minimum wage?
Lowest legal wage a company can pay its workers
Current federal minimum wage is $7.25 per hour
States and cities can also have minimum wages
21 states are equal to the federal rate, 29 states are higher
Who has the highest? 
Why do we have a minimum wage?
Protect workers from being exploited by employers
It should provide enough income to afford a living wage
Purchase food, clothing and shelter
(Amadeo, 2019)

This Photo by Unknown author is licensed under CC BY-SA.

When did the minimum wage start?
Fair Labor Standards Act of 1938
It was set at $.25 per hour
The most recent amendment was in 2007 with the last increase in 2009
Do other countries have a national minimum wage?
Many counties do have a national minimum wage 
Many are higher than the United States even though the United States has a higher cost of living
United Kingdom = $10.30, Ireland = $11.46
Some countries do not have a national minimum wage
Canada, Mexico, China, India

(Amadeo, 2019)

Many Pros and Cons
Some economist believe it should be up to the states (Stolberg & Smialek, 2019)
Cost of living varies in different locations
A few pros of raising the national minimum wage to $15.00
Economic growth
Increased employment
Reduced government spending
A few cons of raising the national minimum wage to $15.00
Increased poverty

Pros – Economy and Employment
Employees can cover the cost of living
Better morale among employees
Reduces income inequality
Incentive to work
Job growth
Spurs the economy
(ProCon.org, 2019)

Pros – Economy and Employment
Increased economic activity
More jobs
Reduce poverty
Incomes of those above the minimum will go up as well
Increased productivity
Reduces employee turnover
(ProCon.org, 2019)

Pros – Government 
Reduces welfare spending
Reduce snap by 6%
1.7 million off welfare
Income support costs reduce by $7.6 billion
Bring it back up with inflation, to keep up with the cost of living
(ProCon.org, 2019)

Cons – Inflation
Inflation, is the rate a price rises, and essentially how much the dollar is worth at a given moment with regards to purchasing.
If a regular working person makes $10 an hour and the minimum wage drastically changes to $30 it would affect how much everything is priced, whether it’s a car, house, food or gas. In the end, $30 can worth $10 when the prices are raised on everything.
High inflation rates tend to cause uncertainty and confusion leading to less investment. It is argued that countries with persistently higher inflation, tend to have lower rates of investment and economic growth.
If inflation gets out of hand, it can create a vicious cycle, where rising inflation, causes higher inflation expectations, which in turn pushes prices even higher. Hyper-inflation can wipe out the savings of the middle-classes and redistribute wealth and income towards those with debt and assets and property.

Cons – Layoffs
Layoffs are usually the result of economic downturns. A company may choose to reduce the size of its workforce to reduce costs until the situation improves. With a raise in our minimum wage, many companies will have to consider layoffs in order to adjust with the new hourly wage rates 
This will result in many people not having a job and no financial income
These layoffs are permitted legally by a letter of termination. No matter how long you’ve worked for a company, they have the right to lay people off if the company doesn’t have a good flow of financial income.

Cons – Increased Poverty
Increasing our minimum wage will also increase the pricing upon everything to buy. This means that it will be harder for people who are already homeless to buy what they already can’t buy or for those who are barely financially stable. 
For people who are homeless, they’re sadly begging all day for money to buy food. With a huge change in a higher minimum wage it will result in homeless people desperately begging more than usual. This will cause them to barely afford less food than before, from what they already don’t have.
(exaggerated example)
Imagine you were used to buying your groceries and the next day the exact same items are each raised $5 more. Would you take a minute on deciding what to buy and what you should leave behind?
Our poverty is currently already bad and to make it worse by making it harder to buy items, homelessness will increase.


Conclusion Cont.


Amadeo, K. (2019, July 9). Minimum wage with its purpose, pros, cons, and history. the balance. Retrieved from https://www.thebalance.com/us-minimum-wage-what-it-is-history-and-who-must-comply-3306209
Fiorillo, S. (2018, August 29). What is inflation in economics? Definition, causes & examples. TheStreet. Retrieved from https://www.thestreet.com/personal-finance/education/what-is-inflation-14695699
Pettinger, T. (2018, July 17). Pros and cons of inflation. Economics Help. Retrieved from https://www.economicshelp.org/blog/673/inflation/pros-and-cons-of-inflation/
Pros & Cons – PROCON.ORG. (2019, May 9). Should the federal minimum wage be increased? ProCon.org. Retrieved from http://minimum-wage.procon.org/
Stolberg, S. G. & Smialek, J. (2019, July 18). House passes bill to raise minimum wage to $15, a victory for liberals. The New York Times. Retrieved from https://www.nytimes.com/2019/07/18/us/politics/minimum-wage.html?auth=login-email&login=email&searchResultPosition=9 

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OnlineEconomic Issue Analysis and Presentation

Length: PowerPoint or Prezi presentation using no more than 15 slides
Due: Week 6
Value: 200 Points for 20% of the grade
Post: Discussion Board in thread labeled Team Projects

Working in a 3 – 5 person team, research and prepare a report as a 12 – 15 slide presentation that
objectively analyzes a current and controversial economic issue describing differing perspectives of the
economic impact of the issue, drawing conclusions based on the team’s analysis of the research, and
making specific recommendations. Each team must select a different issue; and all team members
participate in the research and report preparation. A well-constructed presentation will cite and reference
five or more sources and adhere to APA guidelines.

Examples of Economic Issues
Brexit: What are the economic advantages and disadvantages to Britain’s vote to leave the European
Executive Pay: What are the economic advantages and disadvantages of current executive pay
practices – do executives deserve the pay they receive?
Globalization: What are the economic advantages and disadvantages of globalization to the USA?
Health Care: What are the economic advantages and disadvantages of nationalized health care?
Labor Unions: What are the economic advantages and disadvantages of labor unions to organizations
and employees?
Minimum Wage: What are the economic advantages and disadvantages of increasing the minimum
wage to $15.00 an hour?
Pharmaceutical Profitability: What are the economic advantages and disadvantages of regulating drug
Privatization of Space: What are the economic advantages and disadvantages of privatizing space
Other: requires instructor approval

Presentation Guidelines
Your presentation must include all team members and address the following:

• Title Page: Identify the issue and team members
• Issue Introduction: Briefly describe the controversial economic issue being researched and its

• Issue Analysis: Research and analyze 5 or scholarly sources to present both sides of the issue;

Summarize differing perspectives discussing the evidence provided to support each; identify any
assumptions or fallacies in the arguments.

• Conclusions: Based on research findings, assess the arguments including points of agreement and

• Recommendations: Based on the team’s analyses, present your specific recommendations on how
to address the economic issue

• References: Five or more required; all listed must be cited in presentation slides

Evaluation Criteria

Paper Elements Exemplary

Proficient Developing Emerging

Issue Identification 20 – 19
Clearly and concisely

18 – 17
Fairly clearly

16 – 15
Somewhat identifies

14 – 0
Limited identification

identifies and
describes the
economic issue. The
importance of the
issue is evident.

identifies and
describes the
economic issue.
The importance of
the issue is fairly

the economic issue.
The importance of the
issue may not be

of the economic issue
and its importance

Issue Analysis 60 – 54
Comprehensively and
objectively analyzes
and discusses
differing perspectives
on the economic
issue. Includes
evidence for both
views, and identifies
all assumptions and/or

53 – 48
Clearly and fairly
objectively analyzes
and discusses
perspectives on the
economic issue.
Includes evidence
for both views, and
identifies most
assumptions and/or

47 – 41
Somewhat discusses
differing perspectives
on the economic
issue although
analysis may not be
objective. Includes
some evidence but
may not identify
assumptions and/or

40 – 0
Biased discussion of
the economic issue.
Evidence is provided
to support only one
perspective. May not
identify assumptions
and/or fallacies.

Conclusions and

30 – 27
Objectively analyzes
research on the issue
to draw valid
conclusions supported
by findings. Fully
assesses points of
agreement and/or

27 – 24
Fairly objectively
analyzes research
on the issue to draw
conclusions usually
supported by
findings. Assesses
most points of
agreement and/or

23 – 20
Somewhat analyzes
research on the issue
and presents
somewhat supported
by the findings. May
not assess points of
agreement and/or

19 – 0
Limited if any
analysis or using
research to draw
conclusions. Does
not assess points of
agreement and/or

Recommendations 30 – 27
Effectively uses
research and analysis
to make specific
recommendations on
the economic issue

27 – 24
Fairly effectively
uses research and
analysis to make
fairly specific
on the economic
issue addressed

23 – 20
Somewhat uses
research and analysis
to make general
recommendations on
the economic issue

19 – 0
Limited if any
made based on team
research and analysis

APA and Sources

20 – 19
Uses 5 or more
scholarly sources to
objectively examine
the issue. Accurately
adhere to APA
standards; reference
page and citations are

18 – 17
Uses 4 scholarly
sources to fairly
objectively examine
the issue, APA
standards are
followed with a few
(2 – 3) minor errors.

16 – 15
Uses 3 sources that
somewhat objectively
examines the issue
although 1 may not
be scholarly. APA
standards are
followed but with
numerous (4 – 10)

14 – 0
Uses less than 3
sources and/or 2 or
more aren’t scholarly.
May not identify
sources with differing
perspectives. Limited
adherence to APA


40 – 36
presentation that is
clear, informative;
visually interesting,
and the required
length. Uses good
grammar and spelling,
and is focused.

35 – 31
presentation that is
fairly clear,
informative and
visually interesting.
May by 5% too long
or short and/or have
minor (1 – 3)
grammar and/or
spelling errors on
one or more slides.

30 – 26
Presentation is
somewhat clear and
informative but may
lack visual interest or
focus. May by 10%
too long or short
and/or include
several (4 – 10)
grammar and/or
spelling errors.

25 – 0
Presentation is
unclear, confusing
and/or difficult to
understand or read.
May by 15% too long
or short and/or
include numerous
(11+) grammar and/or
spelling errors.

  • Online Economic Issue Analysis and Presentation

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