MidtermDebate:RaisetheFederalMinimumWageto$10.

10

Topic:Poverty
1. Byincreasingtheminimumwage,wouldntthisdecreasepovertyinthelongrunbecausemoreis
beingputbackintotheeconomy?
2. Doyoureallythinkthatpeopleshouldbeworkingfulltimeandlivingbelowthepovertyline?
Argument1:Reducepoverty
USDepartmentofLaborandUSCensusBureau:Fulltimeat$7.25perhourearns$15,080inayear
20%higherthanthe2015federalpovertylevelof$12,331foraonepersonhouseholdunder65
yearsofage
8%belowthe2015federalpovertylevelof$16,337forasingleparentfamilywithachildunder
18yearsofage
SocialEurope:2013UniversityofMassachusettsatAmherstincreasingtheminimumwageto$10.10
is"projectedtoreducethenumberofnonelderlylivinginpovertybyaround4.6million,orby6 .8million
whenlongertermeffectsareaccountedfor."
NextCity:Raisingtheminimumwageto$10.10wouldlift9 00,000familiesoutofpoverty.Itwould,the
CBOfound,increasetheincomeof16.5millionAmericans
RestaurantOpportunitiesCentersUnited:raisingtheminimumwageto$10.10perhourwouldpullmore
thanh alfofthenationsworkingpooroutofpoverty
HuffingtonPost:4 6Millionpeoplelivingbelowpovertylinein2016
Argument2:Peoplecantaffordhousing
WashingtonPost:2015NationalLowIncomeHousingCoalition
workermustearnatleast$15.50anhour(overtwicethefederalminimumwage)tobeableto
affordtorenta"modest"onebedroomapartment
$19.35foratwobedroomunit(morethan2.5timestheminimumwage).
"Innostatecananindividualworkingatypical40hourworkweekatthefederalminimumwage
affordaoneortwobedroomapartmentforhisorherfamily."
Californiain2015,minimumwage$9 perhour,wouldneedtowork92hoursaweektoaffordto
rentaonebedroomapartment.
MassachusettsInstituteofTechnology:InRawlinsCounty,Kansas,whererentalcostsaresomeofthe
mostaffordableinthecountry,alivingwageincludinghousingcostsforonepersonwithnodependentsis
estimatedtobe$ 9.35,25.3%higherthanthefederalminimumwage
Argument3:Peoplecantaffordeverydayessentials
OxfamAmerica:2013poll66%ofUSworkersearninglessthan$10anhourreportthatthey"justmeet"
or"don'tevenhaveenoughtomeet"theirbasiclivingexpenses50%saythattheyarefrequently
worriedaboutaffordingbasicnecessitiessuchasfood
AllianceforaJustSociety:2015report"thefederalminimumwageof$7.25perhourrepresentsless
thanhalfofalivingwageforasingleadult"anda workersupportingo nlyhimselfwouldhavetowork93
hoursaweekatthefederalminimumwageinordertomakeendsmeet"orskipnecessitieslikemealsor
medicine."
Argument4:Healthierpopulation,Preventprematuredeaths
HumanImpactPartners:studythoseearningahigherminimumwagewouldhaveenoughtoeat,be
morelikelytoexercise,lesslikelytosmoke,sufferfromfeweremotionalandpsychologicalproblems,and
evenp revent389prematuredeathsayear
Bay Area Regional Health Inequities Initiative: 2014study1)minimumwageworkersaremorelikelyto
reportpoorhealth,sufferfromchronicdiseases,andbeunabletoaffordbalancedmeals.2)"policiesthat
reducepovertyandraisethewagesoflowincomepeoplecanbeexpectedtosignificantlyimproveoverall
healthandreducehealthinequities."


RaisetheFederalMinimumWageto$10.10b
yChloeVeth,CalebPowell,andSamDocker

TheNationsHealth:EdwardEhlinger,MD,StateHealthCommissionerforMinnesotaraisingthe
Minnesotaminimumwagefrom$6.15anhourto$9.50bymid2016wasprobably"thebiggestpublic
healthachievement...inthefouryearsI'vebeenhealthcommissioner...Ifyoulookatthec onditionsthat
impacthealth,incomeisrightatthetopofthelist.
Topic:Unemployment
1. Howdoyouthinktheminimumwageraisewoulddecreasejobs?
2. Wouldnttheminimumwageraiseputmoreintotheconsumerspockets,whichinturnwouldbefeed
backintothebusinesses,whichwouldcreatemorejobs?
Argument:Increaseeconomicactivityandspurjobgrowth
EconomicPolicyInstitute:$7.25anhourto$10.10wouldinject$22.1billionnetintotheeconomyand
createabout85,000newjobsoverathreeyearphaseinperiod
ChicagoFedLetter:EconomistsfromtheFederalReserveBankofChicagopredictedthata$1.75risein
thefederalminimumwagewouldincreasehouseholdspendingby$48billionthefollowingyear,thus
boostingGDPandleadingtojobgrowth
BritishJournalofIndustrialRelations:64minimumwagestudiesauthorsfound"littleornoevidenceof
anegativeassociationbetweenminimumwagesandemployment."
ThinkProgress:Raisingtheminimumwagemayincreasedemandforgoodsandservicesandbolster
consumerspending,offsettingtheincreasetoemployercosts

Topic:GovernmentSpending
Questions: 1.D oyouwantthefederaldebttoraise?Sothenwhynotraisetheminimumwage?
2.W hydoyouthinkthatraisingtheminimumwagewillhurtgovernmentspending?
Argument1:Reducegovernmentwelfarespending
lowincomeworkersearnedmoremoney,theirdependenceon,andeligibilityfor,governmentbenefits
woulddecrease
CenterforAmericanProgress:2014raisingfederalminimumwageby6%to$10.10wouldreduce
spendingontheSupplementalNutritionAssistanceProgram(SNAP,formerlyknownasfoodstamps)by
6%or$4.6billion
EconomicPolicyInstitute:increaseto$10.10morethan1.7millionAmericanswouldnolongerbe
dependentongovernmentassistanceprogramsincreasewouldshave$ 7.6billionoffannual
governmentspendingonincomesupportprograms

Argument2:Reducethefederaldeficit
HuffingtonPost:AaronPacitti,PhDraisingtheminimumwagewouldhelpr educethefederalbudget
deficit"byloweringspendingonpublicassistanceprogramsandincreasingtaxrevenue.Sincefirmsare
allowedtopaypovertylevelwagesto3.6millionpeople5percentoftheworkforcetheseworkers
mustrelyonFederalincomesupportprograms.Thismeansthattaxpayershavebeensubsidizing
businesses,whoseprofitshaverisentorecordlevelsoverthepast30years."
ForeignPolicy:JamesK.Galbraith,PhD"becausepayrollandincometaxrevenueswouldrise[asa
resultofanincreaseintheminimumwage],thefederaldeficitwouldcomedown."
USGovernmentSpending:
Deficit:Theamountbywhichthegovernmentstotalbudgetoutlaysexceedsitstotalreceiptsfor
afiscalyear.USSenateBudgetCommittee
2016thefederaldeficitwas$587billion
2017federalgovernmentestimatedthatthedeficitwillbe$504billion


RaisetheFederalMinimumWageto$10.10b
yChloeVeth,CalebPowell,andSamDocker

Topic:Inflation
Questions: 1.D ontyouthinkthatthewageshouldbegoingupwithinflation?
2.Howareworkersgoingtoadapttotheeconomyifwageisnotincreased?
Argument:Theminimumwagehasnotkeptupwithinflation
(Rebuttal:RaisingWagewouldincreasethepriceofconsumergoods)
USDepartmentofLabor:federalminimumwageisnotindexedforinflation,itspurchasingpower(the
numberofgoodsthatcanbeboughtwithaunitofcurrency)hasd roppedconsiderablysinceitspeakin
1968
Saving.org:minimumwagein1968was$1.60,whichise quivalentto$11.16inJan.2016dollarsand
whichis53.9%higherthantoday's$7.25federalminimumwage
EconomicPolicyInstitute:LianaFox,PhD"inflationindexingguaranteeslowwageworkersawagethat
keepspacewiththerisingcostsofgoodsandservices."
Inequality.org:raisngminimumwageandindexingittoinflationwouldensurethatlowwageworkers
couldadoptastandardoflivingcommensuratewiththecurrenteconomy

Topic:Inequality
Questions: 1.A
reyouproudthatourcountrytreatstheirworkerssounequally?Shouldntwefixthis.
2.A
reyoutryingtoincreasethedividebysayingthatminimumwageshouldnotberaised?
Argument1:Reduceincomeinequality
Organisation for Economic Cooperation and Development: Amongthe3 4OECDmembercountries,the
UnitedStateshasoneofthehighestlevelsofincomeinequality,withonlyChile,Mexico,andTurkey
havinghigherlevelsofincomeinequality
BernieSanders.com:2012richest1 %oftheUSpopulationearned22.83%ofthenation'stotalpretax
incomeresultinginthewidestgapbetweentherichandthepoorsincethe1920s
MITEconomics:2015studydecreaseintheinflationadjustedvalueoftheminimumwagesincethe
1980shasbeenacontributortoAmerica'shighlevelsofinequality
CNN:IsabelSawhill,PhD2014raisingminimumwagewouldr educeincomeinequality.JasonFurman
2014theweakeningvalueoftheminimumwage"isoneoftheimportant[reasons]...forinequalityat
thebottom."

Argument2:Reduceraceandgenderinequality
USDepartmentofLabor:Despiterepresenting47%ofUSworkers,womenmakeup6 3%ofminimum
wageworkers
USBureauofLaborStatistics:
AfricanAmericansrepresent12%oftheUSworkforce,andmakeup17 .7%ofminimumwage
earners
16%ofthelaborforceisHispanic,andtheyrepresent21.5%ofworkersmakingtheminimum
wage

Topic:RippleEffect
Questions: 1.Thisisgoingtobenefitatonofpeople,whyareyouagainstthat?
Argument:Increasingtheminimumwagewouldhavearippleeffect,raisingtheincomesofpeoplewho
makeslightlyabovetheminimumwage

RaisetheFederalMinimumWageto$10.10b
yChloeVeth,CalebPowell,andSamDocker

TheHamiltonProject:BrookingsInstitutionincreasingminimumwagewouldresultinhigherwagesnot
onlyforthe3.7millionpeopleearningminimumwage,butalsoforupto3
5millionworkerswhomakeup
to150%ofthefederalminimumwage
WhiteHouseCouncilofEconomicAdvisors:anincreaseto$ 10.10anhourwouldraisewagesfor28
millionAmericansaboutninemillionofthoseduetotherippleeffect

Topic:EmployeeTurnover
Questions: 1.D oyoureallythinkthatturnoverwillincreaseifemployersaremakingmore?(talkaboutAdam
Smithandraiseineconomy/demand)
Argument:Increaseworkerproductivityandreduceemployeeturnover.
(Rebuttal:Shutteenagersandadultsourofworkforce.)
InformationandMacroeconomics:Increasesinwagesareassociatedwithincreasedproductivity,
accordingtomanyeconomists
SocialEurope:AlanManning,DPhil2014"Astheminimumwagerisesandworkbecomesmore
attractive,laborturnoverratesandabsenteeismtendtodecline."
UniversityofCaliforniaatBerkeley:2014studyfound"strikingevidencethat...turnoverratesforteens
andrestaurantworkersfallsubstantiallyfollowingaminimumwageincrease,"decliningbyabout2%fora
10%increaseintheminimumwage.
Asbcouncil.org: 2014survey53%ofsmallbusinessownersbelievedthat"withahigherminimumwage,
businesseswouldbenefitfromloweremployeeturnoverandincreasedproductivityandcustomer
satisfaction."

Topic:Education
Questions: 1.D
oyouthinkthatitisfairforteenstodropoutofschooltosupporttheirfamilies?Theywill
neverbeabletoimprovewithalifestylelikethis.
2.A
reyoulookingtoincreasethedropoutrate?
Argument1:Increaseschoolattendanceanddecreasehighschooldropoutrates.
(Rebuttal:Decreaseenrollmentandincreasedropout)
HumanImpactPartners:2014studyteenswholiveinpovertyaretwiceaslikelytomissthreeormore
daysofschoolpermonthcomparedtothosewhodonotthusraisingtheminimumwageandlifting
familiesoutofpovertywouldmeanchildrenwouldmissfewerschooldays.Thestudyfoundthat"recent
experimentalstudiesshowthatincreasingincomecanimproveschoolperformance."
Increasingtheminimumwagewouldallowteenstoworkfewerhoursforthesameamountofpaygiving
themmoretimetostudyandreducingthelikelihoodthattheywoulddropoutofhighschool
Virginia.edu:2014studybyAlexSmith"anincreaseintheminimumwagefrom$7.25to$10.10(39%)...
wouldleadtoa24percentagepointdecreaseinthelikelihoodthatalowSES[socioeconomicstatus]
teenwilldropout."
Argument2:Graduationfromfouryearcollegesatalltimelow,whichcanforcepeopleintolowwage
jobs.Raisingtheminimumwagetoabout$10wouldmakealowwagejobmoresustainable.
NationalCenterforEducationStatistics:Graduationratefrom4yearcollegein2008was60%
Thisratehasnotgoneup
Peoplecantgetgoodjobswithoutcollegeeducation
Mightgetstuckinminimumwagejobfortheirwholelife
Theyneedtobeabletosustainthemselves

Argument3:Peoplewhodidgraduatecantgetotherjobs
NextCity:20144 60,000Americanswithcollegedegreesearn$7.25.(reportsnumbersdidnotinclude
minimumwageworkersinstateslikeNewYork,NewJersey,OregonorCalifornia,wherethelowest
hourlypayis$8ormore)

RaisetheFederalMinimumWageto$10.10b
yChloeVeth,CalebPowell,andSamDocker

Topic:Crime
Questions: 1.Doyouwantcrimetocontinueincreasing?
2.R ightnow,peopleareboredsotheyareperformingcrimes,iftheyhadjobs,wouldnt
thiskeepthembusy?Theywouldhaveatruthfulwaytogetmoney.
Argument:Reducecrime
(Rebuttal:Wontreducecrime)
Virginia.edu:2016study"higherwagesforlowincomeindividualsreducecrimebyprovidingviableand
sustainableemploymentraisingtheminimumwageto$12by2020wouldresultina3 to5percent
crimedecrease(250,000to540,000crimes)andasocietalbenefitof$8to$17billiondollars."
Nber.org:2013studylivingwageordinances"leadtomodestreductionsinexpectedrobbery,burglary,
larceny,andMVT[motorvehicletheft]rates."
BostonCollege:ResearcherswhostudiedcrimeratesandtheminimumwageinNewYorkCityovera
25yearperiodfoundthat"increasesintherealminimumwagearefoundtosignificantlyreducerobberies
andmurdersa1 0percentincreaseintherealminimumwageresultsina6.3to6.9percentdecreasein
murders"anda3.4to3.7percentdecreaseinrobberies

Topic:Statesthinkitisagoodidea
Statesaretakingaction:CaliforniaMinimumWageis$10asofJanuary1,2016
ABCNews:2 .2millionworkersarepaidtheminimumwageinCalifornia,accordingtothegovernor's
office
HuffingtonPost:2 3stateshavealreadyraisedminimumwagetooverfederalwage

HistoryofMinimumWage:Whywasitcreated?(Visions)
Study.com:FairLaborStandardsAct1938
Itmandatedthatworkerswouldbepaidalivingwage
Itmandatedthatworkerswouldbepaidforovertimework
Itcreatednewlawsregardingchildlabor

EnlightenmentThinkers:(AdamSmith)
Givepeoplemoremoney,theywillhavemoretospend,moremoneygoesbackintoeconomy
BillofRIghtsInstitute:P
uttingmoremoneyintothepocketsofpeoplewhowillspendthismoney,
circulatingitbackintotheeconomy.
Withcurrentminimumwage,peoplemaybeworkingfulltimeandstillbebelowthepovertyline.
Byraisingminimumwage,fewerfulltimeworkerswillneedtobesupportedbyourtaxdollars.
Increasemoneyincirculationwillincreasesmallbusinessesandincreaseemploymentrates.


RaisetheFederalMinimumWageto$10.10b
yChloeVeth,CalebPowell,andSamDocker

OtherRebuttals:
Rebuttal1:HurtBusinesses,ForceCompaniestoClose
1994studyinNewjerseyshowedthattherewasverylittleeffectonjobstabilityafterraisingthestates
minimumwage.Alsoputsmoremoneyintoconsumerspockets,whichtheywillspendatthestores,and
thebusinessmaygrow
Rebuttal2:DisadvantageLowSkillWorkers
Workerswilljustlearntoworkharder.MostpeoplehavetheskillsettoworkatplaceslikeMcDonald's
andplaceslikeWalmartarehopingtohire250,000veteransby2020,peopledocareabouttheless
skilled.
Rebuttal3:ReduceLikelihoodofUpwardMobility
Payingmoretoeachworkerforhisserviceswillincreaseselfworth,whichwillbeamotivatortowork
more,whichinturnwillincreasenetworth,andhelptomovesomeoneupawayfromthepovertyline,and
intothesustainableliferange.
Rebuttal4:CompanieswillUseMoreRobotstoreplaceEmployees
IndramatUS:Theaverageannualwageforentrylevelfactoryemployeesisaround$25,000ayear.The
roboticworkerBaxterontheotherhand,costs$32,000
Machineswillcostmuchmoremoneytofix...
Rebuttal5:HarmPoorestareasofUS
M
illionsofpeoplecanbebroughtoutofpoverty,explainhowthiswouldcreatemorepoverty.
Rebuttal6:IncreaseHousingCost
H
owwillthisincreasehousingcost?
Rebuttal7:FreeMarketshoulddeterminewage,notFederalGovernment
T
henhowdoesthegovernmentmakesurethatallAmericansaretreatedfairly?
Rebuttal8:DecreaseEmployeeBenefitsandincreasetaxpayments
H
owwouldtaxesbeincreasediflesspeoplewillberelyingongovernmentprograms?
Rebuttal9:Encouragecompaniestooutsourcejobstocountrieswherecostsarelower.
Donttheyalreadydothis,employerswontchangewhattheyarealreadydoing?
Rebuttal10:Increasepriceofconsumergoods
BillMoyers.compointsoutthatiftheminimumwagewasincreasedto$12anhour,thec ostofanaverage
shoppingtriptoWalMartwouldincreasebyjust46cents,oraround$12peryear.Thisraiseis$1.90
morethanthedollaramountthatwearearguingwhichmeansthatthepriceofconsumersgoodswillgo
upevenless

RaisetheFederalMinimumWageto$10.10b
yChloeVeth,CalebPowell,andSamDocker

Fool.com:2015,largestretailerintheworld,WalMartannouncedaradicalplantoboosthourly
payforabout500,000fullandparttimeassociatesto$10byFeb.2016fromthecurrentfederal
minimumwage

EPI:WhoWillBenefitfromTheRaisetheWageAct?

35millionworkers(morethanoneinfour)
30percentofwageearningwomen(whichequals19.6millionwomen)
35percentofAfricanAmericanworkers
38percentofHispanicworkers
15.5millionworkingmen
Adults:89percentofaffectedworkersare20yearsoldorolder
Parents:27.7percentofaffectedworkershavechildren
Lowerincomefamilies:Halfofaffectedworkershavetotalfamilyincomesoflessthan$40,000ayear
Collegeeducatedworkers:45percentofaffectedworkershaveatleastsomecollegeexperience
Children:17.5millionchildren(23percentofallU.S.children)haveatleastoneparentwhowillgeta
raise

Other:

HuffingtonPost:1 ,532,000hourlyworkersweremakingthefederalminimumwagein2013,About50.4
percentoftheseworkerswereages16to24,andjustunderaquarterwereteenagers.About64
percentofthemworkedparttime.

HuffingtonPost:Anadditional1 .8milliontippedemployees,fulltimestudents,disabledworkersand
othersholdingjobsexemptedfromfederalminimumwagerequirementsearnedwagesoflessthan
$7.25anhour.Thefederalminimumwagefortippedworkersis$2.13perhour.

HuffingtonPost:2 7,800,000workerswouldseeanincreaseinwagesifthefederalminimumweretobe
increasedto$10.10overthreeyears.AccordingtotheEconomicPolicyInstitute,88percentofthem
areolderthan20andathirdareover40.N ationalEmploymentLawProjectsaystwothirdsofall
lowwageworkerswereemployedbylarge,highlyprofitablecorporations.

HuffingtonPost:5 ,000,000peoplewouldhavebeenliftedoutofpovertyundertheplantoraisethe
minimumwageto$ 10.10overthreeyears,accordingtoastudypublishedlatelastyear.


RaisetheFederalMinimumWageto$10.10b
yChloeVeth,CalebPowell,andSamDocker