Does the Minimum Wage Really Help the Working Poor?
Directions Part A: Read the following passage and use it to address the statements
below. As you read underline positive statements and circle normative statements.
Remember:
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Positive= analysis based on facts.
Normative= analysis based on value judgments
In 1938, Congress enacted the federal Fair Labor Standards Act, commonly
known as the “minimum-wage law.” Today, a minimum-wage worker who works full
time still earns a deplorably low annual income. One approach to help the working poor
earn a living wage might be to raise the minimum wage. Some politicians claim that
raising the minimum wage is a way to help the working poor without costs to taxpayers.
Others believe the costs are hidden in higher prices for products and lost jobs for
teenagers, the elderly, and minorities. One study by economists examined sixty years of
national data and reported evidence that minimum wage increases resulted in reduced
employment and hours of work for low-wage workers.
Does raising the minimum wage aid the working poor? Studies show that only a
small percentage of minimum-wage earners are full-time workers whose family income
falls below the poverty line. What these studies show is that most increases in the
minimum wage go to workers who are not members of poor families. For example,
many minimum-wage workers are students living at home, or workers whose spouse
earns a much higher income. To help on the working poor, some economists argue that
the government should target only those who need assistance. Although this approach is
favored by some, the task of deciding which minimum-wage workers actually need a
higher wage is daunting.
Does the Minimum Wage Really Help the Working Poor?
Supporters of raising the minimum wage say it is outrageous that a worker can
work full time and still live in poverty. Moreover, people on this side of the debate
believe that opponents exaggerate the dangers to the economy from a higher minimum
wage. One could argue that a higher minimum wage will force employers to upgrade the
skills and productivity of their workers. Increasing the minimum wage may therefore be
a winning proposition.
Directions Part B: Use the above passage to respond to the following statements on
your own paper in complete sentences. Answers should be typed (double-spaced, Times
New Roman, size 12). Please include the question above each answer.
1. Identify a positive and a normative statement given above concerning raising the
minimum wage.
Sample Response: A positive statement concerning the minimum wage is
“_____________.”
2. Give a positive and a normative argument why a business leader would oppose raising
the minimum wage.
3. Give a positive and a normative argument why a labor leader would favor raising the
minimum wage.
4. Explain your position on this issue using positive and normative reasons for your
decision.