Economic Turning Point

Drew James Doughetry

5/2/2015

Connie Douglas - English 112

Dear Reader,
First off I would like to thank you for you taking time out of your day to read this. Inclosed
you will read about my line of inquiry on what would happen if the minimum wage to be raised
and the possible outcomes, good and bad alike. There are many people that would be effected
in the event that this happened but I choose to focus on three primary voices, the government,
employees, and employers.
During this project I hoped to gain a deeper understanding of the impact caused from
raising the minimum wage. I wanted to be able to hold an in depth conversation that would
provide facts and reasonable arguments. This topic was intriguing because the debate has
recently starting to swirl and their is legislation making its way to congress to be voted on. In the
years past their has been raises but they have been small, nothing over a dollar. The general
push has been for a wage that is over ten dollars, almost a three dollar raise. Economist,
congressmen and even everyday people have an opinion on the subject, In some cases the
opinions have clashed so hard that fights have broke out. I believe that if the minimum wage
were to be raised their could potentially be a huge economic swing.
Through out the research I found it lead me to believe even more that raising the
minimum wage would cause more harm than good. Over and over again I saw how the
increased wages would cause things such as job loss and inflation. I also learned that as the
wage was increased over the year so did high school drop out rates. The rates have increased
because the students see the money they could be making now is more meaningful than the
schooling they could be receiving. No one could predict exactly what would happen if the
minimum wage was increased but they are able to evaluate the data from when the wage was
increased in the years past.

Through the genres I wanted to express my opinions of what I learned and the possible
outcome in the event of the a minimum wage increase. The short story told the view of a young
student that had a financially unstable household, he was forced to make a decision to stay in
school or bring in some extra income for the family. The Interview showed the different struggles
that a large company could face compared to the challenges of a small business. The flyer was
meant to highlight the shortage of jobs that could incur from a wage increase. The advice
column showed the thoughts and challenges different people came across, a small business
owner deciding to lay off workers or not, a father struggling to find another job to put food on the
table and a young boy conflicted about having a job that someone else could use more than
him.

Genre 1 Interview
Me: Hello Albert Wilmington, my name is Drew Dougherty, I work for Fox News Economics journal. I know
you have places to be but I have a couple questions I would to ask if you have a moment.
Albert: Nice to meet you Drew, I am happy to talk. I have a few minutes, ask away.
Me: Thank you very much. Just so people understand you have made millions on in the business world.
You have started 2 fortune five hundred companies, on the board of 2 more, and have a few small
business ventures. Am I correct?
Albert: Yes you are correct, You make me seem like a genius when in all reality I have made some smart
decisions. I have some flops too.

Me: Those flops are nothing compared to the successes you have. Many entrepreneurs look up to you
and want the power you have. But back to the reason we are here. The market has been out of sorts
since the government has passed the bill to raise the federal minimum wage. Do you think they made the
correct decision?
Albert: We wont be able to consider their move to be beneficial or not until some more time has passed
and we are able to measure the analytics. The initial impact on the inflation rate leads me to believe that
this was not the correct choice.
Me: What would you say has been the biggest challenge since the pay increase?
Albert: I would say the biggest challenge we have faced as a large corporation and my small businesses
are the cost of production increase. Both have seen a raise in the price to pay the workers. The large
companies I am apart of have been able to hold their own, they make enough profits to pay for the
increased wages. The profit margins are suffered tho, some major changes will be made to cut costs and
bring back those wages. We have been able to hold off on laying off workers. My small businesses have
not suffered the same fate. We have been forced to lay off a few workers and our prices have had to be
raised by a little forcing some customers to go other places.
Me: So you said the large corporations have been able to hold their own. Does that mean they havent
faced any hard times recently?
Albert: No, things have been tough for them just not as difficult in comparison to the small businesses.
Some positions have been cut and more responsibilities have been placed on some positions to make up
for those that have been lost and increase efficiency. Some of the prices for our products have seen a
slight increase. We saw two options, cut jobs or raise prices, neither set well with in our stomachs so we
tried to find a happy medium. We hope we are able to rebound quickly and open a few of those positions
again. The price raise has made us lose a few customers so we would like to drop those and regain them.
Me: Thank you again for your time, I know your very busy so I will let you go on with your day.
Albert: No problem Drew, it was short and sweet. Here is a card, we will sit down for lunch some day and
we can have a longer talk. Enjoy the rest of your day!

Genre 2 Advice Column

Freddy Talks
Dear Freddy,

Recently my tackle store has seen a drop in total revenue, we just dont have to the business we
used to have. To add on the losses the increased wages has my payroll to high to make money.
Should I lay off one of my employees?
DesperateOwner
Dear DesperateOwner,
Since the minimum wage has been increased their has been inflation across all markets.
Markets tend to fluctuate, we are in a price peak, prices will drop but not completely where they
were. With that being said my best advice to you would hold off laying off your employees. I
would advise you focus on your loyal customers, make sure they are happy and will continue to
return. You will have to raise your prices but not high enough to run of those that are loyal or
scare potential new customers. For the moment you will have to run with making less or no
profits, cut back hours, put more of your own time in at the store. Hold on as long as you can
before cutting people, the market will rebound and you will want those employees that stayed
loyal to you during harsh times.

Dear Freddy,
I am a father of two children, my wife passed away a year ago and I was just recently laid off. I
was making just above the old minimum wage, it was difficult to keep food on the table but it was
better than having no job. I was laid off because my employer said he was not able to pay the
increased wage. Its been over a month, over 50 applications and I havent been able to get an
interview. Any word of advice would go a long way.
Hopeful Employee
Dear Hopeful Employee,
First I am sorry for you loss but second I am proud of you for what you have done for your
children and effort to find another job. Recently the job market has been crazy, people getting
laid off, jobs are scarce and people are worried what they are going to do. The increased
minimum wage has forced many businesses to cut back on production cost and more people
are applying for these jobs. With those two things working against each other there isn't many
job openings available. It seems like you are a hard worker and I have faith you will land a job
soon, don't give up. In the mean time attempt to better yourself and set yourself apart from the
other applicants. Attempt to better your education if you are able to, do odd jobs around the
neighborhood. Times will be tough but stay strong you will find your way.

Dear Freddy,
I am a high school student but I have been working a minimum wage paying part time job for the
past two years. Over the past few weeks I have read about these adults that need a job to
provide for kids while I'm working to make a little extra money because my parents are

financially stable but they wanted me to learn time management and understand what work is.
Should I give up my job so someone else can work that might need the money more than me?
Highschool John
Dear Highschool John,
I appreciate you writing in and reading my column. The job market is a tough and competitive. It
is a nice thought to give up what you have to help someone but their is no guarantee that your
spot will be filled by someone that needs the money. Another high school student could take
over your position. I believe that you should keep your job and keep saving. You never know
what will happen in life but its a lot easier knowing you have some money saved up. You earned
that job and should continue to reap the benefits. The experience and skills you gain from
working is invaluable.

Genre 3 Short Story

Johnny Delrose was born to Jim and Kim, they also have 2 other kids Fred and Hannah. When
Johnny was just 16 years old his father abandoned him and his family all while his mother had
just got laid off because her employer was not able to pay her higher wages from the new laws.
Congress just passed an amendment that raised the minimum wage to $10.10 an hour causing
some businesses to cut back on employees to save on costs. After a few months the little
savings that Kim had saved up had been used. The price of groceries and living have gone up
so the savings went away faster than she thought. Kim was able to find a new job but could only
get enough hours to pay for the rent on the apartment they lived in. There was nights that the
family of four would have to split a meal that was meant to feed one or two people. Hungry and
wanting money for new shoes little Johnny set out to find a job so he could help his mother.
Johnny was a hard worker and quickly gained the trust of his employer, they wanted to give him
more hours and more responsibility but he was still in high school and was unable to work that
much. School was never his thing and didn't want to try to learn the material. So one day after
his sophomore year little Jonny decided he was going to drop out and take his manager up his
offer about working more, he thought he could always go back and finish his education. In his
eyes, Johnny believed the money now was better than the education he would receive. He
believed it was his duty to be the man of the house and start pulling his weight by collecting a
larger pay check. He knew that in the years before congress passed the amendment the pay he
would had received would not have been enough to support the family but now he saw he was
able to help. As little Johnny continued to move through his life he never went back to school
and continued to work. He stayed with the same company until they closed their doors, with no
degree and the job market even more competitive he struggled to get another decent job. He
worked the jobs he could manage to get but they didn't offer much room to grow in the company.
He would grow up to have his own family but would struggle to make ends meet because he is
stuck at these dead end jobs.

Genre 4 Flyer
Separate document because I could not get the flyer in to this document properly

Genre 5 Round Table essay

Voices at the table

In 1938 president Franklin D. Roosevelt signed the Fair Labor Standards Act which
seemed revolutionary at the time. The bill would set labor standards that were needed such as a
maximum workweek of 44 hours and a minimum wage of 25 cents an hour. In todays society

these laws are the norm but in 1938 some employees would work 80 hours a week for only 25
cents a week. Today the workweek is set at 40 hours and the minimum wage is $7.25 an hour.
Many Americans argue that this is not a wage that someone can possibly live on and their is a
large push for congress to raise the minimum hourly pay to above $10 an hour.
When talking about raising the minimum wage many people believe that the employers
are the first to be effected since they would be the ones shelling out the money to pay for the
wage increase. In the business owners eyes those employees have done nothing that would
warrant such a pay rise. Minimum wage jobs are intended to be for teenagers or a entry level job,
usually not a career that would allow much advancement but some do. A lot of these lower level
jobs are the burger flippers and cashiers that do not require much skill to complete their job. An
owner does not want to over pay someone to do a job that doesn't require a lot of intellectual
power to complete. A little under 25 per cent of the American workforce is earning the current
minimum wage or would see a increased wage due to pay scales (citation). Large corporations
would see the largest increase in their cost of production since they employ the most unskilled
labor, most would be able to cover the cost with their rather large profit margins. Its the small
businesses that would hurt the most, they do not have the profit margins these larger businesses
have. Some are not making the profits needed to pay the employees the proposed wage hike,
some might have to lay off some employees while others could potentially close their doors all
together. In some studies done, a dollar wage increase would cause a loss of jobs at a rate of
1.5% (Gitis). Even though that is a small percentage, that is a lot of real number jobs that would
be lost. The larger companies would be able to handle the pay increase but the profits margins
would be hurt, as a CEO it is their job to make those margins as large as possible. Some would
turn to cutting jobs but others would pass those cost on to the consumers, even those that didn't
receive a pay raise.
Many would agree that the group most effected by a potential minimum wage increase
would be those that are working for the wage. Even though these are entry level positions usually
created for teenagers or someone looking to make a list extra money, many adults are forced to
work these jobs while providing for themselves and their children. Someone that works 40 hours
a week for the mandated minimum wage are still considered to be below the poverty line dictated
by the government. It is difficult for someone to live on their own for 12 thousand dollars a year,
add a kid or two, it is next to impossible to keep food on the table and clothes on their back. The
proposed minimum wage increase would earn an extra 3500 dollars that could be used to keep
putting food in their mouths (Dobkin).
Another group, often over looked, that could see a benefit of the pay increase would be
the government. Considering the current minimum wage would still leave most workers under or
right at the government set poverty line many of the citizens are receiving some of government
assistance. This assistance comes in many forms such as food stamps, tax credits, housing
assistance and many more. Some experts say the proposed wage increase would phase out or
reduce the amount that many these families are receiving, potentially saving billions that the
government could be using for other government funded programs (Cooper). The revenue from
the federal income tax would also see a large increase. The money saved coupled with the
increased tax revenue could be used in other programs like the military, road repairs and
construction or even increase the NASA budget which has seen a large cut over the years. A fear

of many tax payers is that the high ranking officials could give themselves a pay raise since
almost a quarter of America did.
Regarding the debate to raise the minimum wage all the involved parties stand to loose or
gain something but most will agree that too many American citizens are living in poverty. The
increasing debate shows that their is clearly an underlying moral reasoning that so many people
want to help those in need. A higher minimum wage would put more money in their pockets but
it could potentially cause other problems such inflation or increased unemployment. Regardless
the underlying issue is that to many people live in poverty and something needs to be changed,
raising the minimum wage is just one way to possibly help the situation.

Rationales
I used an advice column from the print media genre to highlight some of the struggles a small
business owner and some employees might encounter if the minimum wage were to be raised. I
made it so that they would write in to Freddy about some issues they are facing. The first to write
in is a small business owner, he is facing a decision to lay off an employee or two because he
has not been making enough money to pay for the increased wages as well he has seen a drop

in customers because his prices have had to be raised a little. The second to write in is a
struggling father that has been laid off and is struggling to make ends meet. The job market has
become more competitive and he is having a difficult time finding another job to keep food on
the table. The third to write in is a high school student that is working to make a little extra
money. He feels guilty about holding the job because their are other people that need a job more
than him since his parents are financially able to provide for him. He knows the job market has
become a lot more competitive and wants to attempt to help someone in need. For this genre I
used Ben Gitis article on the decrease on the employment rate a increased minimum wage
would have and Dewight Lees article on the moralities of the minimum wage.
The second piece of work I created was flyer from the visual with words. The flyer is for a job
fair that would be held at the downtown campus. I used the job fair flyer to show the need for
jobs. The job market would become extremely competitive because the increased wages would
require the employee to be better than before. The jobs available would become slim to none.
The job fair would allow potential employees to meet the employers that are actually looking for
workers while teaching them how to set themselves apart from the next candidate. I used Ben
Gitis' article about the increased unemployment rate due to higher wages.
The third genre I used was the informational genre. From there I choose to do an interview of a
made up business genius. Albert Wilmington is running fortune 500 companies as well as small
businesses, I asked about the effect the increased wage has had on both, the large and small
businesses. He explains both large and small are facing the problem that they are seeing
increased cost of production because they have to pay the employees more. The small
businesses have felt it the most because they do not have the same profits to cover the
increased wages. Albert also touches on the dilemma they face to raise prices or cut jobs.
Neither are ideal situations but something must be done to gain back some of the profits they
lost. For this genre I used Ben Gitis article on the decreased employment rate due to the
increased wages, Melissa Kearneys article on the ripple effect that would cause those working
above the minimum wage to see an increased wage. I also drew from Arthur Macewans article
about the inflation increase related to a higher wage.
For my 4th genre I decided to write a short story from the creative writing category. This story is
about a high school student that drops out to join the workforce. He saw that he was able to
make more money than years in the past. Higher wages coupled with his mother struggling
financially he decided this would be best for him and his family. This short story illustrates the
decision some might face to go get the money, which is now more than before, rather than
staying in school. The life of Johnny shows the real life push and pull factors he faced, the
push being he never liked school and the pull his family needing money to feed the family. The
push and pull theory is talked about by John Warren in his article on the effect that the minimum

wage increase has had on high school drop out rates. I also highlighted what Ben Gitis article
about how the increased minimum wage would reduce the employment rate

This project has been like no other I have done in my years of school. It has challenged
me in way I did not think would. I believe that a regular research paper may have been easier
but Im glad I had the opportunity to do this, I have been forced to think in new ways. I enjoy
thinking outside of the box and this has helped me do so, I also believe this project will help me
in my later endeavors due to the new thought processes I have used. The topic itself has
pushed me more than I thought it would. Going in to my line of inquiry I believed the minimum
wage should stay the same or even be reduced rather than increased like many are lobbying for.
I thought and still believe that a lower wage would increase competition in the workforce in the
sense they would have to work harder for a pay raise rather than just be given one. However, my
opinion has been changed to a point, I understand the minimum wage is a necessary evil. I
understand that not only is there a need for one but also the moral reasoning as to why some
want to raise and help those living near or below poverty line. I still believe the effects on the
economy will be bad but not as bad as before. The hardest part of the research was finding
information on what would happen in the event the minimum wage was raised, all the
information available is from studies done from when the wage was raised in the past.

Reflection
This project has been like no other I have done in my years of school. It has challenged
me in way I did not think would. I believe that a regular research paper may have been easier
but Im glad I had the opportunity to do this, I have been forced to think in new ways. I enjoy
thinking outside of the box and this has helped me do so, I also believe this project will help me
in my later endeavors due to the new thought processes I have used. The topic itself has
pushed me more than I thought it would. Going in to my line of inquiry I believed the minimum
wage should stay the same or even be reduced rather than increased like many are lobbying for.
I thought and still believe that a lower wage would increase competition in the workforce in the
sense they would have to work harder for a pay raise rather than just be given one. However, my
opinion has been changed to a point, I understand the minimum wage is a necessary evil. I
understand that not only is there a need for one but also the moral reasoning as to why some
want to raise and help those living near or below poverty line. I still believe the effects on the
economy will be bad but not as bad as before. The hardest part of the research was finding
information on what would happen in the event the minimum wage was raised, all the
information available is from studies done from when the wage was raised in the past.