Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
History of minimum wage
Economic effects of raising the minimum wage
Economic effects of raising the minimum wage
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: History of minimum wage
The Economic Impact of the California Minimum Wage Increase 1.0 Introduction On September 25, 2013 California Legislature passed Assembly Bill 10 increasing the minimum wage to $10 per hour by January 2016.1 This increase in minimum wage marks California as having the highest minimum wage of any state in the nation. Jerry Brown, governor of California, said in a statement, “The minimum wage has not kept pace with rising costs. This legislation is overdue and will help families that are struggling in this harsh economy.” 2 Although California AB-10 is a step towards reducing the state’s poverty, it will fall short of helping low income families in the long run due to inflation and the reduced purchasing power of the fixed wage.Thesis 1.1 History of Minimum Wage Federal law mandates that employees working in the United States get paid no less than the statutory minimum wage. The first federal minimum wage was signed by President Franklin Roosevelt in 1938 at the height of the Great Depression.3 Its primary focus was to keep American workers out of poverty. Moreover, the wage increase would increase the consumer’s purchasing authority and restore the economy. It would also help to big businesses from underpaying its hard working employees. A raise in the minimum wage, however, has historically had a negative blowback on the unemployment rate. When minimum wages were changed from 1967 to 1968, the unemployment rate went from 3% to 3.6%.4 The unemployment rate, however, began dropping back down from 1968 to 1969. We saw a similar unemployment rate spike and settle when the minimum wage was raised in 1996 and 1997. This is due to some workers willing to work below the mandated minimum wage rate illegally, thereby pushing o... ... middle of paper ... ...992. [5] Bruno, C. (2013, March 12). Sacramento Spotlight: AB 10 – Minimum Wage Increase. Retrieved,May 5, 2014, from http://www.advancingafreesociety.org/eureka/ sacramento-spotlight-ab-10-minimum-wage-increase/ [6] Support Raising California’s Minimum Wage. (2013, August 11). . Retrieved May 5, 2014, from http://gov.ca.gov/news.php?id=18199 [7] Schumacher, K. (n.d.). Assembly Moves Forward a Much Needed Increase in the Minimum Wage. . Retrieved May 5, 2014, from http://californiabudgetbites.org/2013/05/30/assembly-moves-forward-a-much-needed-increase-in-the-minimum-wage/ [8] Johnson, K., & Greenhouse, S. (2013, October 13). In Washington State, Home of Highest Minimum Wage, a City Aims Higher. The New York Times. Retrieved May 5, 2014, from http://www.nytimes.com/2013/10/14/us/in-washington-state-home-of- highest-minimum-wage-a-city-aims-higher
Poverty continues to grow in America. The average minimum wage in the United States is $7.35 an hour- far too low in today’s society. Key expenses, for example, gas and housing prices, have gone up significantly since the minimum wage was last changed in 2007 (Wagner 52). The laws creating the minimum wage were intended to improve the standard of living and decrease poverty. Raising minimum wage is a vital step in decreasing poverty and giving every family the opportunity to survive and succeed. Millions of hard-working Americans are below the poverty line and need an increase in pay. Minimum wage must be raised because it will diminish poverty and assist the working class to support their families.
The minimum wage was, as it should be, a living wage, for working men and women ... who are attempting to provide for their families, feed and clothe their children, heat their homes, [and] pay their mortgages. The cost-of-living inflation adjustment since 1981 would put the minimum wage at $4.79 today, instead of the $4.25 it will reach on April 1, 1991. That is a measure of how far we have failed the test of fairness to the working poor.” (Burkhauser 1)
Imagine working under poor conditions for over 40 hours a week to afford basic human necessities only to remain nothing more than a cog in a corporal machine seen unworthy of livable wages. While this may seem unrealistic, it proves as reality for many lower class Americans. Minimum wage has seen a drastic decline in relation to the inflation of living costs, an issue addressed in Lew Prince’s, “The American Dream Needs a Fair Minimum Wage”. In the article, Prince, a business owner, states, “... in 1979, the minimum wage was $2.90 -- that would be $9.50, adjusted for inflation in 2014 dollars”. Even with this information, many americans above the poverty level line argue against an increase in wages. Although opinions often
Many people against raising the minimum wage create arguments such as, “it will cause inflation”, or, “ it will result in job loss.” Not only are these arguments terribly untrue, they also cause a sense of panic towards the majority working-class. Since 1938, the federal minimum wage has been increased 22 times. For more than 75 years, real GDP per capita has consistently increased, even when the wage has been
Alex, Er E.M. Hess, and Thomas C. Frohlich, 24/7 Wall St. "Eight States with the Highest Minimum Wages." USA Today. Gannett, 03 Dec. 2013. Web. 07 May 2014.
National Conference of State Legislators (NCSL). "State Minimum Wages." State Minimum Wage Chart. N.p., n.d. Web. 24 Oct. 2013.
A federal minimum wage was first set in 1938. The first minimum wage was just 25 cents an hour in 1938. Can you imagine surviving off of 25 cents an hour? Now just over 70 years later the federal minimum wage is now 7.25. The question at hand is the federal minimum wage enough to meet the minimum requirement for a good, happy and healthy life? Some states and cities say no. While a select few states and cities have mirrored the federal minimum wage of 7.25, some states have placed their state or city/county minimum wage marginally higher than the federal minimum wage. So why would some states prefer to have a higher level than required by the federal minimum wage when some state have decided to match or even go below the federal minimum wage level. The answer to this question lies within each state city and county and how they perceive the cost of living in the presiding area. Minimum wage needs a makeover in America despite some of the negative effects that may come along with it. This paper will explore the reasons behind federal and state minimum wages and why some of them differ among states counties and cities across America.
A. Idaho has the highest percentage of minimum-wage workers per capita of any state. (Maben)
On April 4, 2016, California Governor Jerry Brown signed a bill that would significantly raise the minimum wage for California workers. By 2022, California 's workers will receive a minimum wage of $15 per hour (Kurzweil, Anthony, Sara Welch, and Kareen Wynter). Brown signed this bill because employees cannot live above the poverty line if their minimum wage is not proportional to the cost of living (Scheiber, Noam, and Ian Lovett). The purpose of the minimum wage is to ensure that workers can provide essential amenities for themselves and their families. Many economists have been in a debate about this topic with mixed feelings, whether increasing the minimum wage would be a reasonable legislation or not. For most average American workers, at first, the idea of raising their salaries might make them feel thrilled and optimistic. However, increasing the minimum wage will have its pros and cons effect on the economy. Despite numerous of arguments from both sides, a compromise can be met regarding minimum wage.
Many people can think back and remember what it was like to put in an application for that first job and be presented with a position. Taking that position represents adulthood and is a very exciting time for a young person. All first jobs usually start with a minimum wage. Minimum wage is the minimum an employer has to pay an unskilled worker based on the regulations set forth by the Fair Labor Standards Act (FLSA) that was originally established in 1938. As people think back about their first jobs they can also remember what the minimum wage was when they took that position. Minimum wage is only increased based on the cost of living from the prior year. If the previous year shows an increase then the minimum wage will increase in the coming new year. Sinegal (2009) stated "The increase in the minimum wage is long overdue. Paying your employees well is not only the right thing to do but it makes for good business". Based on the cost of living we show for the year of 2009 minimum wage will not increase for 2010. Minimum wage is currently at $7.25 per hour. Most people who start at this rate are young people who are in high school or college and are working a few hours to help pay for school. After they graduate they can apply for better jobs and move on. People who live in areas without growth, single mothers trying to raise their children, and uneducated people are working more than one minimum wage job to make enough money to pay their financial obligations. While the cost of living did not increase, minimum wage is low because no increase is planned for 2010 a...
Currently, in the United States, the federal minimum wage has been $7.25 for the past six years; however, in 1938 when it first became a law, it was only $0.25. In the United States the federal minimum wage has been raised 22 times since 1938 by a significant amount due to changes in the economy. Minimum wage was created to help America in poverty and consumer power purchasing, but studies have shown that minimum wage increases do not reduce poverty. By increasing the minimum wage, it “will lift some families out of poverty, while other low-skilled workers may lose their jobs, which reduces their income and drops their families into poverty” (Wilson 4). When increasing minimum wage low-skilled, workers living in poor families,
According to Principles of Macroeconomics by Gregory Mankiw, “The U.S. Congress first instituted a minimum wage with the Fair Labor Standards Act of 1938” (Mankiw 4-119). Minimum wage is used to set a limit of pay employers must pay their employees. Through the years the minimum wage has raised as productivity has raised. The minimum wage has constantly fluctuated and changed multiple times.
Wittner, Lawrence. "The Minimum Wage Should Be Raised." The Huffington Post. TheHuffingtonPost.com, 10 Nov. 2013. Web. 12 Mar. 2014.
Since its inception, the minimum wage has been a hotbed for debate. If today’s leaders could manage to increase minimum wage, millions of families would benefit.
On the 1st of April 1999, the National Minimum Wage (NMW) was introduced in the UK at a rate of £3.60 per hour for workers aged 21 and older, and at a rate of £3.00 for workers aged 18-21. Since then, it has grown steadily to reach a rate of £6.31 per hour today. The NMW is “the minimum pay per hour that almost all workers are entitled to by law” (www.gov.uk). In 1999, 1.9 million people were paid less than £3.60, sometimes even below the Living Wage due to the dismantling of unions by the Thatcher government. The idea of a minimum wage then came up, supported by the Labour Party, in order to reduce the increasing poverty and to prevent low wages workers from being exploited by their employers. The Conservative Party, supported by employers, was strongly opposed to this project, arguing that a minimum wage will damage the economy and create poverty due to higher unemployment levels. So, how does the NMW really affect poverty and employment in the UK?