What does “a fair day’s work for a fair day’s wages” mean to you?
Fair wages for a fair day’s work is a simple concept, the wages must be commensurate with the task being performed as well as enough for a reasonable individual to survive. Franklin Roosevelt developed the first minimum wage in the United States occurred in 1938. The first minimum wage was set at .25 cents, which doesn’t sound like very much; however, in that time it would be equivalent to $4.00 in today’s money. Many conservatives vehemently object to the need for a minimum wage and even insist it drives away jobs. The additional arguments made in this regard is that hurts the economy by raising cost on corporations. Fair wages actually help the economy rather than hurt it;
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Jarred Bernstein argues in favor of raising the minimum wage he cites many positive aspects to raising the wage as well as how the cost for such an increase can be offset in a variety of ways, without the necessity of mass firing or even a hiring freeze. Kevin Hassett argues from the point of view that raising the minimum wage will help some and harm many more. The article presents a point comparison of the issue and each one of the points is placed side by side. The reader gets to choose which economist they prefer, however the article conveniently omits points that are proven such as the Ford Motor company from it, so it deals almost entirely in …show more content…
Wages in the U.S. economy have remained flat even when corporations have made record profits; one company, Aetna which raised the minimum wage from 12 dollars to 16 and even added additional medical benefits to the mix. The article also argues that there is a direct correlation between economic growth and equal pay by citing statics from the 1950’s economic boom. The article uses a very good quote which sums up the authors case very clearly, “If you pay people better, they are more likely to stay, which saves money; job turnover was costing Aetna a hundred and twenty million dollars a year. Better-paid employees tend to work harder, too,” (James Surowiecki, New Yorker). The article sums up by stating that there is no economic imperative for corporations to pay their workers so little, rather a horrible group think has developed that makes paying workers as little as possible while at the same time placing increasingly hard task upon them as the
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)
The article discusses the minimum wage has not kept up with the current cost of living, and that it is
Minimum wage is a topic that has been popping up since the 1980s. From whether we should lower it, or even raise it, but now in the 2000s minimum wage has been the center of attention more than ever. There are two sides to this topic of minimum wage; whether it creates more jobs or does not create jobs. Those who argue that raising minimum wage will create more jobs will have a rebuttal which is that it does not only cause the loss of jobs but that it would make things much worse and vice versa for those arguing raising minimum wage will cause loss of jobs. There will be two authors representing opposite views, Nicholas Johnson supporting minimum wage will not cost jobs with his article “ Evidence Shows Raising Minimum Wage Hasn’t Cost Jobs”
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
In an editorial written by Warren Buffett for the Wall Street Journal, according to S. Kumar in his article “America’s Workers Have Bigger Problems than the Minimum Wage” for Fortune Magazine, the problems that American workers face are far more than just attaining a livable wage. The three biggest problems that Americans face include the growing power of corporations, competition against technologies, and the growing income inequality that requires specialized skills where low-wage workers may not have education or capabilities to adapt. However, the minimum wage is still a serious problem, according to Roger Lowenstein. Lowenstein writes that the minimum wage does not provide a livable wage, which is a real problem when families are trying to survive on income that is too low even for an
...fort to increase equality and help the poor is laudable. However, the livable wage presents a dangerous precedent in social reform because it is an anti-business policy which is caused from limiting free market capitalism. The livable wage tells companies what they must pay their employees, and the costs of the mandated wages are often many times higher than the federal Mininum wage. This regulation is unnecessary and hurts American business which then hurts the economy as a whole. Instead of a social reform that goes against business, politicians should use reforms that do not have unintended costs on business like lowering the taxes of low income families. Instead of a social reform that goes against the American ethos of supporting business, a policy lowering taxes for would be more efficient in helping low income families. All social policies must be examined carefully for their effects on business because of the importance of businesses in the welfare of the economy.
Mandelbaum, Robb, “There is a Salary Gap when pay themselves”. New York Times. Ed. Abramson Jill, Pub: New York City, February 18, 2014
Minimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N. Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw 6-1b). Currently, the minimum wage in the United States is $7.25 per hour. For many years politicians and citizens have argued on what should be the minimum wage that would benefit the economy and society in general. A minimum wage was first established in 1938 to increase the standard of living of lower class workers. To discuss what is better for the country and its citizens, people have to understand what is a minimum wage and what are its effects.
More than 4.6 million people live in poverty in the US. A question often raised when talking about minimum wage is, would raising it lower this number? The consensus is, yes, it would. If the federal minimum wage was raised, at lot of peoples’ incomes would grow, not just low wage workers. As employers shifted their pay scales upward, many incomes would grow. According to Jared Bernstein, the former chief economist of the Obama Administration, this isn’t as relevant as the impact is would have on low wage workers. He explains how, although many other people would benefit from an increase in minimum wage, most of the help would go to those who need it. He also notes, “We must be careful not to be wedded to poverty thresholds that are inadequate measures of who needs the help.” If the minimum wage was raised to $10.10 per hour, 2 million people would be lifted out of poverty (US Department of
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.
They have long argued that requiring employers to pay workers more will force many of them to either cut back on hours, put off hiring, or lay off employees in order to keep their labor costs down. “Raising the minimum wage will kill jobs and stifle economic output,” NFIB Manager of Legislative Affairs Ashley Fingarson said earlier this week, as the organization sent a letter to the Senate urging lawmakers to vote against a bill that would raise the minimum hourly rate from $7.25 an hour to $10.10 an hour. (The Washington Post) Many businesses will be hurt by the increase in wage rate due to lack of expenses of paying employees more, causing businesses to lose money and even go out of
Staff, NPR. "Raising Minimum Wage: A Help Or Harm?" NPR. NPR, 8 July 2012. Web. 20 May 2014.
Author Greg IP, describes real pay as the amount an individual makes in monetary terms after accounting for inflation. The logic behind this theory is that “the more a worker produces for his employer, the more he’ll earn” (Ip, 2013, p. 58). Greg Ip, provides an example of this theory and its dilemma in his book titled The Little Book of Economics: How the Economy Works in the Real World. Greg Ip, states that “someone with a backhoe can dig more than someone with a shovel”, therefore it may be expected that the employee who produces more is compensated respectively (Ip, 2013, p. 58). However, the employment world does not always guarantee that the highly productive employee will benefit more than the employee with less productivity and often it is the “employer” who gains the capital profitability in this employment agreement and other times it is even the consumer of the product or
Many critics claim that that raising minimum wage increases unemployment, especially for unskilled workers, and harms small businesses, including grocery stores and restaurants. The argument declares that companies such as these rely mostly on unskilled workers for labor, and if the minimum wage increases, then their profits and, therefore, hiring would decline, creating a...