Minimum wage is the lowest compensation that employers may legally pay to workers and as of July 2016, the federal minimum wage is $7.25 per hour. Which when calculated for a week, 40-hour job, would equal $290, this amount after taxes would be barely enough for transportation (car or a Metrocard), food, healthcare, kids and/or pets and even laundry. Federal labor statistics suggest that minimum-wage earners are more often part-time youth, including college students and working parents, who may be laboring for additional money but not for their survival. While making below $15,000 a year is barely sufficient for high school students and college kids, it is not enough to successfully live on or raise families.
That means working as a low wage
…show more content…
One out of 10 minimum-wage workers are single parents and nearly two-thirds of workers in the United States are women and the minimum wage falls far below what it takes to live above the poverty line. Many working-class parents are employees at home healthcare facilities, child care facilities, restaurants, fast food and other tertiary sector jobs (service-oriented occupations) which are known to have irregular and inadequate schedule times with little concern for a workers’ preferences. This leaves little room for parents to plan adequate child care every week. Most women like Jonelle, a home care worker and warehouse employee in Illinois, makes just above $21,712 a year for her family of two, which eliminates her for eligibility for food stamps. Any more of an increase above $25,812 and Jonelle will lose her child care aid. Child care assistance is especially tough for workers with infants who tend to develop illnesses and or …show more content…
In an extensive review, by the Congressional Budget Office, researching the effects of minimum wage, discovered that surges in the minimum wage have no measurable result on employment. A more detailed study of pay differences displays the buildup of disadvantage for some groups compared to others. Gender and ethnic pay gaps multiple, so that African American women are paid less per hour than Caucasian women. Demos, a public policy organization, recommends implementing policies that raise the minimum wage, set up paid-leave insurance for working parents, guarantee reproductive rights, and more. Urging employers to change their own policies such raising wages, defending against discrimination and providing paid
When the question is asked "Who benefits and who loses when it comes to the minimum wage" there are really 2 ways to look at it, the short term effects and the long term effects . While the minimum wage laws usually aim to prevent poverty among lower income earners sometimes it create it rather than help prevent it.
Minimum wage is the lowest hourly wage an employer is legally permitted to pay an employee. Most employees are eligible for minimum wage, whether they are full-time, part-time, casual employees, or are paid on hourly rate, commission, piece rate, flat rate or salary. There are several different classes, which determine what minimum wage you will be entitled too. These classes are: General Minimum Wage, Liquor Servers Minimum Wage, Hunting and ...
The United States minimum wage is not indexed to inflation. Due to this fact, the purchasing power of minimum wage falls as the price of consumer goods increases. The current hourly minimum wage is set at $7.25, however many states do pay above this rate. One example of this is in Michigan, the current hourly minimum wage is $7.40. The last time a change occurred to raise minimum wage was in 2009. President Obama has put out a proposal that is designed to raise the federally required hourly minimum wage to $10.10 in 2015. The public opinion of this proposal is all over the board ranging from a positive outlook to a negative one. Some of the negative remarks are that it would dampen the economy and shrink the hiring done by small businesses. “The Household Survival Budget for the average New Jersey family of four is $58,500 and for a single adult is $25,368 in 2010. These numbers highl...
Understanding the basic concept of minimum wage is important for every single individual. We all live in this world together and it is obvious that there is an order. In order to continue our lives and afford our basic needs, we all need to work and gain wealth. As the old adage says ‘‘There ain’t a such a thing as a free lunch.’’ We need to give up on something that we like to get something else that we like. That’s why, every single individual in the society face trade-offs. However, people have different status. Some people work as employees and some work as employers. In that case of minimum wage the trade off is between employees and employers. Employees work for employers in order to gain money and afford their minimal living expenses whereas employers give up on their money and pay for employees because employers take care of their need of labor. Employers pay for their workers who we call employees and employees gain hourly money. The calculated minimum money that they gain in an hour base called minimum wages. Besides, there is this cycle that everyone actually works
Working families often cannot pay their rent, or sometimes food. According to an article in The Bill Moyers & Company “Three Steps We Can Take to Solve Poverty, From Someone Who Knows Firsthand” by Tianna Turner, U.S. government should give good tax breaks for companies that provide secure jobs, encourage them to have paid sick and family leave, and invest in affordable and high-quality child care. (Turner) It is true that companies that have tax breaks can utilize tax money to raise the surplus for living wages. Moreover, employees who have paid sick and family leave are more likely perform better in their work because they do not have to worry about the lost hours that result in lost pay. Childcare has always been neglected in the U.S. for a very long time. Many research show that kids in high-quality preschools have better graduation rate from high school, and they tend earn more as adults. If the U.S. childcare system is fix, the parents will have more time to focus on their job, and the overall quality of U.S. citizen will change
There are 15 million more people living in poverty than in the year 2000. Moreover, America has become a low-wage nation. The median paying job in the country now pays about $35,000 a year for a full-time job. It is barely more than it paid in 1973. With the salary being $35,000 it has people in America living in poverty because that amount of salary isn’t even enough to even live in a one bedroom house. It maybe is enough for one person, but for a person who has a family, it sure isn’t. In most cases in America, many families don’t have both parents. Single mothers were and are in trouble, with a poverty rate in excess of 40 percent. With this being said single mothers are the ones who are being affected and who are one of the cases that live in poverty. They live in poverty due to being the only ones that are bringing money into the households and with their salary being $35,000 is not enough to provide for themselves along with their children. Family structure plays a big role in poverty. “The poverty of single mothers with children at home, of all races, is the highest among demographic groups, higher than any minority or age group.” states Edelman, Peter. (2014). During the great recession when many single mothers were living off of food stamps and they soon destroyed the legal rights of benefits the Food stamp
According to familiesusa.org the poverty line is a single individual who lives alone with no dependents making $11,490 a year. The annual salary goes up by $4,020 for each person you add to the household. Minimum wage is mainly used for part-time jobs, and part-time jobs are not meant to support a family full-time. These jobs are meant for teenagers or people who have others to rely on for income. People who live on minimum wage typically live alone and can support themselves. If a woman has a dependent child she either is receiving additional monetary compensation through ch...
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.
The minimum wage today has a lot of issues; some people say it is not enough to live comfortably. Many agree that there needs to be an increase in minimum wages and by doing that it can help with our issues of poverty. Statistics show that a worker who is full time and earning minimum wage makes only $15,080 a year, which is under the federal poverty line for a family of two. (Gitis, 2013) The problem with that is $15,080 is not a sufficient amount that a person can live and grow on. “A family of two can consist of a mother and son or daughter, father and son or ...
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,
The definition of Minimum Wage is “an amount of money that is the least amount of money per hour that workers must be paid according to the law” (Minimum wage). Minimum wage, like other laws, are used to keep the economy in line. Minimum wage laws were invented in Australia and New Zealand with the purpose of guaranteeing a minimum standard of living for unskilled workers. (Linda Gorman) Minimum wage puts a price on the services one offers. Many different principles can be used to explain Minimum wage and explore the different aspects of it. Including what minimum wage does for our economy and the current status of it.
getting harder and harder as the cost of living keeps rising. While the cost of education, housing, groceries, healthcare, and utilities continuing to cost more, the American worker is scrambling to make ends meet on low wage incomes. Marco Rubio, author, politician, and attorney of law reveals, “Today the current federal minimum wage is $7.25 a hour, and has not been raised in seven years. In reality, a person working full time at a hourly wage of $7.25 will make about $14,000 a year”. Given that, the federal government deemed that the poverty line is anyone who makes less that 17,000 a year. Imagine supporting a family on those figures. Since it is apparent that the current minimum wage earner can not make enough money to support themselves, let alone a family, the minimum wage needs to be raised.
In America, low wage workers are experiencing difficulty maintaining a roof over their heads, putting food in their mouths, and providing for their families (Briana, 2016). Many of these workers are working at least two or three-part time jobs, or working full time at low-wage paying jobs. However, working fulltime or having two or three part-time jobs, still isn’t enough
A person working at minimum wage will only make about $10,700 a year. When rent, groceries, bills and gas are all added up, it appears to be a nearly impossible task to keep a family afloat. But working 40 hours a week at $5.15 an hour, one makes less than $206 a week after taxes. Making $206/week, one brings home about $824/month. Adding 17 gallons of gas at $2.20 a gallon in a car; the cost ends up to be about $38 a week, $152/month. The gas and electricity bill about $120, $50 for cable, $147 for property taxes, $45 for the telephone bill, $25 for water, and $42 for house insurance. All this totals about $580 (Abrams, H). Making it difficult to afford cable, and make the smallest payment possible on all the bills causing one to slip into debt. This is reality for many of the people in the United States. At the current minimum wage level, a full time, year round minimum wage worker in 2005 will earn $5,378 less than the $16,090 needed to lift a family of three out of poverty (Minimum).
Minimum wage is the lowest hourly pay employers are legally able to pay their workers. In United States there is huge debate on whether or not to raise the current minimum wage rates from seven dollars and twenty five cents per hour. States are leading push to increase the minimum wage by Democrats who appeal to working class Americans. Congress want to increase minimum wages above seven dollars and twenty five cents. The issues of whether to raise the minimum wage or not.