Minimum Wage And Unemployment Analysis

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Anyone who’s ever worked for a company, or worked a job is all too familiar with bargaining for salary. Employees are usually unsure of if they’re asking for too much, or asking for too little. Unbeknownst to them, most of them are already making too little. In this case, one could use minimum wage workers as an example. They work unrealistic hours to pay to support themselves while still not earning a living salary. The last minimum wage raise was in 2007, and it hasn’t budged since then. Since then, the economy has gone through multiple inflations and yet the minimum wage has not yet adjusted to match it. Although many opposing sides disagree because they think that it will raise taxes, the minimum wage should be increased to adjust to inflation, …show more content…

Unemployment has reached its lowest point in seven years while the hourly wages for all workers fell by 4% from 2009 to 2014, but the low wage workers were hit hardest by an average of a 5.7% decrease in hourly wages. While 1.3 million Americans earn the current federal minimum of 7.25 while 1.7 million workers work with wages below the federal minimum (Alper).This behavior is creating unlivable wages and is not benefiting the middle class at all, as some may believe. The only ones benefiting economically are the billionaires and millionaires of the upper class, as they are gaining the most from low wages as many company CEOs refuse to raise their hourly wages because it would cause the company to spend more money on the employees. Regarding women and women of color, they will significantly benefit from an increase in the minimum wage. The minimum wage still does not factor in the wage gap, in which women make 75 cents to every dollar a man makes. The wage gap is still more complex than that, African American women get paid 64 cents to every man’s dollar and hispanic women make 56 cents to every man’s dollar, putting women of color at a further disadvantage if they are being paid with the wage gap AND working at a low wage job (NWLC) .More than half of African- American workers and almost 60% of Latino workers in the U.S make less than $15 per hour, and women make up 55% of workers making below $15 hourly wage ( Alper) . …show more content…

Contrary to popular belief, most minimum wage workers are 30 or above with families to support, not entry level teenagers as some politicians believe. The American dream isn’t functioning when the middle class is shrinking, instead of growing (Prince). “If one works 40 hours a week, every week at 7.25 an hour that means an annual income of $15,080, with no sick days and no time off…. That’s $15,080 a year, or $13,926 after FICA deductions. Imagine paying market rates for rent in the D.C area, where a tiny apartment might take up two- thirds of the income, and require an hour or longer commute to get into the city, with subway costs taking up an additional 10% or more.”(Ornstein). The statistics show how the low wage workers live. With the added prices, like tax deductions and rent and transportation costs, there is not much money left for food and water, not to mention child care as the employees are working on average 40 hours a week. The low wage workers not only struggle to support themselves, but to support their families as well. In low wage families with single parents life always seems to be a struggle for survival and juggling the costs of necessities vs the meager paycheck the employees bring

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