A Marxist Take on Tim Worstall’s “The Absurdity of a $15 Minimum Wage” One of the most prominent topics in current economics is whether the minimum wage should rise or remain the same as it has for over six years. Many middle and lower class Americans believe that a minimum wage of $7.25 is unethical because it is not a livable minimum wage; a standard workweek of forty hours at a wage of $7.25 per hour is not enough to pay the rent for most citizens of the United States. In 2013, there was a push to raise the minimum wage to $10.10, which was backed by even President Barack Obama, but such efforts to raise the wage were not enough. Within the past two years, the interest in raising the minimum wage to a “livable wage” has only grown. Tim …show more content…
If Worstall were correct in his analysis of the effects of a minimum wage increase, this would only prove to Karl Marx how ineffective capitalism is as an economic system. If Worstall is correct, we are left with a lose-lose situation with two options; the minimum wage can remain the same, causing many workers to struggle to survive, or if the wage is increased, many of those employed will lose their jobs due to capitalists’ willingness to only pay the bare minimum that they must for their workers. In Karl Marx’s “Wages of Labour”, he states “the lowest and only necessary wage rate is that providing for the subsistence of the worker for the duration of his work and as much more as is necessary for him to support a family and for the race of labourers not to die out.” In this statement Marx is shedding light on the fact that the capitalist is only going to pay their workers as much as it takes to live and make it back for the next workday. One could argue that in keeping the minimum wage at such an unlivable rate, present day capitalists aren’t even upholding the standard of “providing for the subsistence of the worker for the duration of his work” and in doing so are harming their workers, even when they’re employed. Thus, Marx would claim that if Worstall’s …show more content…
If increasing the minimum wage were to have a positive effect on the economy and the workers, it would only prolong the economic system of capitalism, further delaying Marx’s end goal of a communist economy. “The ordinary wage…is the lowest compatible with common humanity, that is, with a cattle-like existence,” Marx claims within Wages of Labour. He then continues, “the raising of wages gives rise to overwork among the workers. The more they wish to earn, the more they must sacrifice their time and carry out slave-labour, completely losing all their freedom, in the service of greed.” (Marx “Wages…”). Many would argue that in giving workers more than double what they are currently earning at minimum wage, we are placing more money into the workers hands as well as taking money out of the hands of the capitalists, which could be seen as a win-win. What many don’t come to terms with is the fact that even when the minimum wage is doubled, it does not serve as a legitimate redistribution of wealth. “Marx places a classless society over a redistribution of wealth [in importance]” claims Nordenhaug. Thus, we can assume that even if the raise of the minimum wage could serve as a partial redistribution of wealth, Marx would claim that once again, the movement is not pushing far enough, and a legitimate revolution is still
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.
Over the years, as capitalism dominates the economic development of the modern world, Karl Marx and his analysis into the faults of capitalism have been largely discarded by economists. However, his prediction in the fall of wages and the increasing misery, although unparallel to the actual events taking place, is not without its merits. Contrary to the belief that capitalism is the final solution and the infinite last stage of economic and social evolution, through the experience of working men or women, we are reminded often that the system isn’t all that perfect. The article published in 1960 by Thomas Sowell, titled Marx’s “Increasing Misery” Doctrine, although far from being considered a recent piece, reminds us through a series of reinstatements of Marx’s work, that his analysis into the effects of capitalistic progression in relations to the well being of the working people cannot go unheard because of the negative implications of relative misery.
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)
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
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
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
In recent years the minimum wage has been a heated topic. People want to hike it up to 15 dollars an hour which they call a living wage, while others just want to keep it the same. There are also others that suggest to bring the minimum wage to around $10.78 an hour, which should be around the minimum wage now if we account for inflation from the 1960’s. I agree with that to a certain point. We as a nation need to bring up the minimum wage only up to ten dollars so that less people are living in poverty, and not any higher so that states with smaller economies don 't crash and burn.
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 ...
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.
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 $0.25. In the United States the federal minimum wage has been raised 22 times since 1938 by a significant amount due to changes in the economy. Minimum wage was created to help America in poverty and consumer power purchasing, but studies have shown that minimum wage increases do not reduce poverty. By increasing the minimum wage, it “will lift some families out of poverty, while other low-skilled workers may lose their jobs, which reduces their income and drops their families into poverty” (Wilson 4). When increasing minimum wage low-skilled, workers living in poor families,
The minimum wage being too low has been a public issue in America for generations. Basically, the debate includes two different opinions. Firstly, people who want to raise the minimum wage, and second, people who would rather is stay the same. The overwhelming majority of liberals are on the side that favors a raise. Additionally, a somewhat smaller proportion of conservatives favor the change as well, but for different reasons. The liberal opinion on raising the minimum wage is based on the idea that putting more money in the people’s pockets, will stimulate the economy, and decrease poverty. The problem that conservatives and liberals alike have with this, is that a few direct consequences are proven to apply when raising wages. Some proposed consequences include unemployment, inflation, and unfairness to higher educated people. Another main point is that raising the minimum wage is thought to helps small business by increasing worker satisfaction. This issue of minimum wage has become increasingly popular and important in current times, as president Obama has proposed the idea of raising the minimum wage of contract workers to 10.10$ per hour (about a 30% increase from the current 7.25$ per hour minimum wage). A large number of people consider this wage hike unnecessary due to the fact that today’s value of minimum is higher than it has ever been since the 80’s, and because the wage hike comes at too high of a cost. All things considered, the issue of raising minimum wage is not a battle of political parties and their agendas, its really a debate between everyone.
For many people in the United States, life is no more than a regular work cycle. Members of working class usually have a High School diploma and may work in a low skilled occupation or manual labor. Most of the enjoying age of this people is spent in working, as they don’t want their new once to have a life they struggling through. Therefore, this essay will argue that minimum wage should be increased federally to $15/hour by 2017. Firstly, if taxes touches the sky, why should the minimum wage be on the ground? Increasing minimum wages would also create new opportunities for education as the students wouldn’t have to work crazy hours. Likewise, many couples won’t have to work multiple jobs in order to manage the household. Lastly, it will lift
Presently, workers in the fast food and minimum wage jobs seek respect and an increase in wages as it is a sector of the food industry that is underrepresented by unions. As cost of living increases in cities nationwide and the government subsidizes underpaid employees with welfare funds, organizations such as Real Food Real Workers and the Fight for $15 are demanding a raise in the minimum wage, particularly for food workers. Similarly to the food workers at UNC Chapel Hill, many minimum wage workers in the fast food industry are women and minorities, sectors of the labor pool already marginalized by wage disparity. The Fight for 15 movement has recently gained momentum in raising the minimum wage to $15 in California, New York, Seattle and the District of Columbia, and this year Arizona, Colorado, Maine, and Washington state voted to increase the minimum wage as well. In the 21 states where the minimum wage is still as low as $7.25, s minimum wage increase movement should partner with other organizations from outside labor unions such as women 's rights organizations and organizations similar to the BSM, including mass participation of solidarity with college campuses, to make a substantial statement about their work
Market economies, as a whole, inherently and inevitably lead to poverty and a large class disparity. In a capitalist society, the ones who supply labor, the ones who work the hardest, are the ones who are paid the least. The owners, who are already rich, receive most of the profit and accumulate large masses of wealth. “Under capitalism workers receive only a small fraction of the wealth that they alone produce, while the lion’s share goes to the capitalist owners and to the bankers, landlords, insurance companies, lawyers, politicians, and all the other parasites who live off the back of labor and perform no useful work.” (SLP). Thus laborers are paid much less than the value of the labor that they contribute. As Karl Marx said, this is stealing, or exploitation of labor. The wages for...