Federal Minimum Wage

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Currently, living as an American citizen is often expensive and some struggle to even make it day to day because of the low-wages. The cost of living increases each year and federal minimum wage never adjusts with the inflation of prices. According to the U.S. Department of Bureau Labor Statistics, “Over 870,000 American workers earn $7.25 per hour for the federal minimum wage” (BLS, 2016). The current wage in 2016 remains at $7.25 per hour in the United States. The Fair Labor Standards Act (1938) was the foundation of how the establishment of minimum wage started. This law was passed by President Franklin D. Roosevelt and it explains that workers can work up to a maximum of 40-hours a week. Federal minimum wage is a salary that workers are …show more content…

There are 2.4 million children who depend on the income of these minimum wage workers. (pg. 1) This quote explains how federal minimum wage provide workers with an efficient way to have a basic standard of living. One advantage of raising the minimum wage is the increase of jobs. Job growth because of a raise in minimum wage could possibly minimize unemployment and allows opportunities for American workers that need a job. Whereas, minimum wage increasing helps the chances of families experience better job opportunities. Majority of businesses have difficulty budgeting their money and consequently, minimum wage allows business owners to innovate new jobs. Minimum wage should increase for business owners, so that a raise consumer buying power can occur. This means that the limit of a market or consumer can buy certain products, which benefits business owners. Economic recovery is another reason why higher wages support business owners. Berlatsky's (2012) mentions the …show more content…

Professor Joseph Sabia argues that raising the minimum wage can make small businesses would have to lay off workers (2012, pg.1). Even though it is valid that federal minimum wage could force businesses to lay off their workers, U.S. Senator Ted Kennedy argues that minimum wages history indicates no negative impact on employment or jobs (As cited in Sabia, 2012). Perhaps, businesses should reduce their top paying salaries to meet the regulations of new minimum wages. Minimum wage for businesses does not increase unemployment nor would it reduce job

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