Minimum Wage And The Wage

2449 Words10 Pages
Introduction Minimum wage was established state wide in 1938 by Franklin Delano Roosevelt; at that time it was only 25 cents which is equivalent to 4 dollars in today’s world. It was established as part of the Fair Labor Standards Act which covered youth, government and overtime pay. Massachusetts was actually the first state before Franklin’s statewide acknowledgement, and it only covered woman and children without overtime. There are lot of issues with minimum wage now such as setting a statewide minimum wage to $10.10, which does not benefit places were living is expensive such as in New York. It leads to an imbalance in different states’ economies, and the government setting price controls in wage has some issues. A minimum wage reformation came during the 1960s and 1970s when the retail agricultural and services industries became covered under the minimum wage. By doing this the minimum wage coverage percentage changed from 20 to more than 90 percent in 1975 (Gitis, 2013). This change expanded the net of people who can benefit from the minimum wage. The income inequality during this time was at a low which made the American economy stronger than today. 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 ... ... middle of paper ... ...g on the changes of cost of living to prevent there becoming a wage floor. My argument for implementing the policy of factoring price differences from state to state when setting minimum wages is that it benefits a wide net of people. Factoring price differences from state to state when setting minimum wages can help change our economy and provide fairness in society in many ways. One way is by making minimum wage more efficient and compatible with the buying power of the state. It also takes into account each individual state 's prices and not just one nations prices on products. This gives a more in-depth view into what the minimum wage should be for each state. This policy 's impact on the economy and on justice grounds is that it gives every state and their workers, a fair chance to make a living and the ability to afford the products that come into the state.

More about Minimum Wage And The Wage

Open Document