In the United States there are over 1.6 million minimum wage workers. Fifty-three percent of minimum wage workers are high school, or college students, seventeen percent are the retired, and thirty percent being unskilled workers. Because the minimum wage is not enough for most people to live on, in 1994 local union leaders and activists have helped to pass more than 100 living wage ordinances. A living wage is designed to help low wage workers and their families to live above the poverty level They have decided on minimum wage on different things but they are looking to increase it since minimum wage workers that make up a family of three are making $5000 below the poverty line. There are some positive aspects to raising the minimum wage.
This standard is leaving 9 million Americans living far under 18,850 a year! “Currently, full-time, full-year work at the federal minimum wage of 5.15$ and hour yields an annual income of 10,300$. If the minimum wage had kept pace with inflation since the late 1960s, as it had done in the previous two decades, its current level would be more than 7.50$ and hour, or 15,000$ a year” (The American Pros... ... middle of paper ... ... get an idea of what their low wages are creating for their employees. This project is going to require my engagement far longer than FYSE is going to last. Helping CCAG and the community is going to take much longer than one month to produce significant results.
Before other states jump on the $15 minimum-wage bandwagon, they might want to look at what's happening in Massachusetts — one of two states with a $10-an-hour minimum wage. Massachusetts increased the minimum wage from $8 to $9 at the start of 2015 and to $10 on the first day of 2016. The state is now mired in its longest stretch of net job losses since the recession, Labor Department data show. Minimum wage is the assured lowest amount of pay per hour that an employee can receive and it’s purpose is to make certain that employers are paying their workers fairly. The first minimum wage was created by Congress in 1938 as part of the Fair Labor Standards Act; it was twenty-five cents an hour.
Most people are in debt, in late 2005 “wage growth was shortchanged because 46 percent of the growth of total income in the corporate sector was distributed as corporate profits, far more than 20 percent in previous periods.”(24) Household income had fallen five years in a row and was 4 percent lower. The average wages of Americans are low. The growth of the American population is expanding very rapidly; the job count compared to population growth is almost unrealistic. Only one point nine percent more jobs have come up since the beginning of the last recession. The unemployment rate is four point six percent That means that a lot of people do not have jobs; the percent of people that have a job was one point three percent, So that means that more people are not working than people with a job.
The current minimum wage is impairing those who are doing their best to support themselves and if they have them, their families. Based off of studies and a 2010 census cost of living index, Benefits of Raising the Minimum wage, composed a setting of a life of individual trying to support a family on minimum wage. “The average worker, working two-hundred and fifty days, forty hours per week will earn about fourteen thousand five hundred dollars a year on minimum wage… The monthly expenditures don’t come even close to covering cost of living in most areas.” If the f... ... middle of paper ... ...ecause by increasing the minimum wage, you also increase the chance of consumer spending. With a higher minimum wage and people able to support and pay living expenses, they have more income to spend elsewhere. People tend to spend more if they have the money to do so, which contributes to the GDP, which helps kick start the economic recovery.
More citizens will resort to crime to provide for their families in times of great need. People will struggle even more to provide for their loved ones and resort to alternatives to provide for them. Even though increasing the minimum wage to $10.10 will help 900,000 people tremendously, It will severely devastate those citizens and their families who lose their job to help pay for the increased wages. This is not the first time that the federal minimum wage has been proposed to be increased. From 2007 to 2009, the minimum wage increased from $5.15 to $7.25, where is still ... ... middle of paper ... ...ect all Americans, those making minimum wage and those with salaried jobs making above the bare minimum.
He brings to our attention that 70 percent of the immigrants who arrive to America are young, strong and ready to work for a low amount of money. This means that the U.S. gets a new labor force without ever spending any funds into their education, wellbeing or health care and these same immigrants will be the ones who contribute 500 billion dollars into the economy within 20 years. As we know the U.S. economy is facing a dangerous crisis do to baby boomers who will soon be retiring and this will have a huge economic impact. As a result, immigrants will help sustain the American economy once the crisis worsens. The U.S. Chamber Of Commerce, says, “Under these circumstances, immigrants will play a critical role in replenishing the labor force and, therefore, the tax base.” Proving that immigrants do not drain the economy but actually contribute a great amount of funds and keep creating a moving economy.
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). Today the federal minimum wage is $5.15, but should be about $8.50 if Congress had adjusted it for inflation over the past 35 years.
Workers in the workforce were given a cut in hours and lowered weekly earnings. As the growth of wages goes down and the consumption growth increases it makes the economic recovery farther out of reach. The effects of the recession do not discriminate, everyone residing in the United States is affected by it in some way, and this is including people who are able to maintain working at their jobs. In 1967 year round workers earning minimum wage were paid just enough to raise a family of three above the poverty level. From 1981-1990 the cost of living went up by 48% while the minimum wage stayed $3.35 an hour.
As of July 24, 2009, the minimum wage in America is $7.25 an hour. A study by the National Coalition for the Homeless revealed that “a minimum wage worker would have to work 83 hours per week” to afford the rent of an average priced two-bedroom apartment and still be able to afford food, clothing, healthcare and other necessities (Molloy). It has not always been this way. In 1967 the minimum wage was the equivalent of $10.04 today and “a person working full-time at minimum wage earned enough to raise a family of three above the poverty line” (Molloy). While they would still be lower class, the family would have a roof over their heads and they would not starve.