The majority of America would like to see the minimum wage raise from $7.25 an hour, to $10.10 which is almost a forty percent increase in hourly rate. A decision this big that will affect the entire country must be intensively discussed and debated before it is put into action. In an economy consisting of unemployment rates at their highest in decades, one would think that this would be a good action to take, but the consequences of doing so show otherwise. President Obama and the Democratic party are lead supporters of the idea to raise the minimum wage to help out those families living below the poverty line, but it will do as much harm as it will do good. "President Obama's call to raise the federal minimum wage could help lift 900,000 workers out of poverty, but at a cost of as many as 500,000 jobs" (Davis).
The minimum wage employers will have money to spend , and in turn, the... ... middle of paper ... ...l salon is nearly two times the average for all workers. To sum up, since many states have different set of rules and laws, they also differ from the minimum wages. Citizens have different opinions weather the minimum wage should be raised or not. The minimum wage has dramatically been changing in the past decades. It will also continue to rise up depending on the states economy.
Reasons for Minimum Wage Worker’s Tough Lives In 1938, federal minimum wage legislation became effective for the first time when the Fair Labor Standards Act passed (Sidey 573). After sixty-seven years, today, the minimum wage, which was originally set to make sure that working people could support themselves and their family, increased twenty times (Sidey 573). Nevertheless, the low-wage workers have never gotten rid of the hardship in their lives. Two main reasons cause the current situation. The increasing renting prices and the increasing rate of health care, which exceeds low-wage workers’ real income by quite a lot, make their lives tough all the time.
Economic problems are considering being controversial. Many economists stated that whenever the minimum wage is above the market equilibrium, it will cause lots of people to lose their jobs, especially for those youth generations or unskilled people who earn their lives with minimum wages and more than average 10 hours daily working time. However according to other economists, there seems to be no direct evidence to prove that the increase of minimum wage will affect any of the people and in addition of that the increase of the minimum wage even will cause an increase in employment. A... ... middle of paper ... ...fast food industries workers are always the closest to be affected. In conclusion, government increases the minimum wage in order to help those people who live in a lower living condition.
Opponents of this matter may argue that increased labor costs lower overall profit for businesses (Mejeur 15). However, this argument overlooks the outweighing factor of the workers’ new potenti... ... middle of paper ... ...t jobs is completely negated and the benefits of raising millions out of poverty and workers receiving generous pay increases far exceed any drawbacks. An increase of the minimum wage is the ideal step in preserving a dynamic yet economically sound society. Works Cited Dickinson, Tim. "The Minimum Wage War."
Since the Federal minimum wage is already a high rate, it would be pointless to make it even higher when our country is already in debt. It is true that people with minimum wage jobs will have more money to spend on more things. It will help low income family’s pay some bills and not have to have a stressful job. However, $10.10 an hour is still not enough money to support a family or afford house or car payments as well as electric and water bills. “A 1997 National bureau of economic research study estimated that the federal minimum wage hike of 1996-1997 actually increased the number of poor families by 4.5%”(Henderson 54).
Poverty in the United States will keep increasing if Congress does not raise the minimum wage as living expenses continue to rise. With expenses such rent and food, millions of people in the US are struggling to afford the necessities to keep them alive. In order to help the working and middle class, President Barack Obama wants Congress to raise the minimum wage from $7.25 an hour to $9.00 an hour by the end of 2015. Unfortunately, CEO’s and the Republican Party in the US are against raising the minimum wage because it will cut into the companies’ profits and claim that it will cause job losses. There are several benefits in raising the minimum wage, as it reduces the number of people in poverty which in turn reduces the government expenditures to support people living in poverty.
Jobs and the economy are directly related, so if the economy is steadily growing, then the amount of jobs will too. Increasing minimum wage would have a major impact on job availability. In fact, a chart published by the Review of Economics and Statistics shown in the Huffington Post explains that between the years of 1991 and 2006, the rate of job growth has mimicked the increase and decrease of minimum wage. Another study done by the National Emplo... ... middle of paper ... ... work and it is Congress’s moral obligation to raise it to help the millions of people who, despite their hard work, are still in poverty. Works Cited http://www.huffingtonpost.com/2013/11/07/obama-minimum-wage_n_4235965.html http://www.salary.com/increasing-the-minimum-wage-pros-cons/ http://nelpaction.wordpress.com/2013/07/24/new-poll-overwhelming-majority-of-americans-view-minimum-wage-increase-as-important-priority-for-congress-over-next-year/ http://www.epi.org/publication/bp357-federal-minimum-wage-increase/ http://www.newyorker.com/talk/financial/2013/08/12/130812ta_talk_surowiecki http://www.huffingtonpost.com/lawrence-wittner/the-minimum-wage-should-b_b_4251211.html http://www.huffingtonpost.com/2014/01/14/minimum-wage-raise-proof_n_4597721.html http://www.huffingtonpost.com/2014/01/14/economists-minimum-wage_n_4594922.html?utm_hp_ref=business
At the federal level, Obama has conduct support to raising minimum wages multiply times. The president took it upon himself to raise wages for workers on all new federal contract working for 10.10 dollars are higher. Raising minimum wages will help a lot of business save a lot of workers and help people make their family happy again. Normally nowadays a person that work full time on a minimum wage job they salary for the year is $14,500 a year which leaves a lot of family struggling at the end of the day. A family of 4 living on minimum wage is more than living in
"The minimum wage has not kept pace with rising costs," Governor Brown, said in a statement. "This legislation is overdue and will help families that are struggling in this harsh economy." An increase in minimum wage would raise the standard of living for those living below the poverty line, working two or more jobs, and/or single parents. The minimum wage hasn't kept up with the rising costs of living putting more people into poverty unable to pay for everyday items. Every year that minimum wage remains the same it leaves minimum-wage workers with a paycheck that cannot buy as much as it did in years past.