The Fair Labor Standards Act; also known as FLSA, was signed in 1938 by Franklin D. Roosevelt. This created a way so all workers were making an entry wage, that helped people out of poverty. When it was signed, the minimum wage was 25 cents an hour, and workers could only work 44 hours a week. Since then, the minimum wage has increased due to the price of living, and is currently at $7.75 (U.S Department and Labor). However, many states have passed laws raising the wage, therefore the state minimum wage is above the federal wage. Raising the minimum wage is ideal to the United States, because it can decrease poverty rates, create new jobs, and likely increase employee productivity.
Businesses that sale a proportional amount of their goods to people that live on minimum wage, would likely see an increase in sale. With the increment in sales businesses are likely to hire more people to keep up with the sales (Minimum Wage, Pros & Cons…). As of April 2014 the unemployment rate has dropped .4% making it an average of 6.3%; with new jobs, the unemployment rate can decrease even further (Benefits of Raising…). In result, when people have money they like to spend or invest, creating a more active economic market. This can cause the national debt to decrease.
When people receive incentives, such as more money, they tend to work harder. This will likely be the case if the government is to raise the federal minimum wage. Adults are like children, in a matter of speaking, for instance when a child gets an A+ and you reward the said child, he will likely work harder in school for the additional praise he will receive. Same goes for adults, if an adult receives a raise in pay, their mood is likely to be more upbeat, causing work to be done ...
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...s For and Against, Advantages & Disadvantages)." BalancedPolitics.org - Minimum Wage (Pros & Cons, Arguments For and Against, Advantages & Disadvantages). Web. 8 May 2014. .
"Benefits of Raising the Minimum Wage - Time For A Raise." Time For A Raise. Web. 8 May 2014. .
Berman, Jillian. "$10.10 Minimum Wage Would Actually Create New Jobs: Study." The Huffington Post. TheHuffingtonPost.com, 19 Dec. 2013. Web. 8 May 2014. .
"History and Debate of Minimum Wage." Minimum Wage Debate. Web. 9 May 2014. .
"Minimum Wage - Wage and Hour Division (WHD) - U.S. Department of Labor." Minimum Wage - Wage and Hour Division (WHD) - U.S. Department of Labor. Web. 9 May 2014. .
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The Fair Labor Standards Act (FLSA) is administered by the United States Department of Labor Wage and Hour Division. The Act regulates child labor, wages, and hours, it also requires employers to keep proper records and which to maintain (Bennett Alexander, 2004). The Act, now law requires employers to pay employees at the lower end of the pay scale, a certain amount which maintains a minimum standard of living and out of poverty (Bennett Alexander, 2004). That is the law and theory, in actuality the law has caused poverty in certain areas of the employment theatre, keeping those who are at the low end of the pay scale; below the reach of higher paying jobs.
Minimum wage is a topic that has been popping up since the 1980s. From whether we should lower it, or even raise it, but now in the 2000s minimum wage has been the center of attention more than ever. There are two sides to this topic of minimum wage; whether it creates more jobs or does not create jobs. Those who argue that raising minimum wage will create more jobs will have a rebuttal which is that it does not only cause the loss of jobs but that it would make things much worse and vice versa for those arguing raising minimum wage will cause loss of jobs. There will be two authors representing opposite views, Nicholas Johnson supporting minimum wage will not cost jobs with his article “ Evidence Shows Raising Minimum Wage Hasn’t Cost Jobs”
"U.S. Department of Labor - Wage and Hour Division (WHD) - Minimum Wage." U.S. Department of Labor. U.S. Department of Labor, n.d. Web. 08 Feb. 2014.
Raising the minimum wage to $15 an hour has been extensively debated over the last year or so. Minimum wage is the undermost wage allowed by law to be given to an employee for their services. Introduced in 1939, its purpose was to stabilize the economy, which was healing from the Great Depression. Most importantly, it was designed to protect the health and welling-being of employees. Currently, the Federal Government 's minimum is $7.25 per hour ($14,500 per year). The ones in favor of the increase are saying that it used to be a living wage; however, now it is not and it now needs to be line with changes to the cost of living. In addition, an increase in minimum wage can increase the productivity and decrease income inequality and poverty. On the other spectrum, the ones who are against the increase are saying that the increased labor cost will drive up unemployment, affect small businesses negatively, and cause other workers from different
"Handy Reference Guide." ESA/WHD: Wage Hour Division Home Page. U.S. Department of Labor. 21 April 2001 .
Minimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N. Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw 6-1b). Currently, the minimum wage in the United States is $7.25 per hour. For many years politicians and citizens have argued on what should be the minimum wage that would benefit the economy and society in general. A minimum wage was first established in 1938 to increase the standard of living of lower class workers. To discuss what is better for the country and its citizens, people have to understand what is a minimum wage and what are its effects.
The Fair Labor Standards Act The Fair Labor Standards Act (FLSA) was passed by Congress on June 25th, 1938. The main objective of the act was to eliminate “labor conditions detrimental to the maintenance of the minimum standards of living necessary for health, efficiency and well-being of workers,”[1] who engaged directly or indirectly in interstate commerce, including those involved in production of goods bound for such commerce. A major provision of the act established a maximum work week and minimum wage. Initially, the minimum wage was $0.25 per hour, along with a maximum workweek of 44 hours for the first year, 42 for the second year and 40 thereafter. Minimum wages of $0.25 per hour were established for the first year, $0.30 for the second year, and $0.40 over a period of the next six years.
U.S. Department of Labor. 2014. “History of Federal Minimum Wage Rates Under the Fair Labor
Minimum wage has been around for ages. Minimum wage employment was a temporary condition for people earning little payment until they moved on to a better paying job. These jobs helped build résumés, experiences, and skills for a better career. It has become the easiest way for people to receive easy pay. As years went on that idea began to demolish into a job that many families can get to survive and pay for their expenses. There have been many arguments going on, "Should minimum wage be raised or should it be lowered or eliminated altogether?" This action has its pros and cons. It can benefit many families as living cost has gone up, price for education is rising, and college students are in huge debts. It may increase poverty, but those
U.S. Department of Labor - Wage and Hour Division (WHD) - Minimum Wage. (n.d.). U.S. Department of Labor - Wage and Hour Division (WHD) - Minimum Wage. Retrieved April 20, 2014, from http://www.dol.gov/whd/minwage/chart.htm
Increasing minimum wage to $10.10 an hour will boost the economy because if people are earning more money, then they will spend more money (Shemkus). In a study done by the Federal Reserve Bank of Chicago, minimum wage workers who received a wage that included an extra dollar per hour created an average of $2,800 in new consumer spending the next year (Berman and Scheller). That is a significant amount of money from such a tiny change, and if enough people were given just a one dollar raise in salary, then that would mean millions of dollars in new consumer spending, so raising salary $2.85 would mean even more money for the economy.
"Bill Gates: Raising Minimum Wage Can Destroy Jobs." The Foundry Conservative Policy News from The Heritage Foundation. N.p., n.d. Web. 14 Mar. 2014.
It is very difficult to live in America if you are living off of minimum wage, and many Americans are living off of it today. Raising minimum wages has its benefits like gaining more money to live better, but people do not see the down side of the increases in wages. With the increase in minimum wage, it also causes the cost of living to increase. How can this help the economy or help people? Minimum wages in America should not be increased because it will cause cost of living to increase, reduce employment, and cause businesses to lose money and workers.
On the 1st of April 1999, the National Minimum Wage (NMW) was introduced in the UK at a rate of £3.60 per hour for workers aged 21 and older, and at a rate of £3.00 for workers aged 18-21. Since then, it has grown steadily to reach a rate of £6.31 per hour today. The NMW is “the minimum pay per hour that almost all workers are entitled to by law” (www.gov.uk). In 1999, 1.9 million people were paid less than £3.60, sometimes even below the Living Wage due to the dismantling of unions by the Thatcher government. The idea of a minimum wage then came up, supported by the Labour Party, in order to reduce the increasing poverty and to prevent low wages workers from being exploited by their employers. The Conservative Party, supported by employers, was strongly opposed to this project, arguing that a minimum wage will damage the economy and create poverty due to higher unemployment levels. So, how does the NMW really affect poverty and employment in the UK?
Bernstein, Jared. “Would Raising the Minimum Wage Harm the Economy?” The CQ Researcher 16 Dec. 2005:1069.