At this rate, a full time employee would earn an annual salary of $15,080, meaning that a family of two people, for example a single working mother with one child, working a full time minimum wage job, would sit below the federal poverty line of $15,730 for two people (2014 Poverty Guidelines). While it is true that there are tax breaks such as those for children, and the Earned Income Tax that exist to help such people living in poverty, the fact exists that the wages in the US have not kept up with inflation and the cost of living. While the value of the federal minimum wage has risen 21% since 1990, the cost of living itself has risen 67% (Gilson). Opponents are quick to argue that only unskilled workers are paid minimum wag... ... middle of paper ... ...4. Lowery, Wesley.
In the end increasing minimum wage would result in some people being let go, for the reason, businesses can't afford paying them minimum wage anymore. The people, who are for raising the minimum wage, are people who think that the reason for poverty is because of the minimum wage not being high enough. The first standard minimum wage is formed under the "Fair Labor Standards Act of 1938, the nationwide minimum wage was designed to lift millions of American workers out of poverty and to stimulate the economy"(Wittner). Today the people that are in favor of raising minimum wage believe that there should be another "Fair Labor Standards Act" to raise the national minimum wage to ten dollars and seventy-fo... ... middle of paper ... ...e, but in the end it is up to the states and government to increase minimum wage across the U.S. So just think about what would be the best option for our country, and support that choice because the argument for increasing minimum wage has been going on for a long time and will keep going on into the future.
While raising the minimum wage is done with good intentions, critics argue that a higher minimum wage will harm those it is actually trying to help. Raising the minimum wage, while a controversial issue, will have an overall economic impact that reaches not only minimum wage workers, but also to small businesses and to the prices of commodities. There is nothing new about raising minimum wage. Congress has raised the minimum wage five times over the past four decades alone in an effort to keep minimum wage up-to-date. Yet, inequality between workers has risen since the last decades of the 20th century (Parks 701).
Recently President Obama, because of the lack of effort and action by congress, has used executive action to implement the raising of the federal minimum wage to $10.10 an hour for new federal contracts, effective 2015. This, naturally, has brought out commentary, studies that support and oppose this, as well as predictions that are totally opposite of each other. (Davis, S.) The non-partisan Congressional Budget Office (CBO) examined the impact of raising the minimum wage to two levels, $9.00 and $10.00 an hour. On February 18, 2013 the CBO report concluded that at $9.00 300,000 workers’ wages would rise over the poverty line; however 100,000 jobs would be eliminated by employers to maintain profitability. The impact of a $10.10 an hour minimum wage on these numbers would be 900,000 workers moving above the poverty line while 500,000 jobs would be eliminated.
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. In the 2013 State of the Union, President Obama proposed raising the minimum wage from the current $7.25 to $9.00 by 2015. This has caused arguments between the rich, small businesses, minimum wage workers, and the unemployed because it affects each of them differently. Obama’s plan is to bind the minimum wage to the cost of living, which ensures that minimum wage goes up with inflation.
The amount would be increased to the amount of $10.10 gradually over the years until 2016 . Should the US increase the federal minimum wage to the amount of $10.10 in all states? “Nobody who works full time should be raising a family in poverty,” President Obama states. Many other people agree that any American working full time should not live below the poverty line. A minimum wage increase would decrease the national poverty levels substantially, with roughly 900,000 people lifted out of poverty.
Retrieved May 2, 2014, from http://www.ncsl.org/research/labor-and- employment/state-minimum-wage- chart.aspx Unemployment Rates for States Annual Average Rankings. (n.d.). Unemployment Rates for States Annual Average Rankings. Retrieved May 2, 2014, from http://www.dlt.ri.gov/lmi/laus/us/annavg.htm
The same scenario would reoccur just as it did when the minimum wage was raised before: jobs would be lost. Prices would rise greatly, citizens would lose jobs, and more people will become reliant upon the government if the minimum wage is increased. None of these things are good for an economy, especially one that is already struggling. The consequences of raising the minimum wage rate are very severe.
"Los Angeles lawmakers Tuesday voted to boost the minimum wage to $15 an hour by 2020, the largest city to try to help its lowest-paid workers survive amid the nation's growing income inequality." -- Michael Winter, USA TODAY May 19, 2015 Understanding the potential of an increase in today’s minimum wage is the key to understanding the above statement. As a financial mechanism in American society, the minimum wage has helped to sustain generations of workers. Yet, there are two sides to the debate over minimum wage increases. One side—the proponents—feel strongly that low-income workers need some incentive to earn a sufficient living.
(2013, June 25). Currently now there is a debate to raise th... ... middle of paper ... ... Works Cited • What is Minimum Wage: Its History and Effects on the Economy. The Heritage Foundation. Retrieved April 20, 2014, from http://www.heritage.org/research/testimony/2013/06/what-is-minimum-wage-its-history-and-effects-on-the-economy • U.S. Department of Labor - Wage and Hour Division (WHD) - Minimum Wage. (n.d.).