When minimum wage was introduced in 1938, under the Fair Labor Standards Act, the purpose was to establish a standard wage that employers cannot decrease and to help alleviate poverty. In 1938 minimum wage was established as $0.25 an hour and as of 2009 minimum wage is established as $7.25 an hour. Although recently in the past few years many corporations have made raised their minimum wage to $9.00 and even up to $10.10. Now, much of society is pushing for an established minimum wage of $15.00 per hour by 2020. Whether or not to raise minimum wage has become a heated debate in congress as well as between businesses, individuals and even economists. Both for and against raising minimum wage have their pros and cons. While it may seem
A raise in the minimum wage is only a temporary solution to fixing the problems in the United States. The federal minimum wage was introduced in 1938, during the Great Depression, and has already been increased 22 times. There are already 19 states that pay their employees well over the federal minimum wage. The highest minimum wage in the United States is in Seattle, Washington, and is set at fifteen dollars an hour. Interestingly enough, if minimum wage followed inflation, then it would be set at $4.24 an hour, which means it is already $3.01 over that amount that it should technically be (James Sherk 2013). Continued increases of the minimum wage in the United States need to be stopped as it will result in devastating impacts on low-skilled
Raising the minimum wage will not help the economy The issue of whether or not to raise the minimum wage has been a subject that has been in the forefront both politically and socially as of late. A minimum wage is the lowest hourly rate of pay that employers must pay their workers and is mandated by the federal government. Raising the minimum wage would actually hurt the economy because doing so would do little to lower the poverty rate, would increase unemployment for less-skilled workers and result in higher prices for goods and services.
Raising the minimum will end up hurting Americans more than helping them. The people that are for raising minimum wage are people who believe that increasing minimum wage can help those people who are unskilled and need an income they can live on. Yet, raising minimum wage would do the opposite and make employers have to fire people who earn minimum wage, because they can't afford the higher wages. People need to realize that increasing the minimum wage would hurt people more than help them. 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.
Most people know what the minimum wage in their state is but they don’t actually know what minimum wage is. In Linda Gorman’s article “Minimum Wages” she explains that minimum wage is laws set legal minimums for the hourly wages paid to certain groups of worker. Minimum wage laws were invented in Australia and New Zealand to guarantee a standard living for all of the unskilled workers at the time. As Jonathan Grossman explains in his article “Fair Labor Standards Act of 1938: Maximum Struggle for a Minimum Wage,” President Roosevelt introduced minimum wage laws to the United States in 1938 in the Fair Labor Standard Acts of 1938. These laws were made to ban child labor, set a minimum hourly wage of 25 cents an hour, and give a maximum work
Raising the Minimum Wage helps the economy, if people make more money, they will spend more money, which benefits the encounter. Corporations need to take into account the idea that when wage is deducted from an employee, that employee is less willing to work and that can really affect the business. But if the employee is being paid a decent amount that is realistic for them, they are more willing to work for your business and will be a happy worker, which will be beneficial to your business. No one wants their business to have the image of abusing their employee’s. It can harm their business by the public viewing them as a company that doesn 't appreciate their workers. If the employee is being paid a decent amount, it could also lead to the employee willingly staying at your business and being committed to their work ethic.
Minimum wage should be increased because Parents that don't have degrees are struggling providing their families. People that have not gotten degrees because they could not afford them or have had families early and do not have the time or resources to go to school can not get a job that pays over minimum wage, most of the time. For instance, the employees that work on minimum wage in California have to work 130 hours a week to afford two bedrooms, this is the reason that the government supports the low income families. Raising it would help these people afford to support their families on their own. Also the minimum wage is not keeping up with inflation making it harder and harder for people to afford things, which is affecting the economy even more because people are not buying, or they will buy cheap things that are made somewhere else, which stimulates a different country's economy.
There are indeed risks of raising the minimum wage, but the rewards outweigh those risks, so the minimum wage should be raised. Some people who are against this may say ...“But other economists say raising the minimum wage actually hurts the very people it's designed to help: One of the basic laws of economics is that if you raise the price of something, there will be less demand for it. In this case, if you raise the price of workers, the demand for workers will decline. That could mean companies cutting the hours of employees, laying them off, or hiring fewer workers in the future.”... Yes, it could hurt the people it is designed to help, but different states have done this and found the opposite to be true. With America’s still fragile economy we need a boost, a helping hand; And this could be it. So next time you go down to vote on a mayor or maybe even the next president, remember that raising the minimum wage is a good thing, and you should be supporting
In fact, there’s numerous reasons why raising the federal minimum wage would be harmful to American businesses, workers, and consumers. For starters, if the minimum wage were to be raised, then companies would respond to the added payroll by laying off employees, including teenagers who are attempting to find a starting job (The Effects of a Minimum-Wage Increase on Employment and Family Income.). If companies choose to keep their employees, then they’re forced to either raise the prices of their products in one form or another, or they have to cut benefits to their workers (Sean Williams). Regardless of which way companies would choose to adapt to the new minimum wage, it wouldn’t be a good situation for
Overall, an increase in the minimum wage could bring many benefits to Americans such as families being able to afford education, healthcare, food, and other necessities without having to choose between resources. The workers incomes are not sufficient to cover a family's needs, so an increase could raise a family's income, create more economic equality, and help consumer spending. The economy could improve if the wages increased because families would not be torn between where their money must be spent. An increase in the minimum wage could create a thriving economy if the wealth was distributed equally to help Americans in need.