The Minimum Wage Debate
Minimum wage has obviously changed over the decades. From $0.25 in 1938 to currently $7.25 for all covered, nonexempt workers since 2009. In the reasonable eye, one would think working in a job that only allows them to receive minimum wage will be motivation to go back to school and get a better paying job. But what if minimum wage increased? Making the average minimum wage amount $9.00 to even $10.00? The average amount of minimum wage in some states will increase starting January 4, 2014. In advanced; this is going to cause controversy between the people and governors of the states that passed this particular bill. Since 1938; October 28 to be exact, uprising Supreme Court Justice Hugo Black created the first successful national minimum wage bill. This bill guaranteed a minimum wage that provided; overtime pay and protection for children from unsafe labor. This was known as the Fair Labor Standards Act (FLSA). It included more workers under its purview and increase wages incrementally. [J. Sherk June 25, 2013]. The hourly rate in 1938 was $0.25. Minimum wage have gradually increased every couple of years from $0.10 to $0.15. Sometimes these increases happened every year; back in the day of course. In 1963 Branching from the FLSA, the Equal Pay Act Worked into place making companies pay 100% equal amount of money; despite if they’re male or female. Inventing the phrase “equal pay for equal work.” [Taunton Daily Gazette Jan. 11, 2014]. In 2007 President George W. Bush passed the bill increasing minimum wage to $5.85. The first increase since 1997, which was $5.15 at the time. And now currently the minimum wage is $7.25 since 2009. Although 19 states including the District of Columbia have higher minimum ... ... middle of paper ... ...r pass? Maybe, maybe not. If so, we the people of the nation will have to deal with whether it’s a good decision or bad one. We have adapted to this particular change for centuries and it did not affect us in an unsatisfying way. But then again, the word isn’t how it use to be back in 2009; the last increase in minimum wage. Works Cited States Take Different Stance on Minimum Wage Legislation. (2013). Payroll Manager's Report, 17(11), 12-13. Congressman Fear Mongers On Minimum Wage: ‘You Guys Wanna Pay $20 For A Hamburger?’ (2013). By A. Pyke and S. Keye History of Federal Minimum Wage Rates Under the Fair Labor Standards Act, 1938 – 2009/ http://www.dol.gov/whd/minwage/chart.htm Top 5 Reasons Why Raising the Minimum Wage Is Good for You and Me. (2012) By M. Auerback What is Minimum Wage: Its History and Effects on the Economy (2013) By J. Sherk
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- Many people against raising the minimum wage create arguments such as, “it will cause inflation”, or, “ it will result in job loss.” Not only are these arguments terribly untrue, they also cause a sense of panic towards the majority working-class. Since 1938, the federal minimum wage has been increased 22 times. For more than 75 years, real GDP per capita has consistently increased, even when the wage has been1668 wordsRead More
- The federal minimum wage was signed into law in 1938 by President Franklin Roosevelt, at the height of the Great Depression. Its stated purpose was to keep America’s workers out of poverty, and increase consumer purchasing power in order to stimulate the economy. In their article “Raising the Minimum Wage: The renewed Debate over Fair Labor Standards,” the Congressional Digest states:888 wordsRead More
- “Minimum Wage Mythbusters” United States Department of Labor. U.S. Department of Labor, n.d. Web. 5 May 2104.736 wordsRead More
- In 1938, the United States Congress endorsed the first federal minimum wage through the Fair Labor Standards Act, (FLSA), which established a rate of twenty-five cents per hour. Originally the minimum wage only pertained to employees involved in interstate commerce, which consisted of the manufacturing, mining and transportation industries. But, in 1961 an amendment was passed to expand the minimum wage to other industries including construction, retail and service businesses. Since then, coverage has expanded to include close to 85% of the current workforce, and the wage rate has been increased 22 times. (Wilson, 2012). However, the minimum wage does not automatically increase in proportion to the cost of living because it is not indexed to inflation (Smith, 2009).1662 wordsRead More
- A federal minimum wage has been around since 1938; starting out as a way to set wage precedents for workers, minimum wage has grown and changed in accordance with growing inflation for the past 76 years. Although a federal minimum wage allows workers to have a minimum amount of income that is necessary to survive and pay the bills, and it forces businesses to share some of the vast wealth with the people who help produce it, federal minimum wage costs the economy thousands of jobs and makes little sense due to cost-of-living differences throughout the country.767 wordsRead More
- Raising the pay for minimum wage workers will be the proper way to create effective results, yet there exists those who oppose an increase. Neal Asbury, an American entrepreneur, writes “Raising the Minimum Wage Brings Minimum Benefits” to express how a hike in wages will increase unemployment levels. The author introduces a survey done in 1992 regarding economists’ beliefs towards an increase in minimum wage, where 72 percent claim it would hurt unemployment levels (Asbury). According to this claim, more than half of economists argue that if a rise in minimum wage is to occur, unemployment will soar among the country. Businesses will be prone to lay off employees or hire fewer workers because of higher costs and will lead low-skilled workers to be jobless. An increase in pay will lea...1329 wordsRead More
- The arguments for and against the minimum wage have been ongoing. On one hand, it’s simply a supply and demand issue. As prices (or wages) rise, the demand for that product (or labor) decreases—in other words, employers will simply stop or slow down their hiring. If the minimum wage increases too much, then it could even force some smaller firms out of business. Then even more people will be out of work. On the other hand, better paid employees could feel more motivation to increase their productivity. And increase in a company’s productivity could be high enough that, in order to keep up supply, it might need to hire even more employees. In this case, raising the minimum wage has increased employment.1446 wordsRead More
- These changes come after years of debate to raise the minimum wage so family can earn a living on minimum wages. The federal US minimum wage was first established during the depression and was rise from .25 cent to 7.25 per hour since it was organized in 1938. Increasing the minimum wage may have collision beyond adding more cash to workers pocket. Authority assert that the real effects on minimum wages increases a lot of negative thing to happen like hurting738 wordsRead More
- Bernstein, Jared. “Would Raising the Minimum Wage Harm the Economy?” The CQ Researcher 16 Dec. 2005:1069.1491 wordsRead More
- Pyke, Alan. "The Minimum Wage: Myths & Facts." Media Matters for America. N.p., 15 Feb. 2013. Web. 18 May 2014.656 wordsRead More
- 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.1177 wordsRead More
- 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.698 wordsRead More
- Transition: Last year the federal minimum wage celebrated its 75th birthday last week as part of the federal 1938 Fair Labor Standards Act. The Act banned child labor, set a 44 hour maximum workweek, and guaranteed a minimum wage of 25 cents an hour. (Hitzik) Since then Congress has raised the rate 23 times. (USDOL)1469 wordsRead More
- Congress created minimum wage with the Fair Labor Standards Act of 1938. The first minimum wage was only 25 centers per hour. Through history the minimum wage has increased a little at a time, umping a couple cents each time. The last time the United States changed the minimum wage was in 2007 which was a large jump from $5.15 per hour to $7.25 per hour. This jump of $2.10 was a large increase. Through the years it is evident that the minimum wage is constantly changing. “. It has averaged $6.60 an hour in purchasing power in 2013 dollars. But it has ranged from a low of $3.09 an hour in late 1948 to a high of $8.67 an hour in 1968(Sherk, J. (2013, June 25).1128 wordsRead More
- Minimum wage is the lowest amount than can be paid to an employee per hour. It was established by the Fair Labor Standard Act of 1938. (minimum wage, n.d) Minimum wage has been an ongoing discussion among economist. Currently the Congressional Budget Office (CBO) has reported that minimum wage will increase from $7.25 to $10.10, the first increase since 2009. (CBO, 2014). According to chapter 8, economist explains price flooring as being the “minimum price that is allowed by law” (Cowen & Tabarrok, 2012, p.147). This is where the government try to control prices above the market level, in this instant the sellers outnumbers the buyer. The same holds true for minimum wage, because the supply of labor outnumber the demand for labor. (Cowen & Tabarrok, 2012). Therefore, minimum wage is a form of price flooring that the government put in place to control the minimum price that should be paid by employers to employee above market price.990 wordsRead More