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.
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
Having minimum wage causes many people to become jobless all so a certain amount of people could live comfortably. Cooper believes that today’s workers are “stuck in jobs that pay so little they struggle to afford basic necessities.” Yes, some people may have trouble affording basic necessities, but at least they have some money that will help them out even if it’s just a little. A low paying job can make a difference between having nothing to eat at all or three small meals every day. If minimum wage increases, than the lives of many people would become even more difficult, and unbearable. A job that pays a little money is better than no job at all.
Should Minimum Wage Be Raised?
Minimum wage has always been a controversial issue. Many politicians use the argument of minimum wage for their own political propaganda. Some may argue minimum wage should be raised, while others believe it will have detrimental effects on our economy if it is raised. Surprising to most people, minimum wage earners make up only a small percent of American workers.
“Of course, nothing helps families make ends meet like higher wages. … And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest-working people in America a raise.”
Federal minimum wage has been an ongoing controversial topic for many years. Many have argued that the federal minimum wage should be increased, while others argued that it should stay at its current price. Both proponents and opponents, based their arguments on well-studied and predicted impacts that will result because of the increase in the federal minimum wage. Proponents have argued that the federal minimum wage should be increased for the positive outcomes that will result from it. The results proponents predicted, will lift people out of poverty and create income equality, reduce government welfare spending, and increase consumer spending. On the other hand, opponents have argued that minimum wage should not be raised because of the
"If we took away the minimum wage, we could wipe out unemployment completely because we would be able to offer jobs at every possible skill level."
What would be so bad about raising minimum wage? Before other states jump on the $15 minimum-wage bandwagon, they might want to look at what's happening in Massachusetts — one of two states with a $10-an-hour minimum wage. Massachusetts increased the minimum wage from $8 to $9 at the start of 2015 and to $10 on the first day of 2016. The state is now mired in its longest stretch of net job losses since the recession in both the retail and the leisure and hospitality sectors, Labor Department data show.
Minimum wage was first established in 1938 during the Great Depression by President Franklin Roosevelt to protect the tens of thousands of workers working in sweat shops and factories in America from exploitation. He signed the Fair Labor Standards Act that year which introduced various regulations including banning child labor, establishing workplace safety statutes and arguably the most influential, creating a minimum wage standard of 25 cents per hour. Historically, many employers and fiscal conservatives violently opposed the law arguing that minimum wage could hurt employers, much as they argue now. But President Roosevelt'...
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).