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Economic effects of raising the minimum wage
Debate over minimum wage
Economic effects of raising the minimum wage
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Life is a struggle and finding a job and paying your bills is not always easy in this world today. A major debate that has been an issue is whether there should be a law to raise the minimum wage. The minimum wage is the lowest hourly salary an employer can pay an employee for their work. According to Williams (2013), “The minimum wage was signed into law by President Franklin Roosevelt in 1938”. The first minimum wage was 25 cents per hour. Since then, the minimum wage has been increasing as the last increase of Florida's minimum wage was an increase of 14 cents on Jan. 1, 2014. This federal increase makes it 68 cents higher than the federal minimum wage of $7.25. Gibson (2014) states “Obama, who last year called for an increase in the federal minimum wage to $9 an hour, now plans to rally public support behind a bill in the U.S. Senate that would gradually boost it to $10.10 over the next two years”. After researching this topic very thoroughly, I have found that raising the minimum wage does have its pros and cons. An increase in the minimum wage has many benefits for the people of the U.S. Increasing the minimum wage would advance the average living for many families already living under the poverty line. According to Jamieson (2011), “Jacking the federal minimum wage from $7.25 to $8.25 would give a raise to 10 million workers”. A minimum amount of income is extensive for workers in order to survive and pay the necessary bills to live. A regular full-time job is working 40 hours per week and with getting paid as little as minimum wage per hour, an average person will make about $1000 per month after taxes and such are deducted. With such high prices of living, rent by itself can take almost the whole paycheck if not more. H... ... middle of paper ... ...types of positions, there are types of taxes withdrawn. Consequently, tax revenues for the country are condensed. If the minimum wage was eliminated, the revenues would go up. Moreover, with smaller quantity of jobs accessible for illegals, they will not be as motivated to come into the country to begin with. The minimum wage law has its advantages and disadvantages. In a sense it will help those less educated/skilled support their families and be able to afford the costs of life. The minimum wage keeps employees guaranteed to make the bare minimum. Without minimum wage, employers could put any price they wanted on labor. Nevertheless, minimum wage does hurt business owners and keeps there business from running effectively because they have a certain budget they must pay their employees. Like anything else, the minimum wage law has its benefits and difficulties.
While some believe that raising the minimum wage will resolve poverty issues and lack of pay with the signing of legislation, the raising of the minimum wage to $10.10 an hour (as advocated by President Obama and the Democrats) would cause the poverty issue to be worse than it already is; inflation would occur, employees would be laid off, and minimum wage employees would lose welfare benefits, thus offsetting the wage increase. The Government should consider the effects on the American economy as
The minimum wage is the lowest amount of required money that is paid per hourly or daily basis for the employees that are regulated by the government. Minimum wage laws started in New Zealand and Australia with an established purpose to provide a minimum standard of living for workers. In the United States, the first federally mandated minimum wage had provided workers 25 cents per hour as part of President Franklin D. Roosevelt 's Fair Labor Standards Act of 1938. In addition, the Fair Labor Standards
In “Why raising the minimum wage is good economics”, John Komlos uses his knowledge and experience in the field of economics to explain why Congress should raise the federal minimum wage. He makes his case by comparing low-wage workers to Russian serfs and relating the hardships of the working poor. According to Komlos, a person working full-time at a minimum wage job makes about $12,000 a year after taxes, just above the poverty line for a single person. He also points out that America’s federal
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. According to the Bureau of Labor Statistics, minimum wage workers make up about 2.8% of all workers in
Everyone wants more money, which is why there is such a huge push to increase the minimum wage. Increasing the minimum wage may sound like a good idea in theory, but it is a short sighted solution to the problem of poverty and people not having the money they need for necessities. While there may be some benefits to increasing the minimum wage, the negatives outweigh the positives. Raising the minimum wage is not a good idea because people would lose their jobs, people would be less incentivized
economically. Wanting to raise the minimum wage to people who work in the fast-food industry that earn minimum wage is the biggest conflict. Majority of fast-food jobs pay minimum wage and are known to be for teen-aged workers not for an older person to make a living from. Although many people think raising the minimum wage would be a beneficial idea for the government so it can help the economy out. Minimum wage was never meant to be a feasible income; if minimum wage gets increased it would not benefit
there has been a big debate on minimum wage between the two main parties known as the democratic and republican parties. First of all, the main concern since 2009 is that the minimum wage has been of $9.00 dollars and many liberals and a few republicans believe that it should be raised to $15 dollars. In the last couple years, it has been argued that the minimum wage is not enough to meet ends meet in the United States. This topic regarding the raise of the minimum wage is important for a few reasons
The federal government established minimum wage in 1938. It was established in a law known as the Fair Labor Standards Act (FLSA). This also marked the first time employers could legally pay workers over time. When the law was first passed minimum wage was $0.25 per hour. President Franklin D. Roosevelt said the act was “the most far - reaching, farsighted program for the benefit of workers ever adopted".(Grossman)Raising minimum wage could hurt the economy. Additionally "The Fair Labor Standards
Minimum wage has been a topic that has divided our nation for a while now. Some say there should be an increase in the minimum wage while others say the should not be. In my Argument today, I will be in support for the raising of the minimum wage. If the minimum wage is to be increased, it will provide low-income family with money to spend. Furthermore, the more people spend, the better the economy so raising the minimum wage will boost our economy. And finally, raising the minimum wage will reduce
Some think that the minimum wage should not be raised, but others think that the minimum wage should be raised. If one had to be chosen, raising the minimum wage would be better. The minimum wage should be raised because if you were to work full time on minimum wage, you are below the poverty line; Also states that did raise the minimum wage above the federal standard have had more job growth than states that did not. Finally, "Minimum wage workers are much more likely to immediately go out and spend
devastating for them, and we must bring a change (Kinsella). The social issues of poverty sadly affect children more than adults. Children who grow up in poverty, according to studies, may not complete a high school education, and may suffer from health problems. For us to change the social injustice many New Yorkers face because of poverty, we must change the minimum wage law to a higher wage. People who work off minimum wage are not making enough money to meet the high expectations of their daily
Minimum Wage Raise in Seattle After the protest in New York City, the issue of raising the minimum wage has come up once again. Seattle is spearheading this cause with a proposal of raising the minimum wage to $15 per hour. This will help minimum wage workers a great deal by increasing their income. However, there are concern that this move could hurt certain businesses, which can lead to higher unemployment and contraction of the economy. The ethical issue surfaced as this will benefit some at the
Minimum wage has been an ethical and economical dilemma for decades and has many sceptics weather it is beneficial or not. Many people have debated weather raising minimum wage would have positive, negative, or no effect at all. There has been claims of all effects from more employment to unemployment and if it would affect the prices of our goods and services. There has been prediction that if the minimum wage is increased it would cause people to lose jobs because the amount of profit would decrease
should have to raise a family in poverty. Every day for low wage workers is filled with struggle and anxiety. People are making heartbreaking decisions on which bill to pay, which meal to skip, and whether to buy a gallon of milk or a gallon of gas. The national minimum wage of $7.25 per hours is low. It has remained unchanged for five years while the cost of food, utilities, transportation, and others have risen. Raising the minimum wage to $10.10, and $13 by 2019 would benefit 28 million workers
Article Rebuttal: Minimum Wage Over the years there has been much debate about raising the federal minimum wage. Some states have taken it upon themselves to set higher minimum wages than the federal minimum wage, because of the lack of action by congress. The supporters of the raising of the federal minimum wage have been more vocal lately. This is especially true since studies have shown, that the gap has grown between the wealthier population, and the middle class. Recently President Obama, because