Minimum wage is the lowest amount of money an employer is allowed to pay their employees hourly by law. This enactment has been a part of our country for many years. Raising the federal minimum wage has been a great controversy among our nation for a while now. There are many factors that contribute to this matter positively and negatively. Many times we think that more money means more prosperity, but is that necessarily precise? Looking back at the history of minimum wage over the years, who is affected, and what the probabilities of such change today, can help further understand the importance of this action to our country. Minimum wage was first adopted by President Roosevelt in the 1930s during the great depression, starting at only $0.25 per hour. (Patton) Before this or any other regulation workers were being exploited to work in unfavorable conditions for only cents a week. Following his election in 1936, President Roosevelt signed the Fair Labor Standards Act in 1938. …show more content…
This can make people less interested in further advancement in their career choices. Having a sufficient pay can lead people to settle rather than seeking further studies and experience. Minimum wage should be considered a stepping stone for young individuals to join the workforce instead of creating a comfort zone for them. Calling for almost a 40% increase in wages can have pros and cons depending on each person’s perspective. It can be beneficial for some but it can also cause consequences for others in the long run. There should be an increase for minimum wage workers but it shouldn’t be too drastic to where businesses aren’t able to balance employee expenses. Stabilizing wages for those workers at an appropriate amount can help boost economy and lessen the chances for major
“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 minimum
There is also the problem of the minimum wage, and how it relates to poverty, that has been studied by many researchers. According to the U.S. Census Bureau in 2015, 13.5% of Americans suffer in poverty, and the average annual salary of minimum wage workers is $15,080, which is right below the poverty line for two or more person families (David Cooper 1). This brings us to the question, will raising minimum wage reduce poverty? Raising the federal minimum wage would fail to reduce poverty because
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
Written Assignment unit 2 In economic studies the minimum wage is an example of a price floor. A price floor is the absolute minimum price at which a good or service can be sold. The market equilibrium price is where the supply of a good or service meets the demand for it in the marketplace. The minimum wage price floor is enacted so that the suppliers (current or potential employees in this case) will not sell their labor below the designated price even if the demanders (employers) are willing
Will raising the federal minimum wage help or hurt the American economy? Introduced in 1938, minimum wage has since then changed twenty two times. As the American economy recovers, most Americans would agree that raising the federal minimum wage too high at once would set the economy back. The Democratic Party introduced new legislation this year, requesting minimum wages rise to $15 an hour, which is more than double the current. Even though this legislation most likely will not make it anywhere
Minimum Wage is the base hourly amount that employers are permitted to pay their workers. The current Federal minimum wage is $7.25 per hour. There are several exemptions to both federal and state minimum wage laws, including employees who receive tips, students and minors, and several others. Many people think that this is too low of a price. Minimum wage effects the lives of people very much. It should have a reason on why it is being raised. That reason should be based on the cost of living rate
Minimum wage is a big part of the government and culture in the United States, and it has been for many years. It was created to be of benefit to the poor or less skilled workers in the working world. The minimum wage has evolved throughout the years since the late 1800’s. But what do people really know about it? What is minimum wage? How did it start? Is it good for the society? Minimum wage resulted from the Great Depression of the United States in the 1930’s. During the Great Depression the
Minimum Wage Currently, in the United States, the federal minimum wage has been $7.25 for the past six years; however, in 1938 when it first became a law, it was only $0.25. In the United States the federal minimum wage has been raised 22 times since 1938 by a significant amount due to changes in the economy. Minimum wage was created to help America in poverty and consumer power purchasing, but studies have shown that minimum wage increases do not reduce poverty. By increasing the minimum wage,
because both parents make minimum wage. Parents cannot provide for a family because they barely make enough money to pay the bills. According to Driscoll, it is proven that a “family of three all making minimum wage, still falls below the poverty level.” President Obama has proposed raising the minimum wage to $9.00 but no actions have been made on his behalf. So congress needs to raise the minimum wage in order to help the general well being of the people. Minimum wage is the least amount of money
The discussion of raising minimum wage to $15 an hour is a very big topic. Some people think it should be raised so they can try to live off of it. Raising minimum wage would help some areas in the U.S., but it will also hurt other areas that are smaller and do not have as high of a price of living. It could very seriously hurt the nation's economy. In some states a raise could help, but raising the federal minimum wage would be a very bad thing. Minimum wage should not be raised to $15.00 dollars
the minimum wage increased to $10.10 an hour? This has increased over the years and everyone has their opinions. Those who are in favor of increasing minimum wage to $10.10 believe that more money will decrease poverty and the unemployment rate. Those who oppose the increase in the minimum wage, believe that it should not be increased and should stay the same, because it will cause businesses to close up because they are not making enough money to survive in the economy An increase in minimum wage
The shockingly low minimum wage in America is borderline unethical. Since the minimum wage was established in 1938, there’s been controversy about how much it should be. It was originally set at an amount that would allow workers to maintain a minimal standard of living (30 Days). Since then, the minimum wage has been raised 22 times, but this hasn’t been enough to support the same goal. Not only has inflation made minimum wage worth significantly less, but the cost of living has gone up. Two thirds
state of Washington being taken out of poverty. B. The federal minimum wage should be raised to $10.10. C. With a low minimum wage now at $7.25, many people including families are living in poverty. D. Arindrajit Dube, an economist at the University of Massachusetts Amnerst, says that a $10.10 minimum wage could go a long way in reversing some of that economic damage. (Berman) E. Today I will be telling you why the minimum wage should be raised because it helps the economy, it helps families
The Effects of Raising Minimum Wage The minimum wage was first implemented as part of the Fair Labor Standards Act of 1938. (Patton, 2014) The effects of raising the federal minimum wage are highly debated by politicians and economists. This issue, along with unemployment, is one that is talked about frequently and often times in conjunction with political elections. President Obama, along with many other politicians believe and advocate that raising the federal minimum wage will be beneficial to
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