Minimum wage is the lowest wage an employer can pay their employees. There is a Federal minimum wage and in some cases a State Minimum wage. The current Federal minimum wage is $7.25. An employee who makes $7.25 an hour and works 40 hours a week, will earn about $14,000 per year. The Federal government deemed that the poverty line is anyone who makes less than $17,000 a year (“Federal Minimum”). Therefore anyone that makes minimum wage lives below the poverty line. As president Obama said in his state of address, "In the wealthiest nation on earth, no one who works full-time should have to live in poverty” (“Federal Minimum”). This essay will examine the problem of low minimum wage and explore ways to resolve this issue. There are two types of minimum wage in the United States. The first type of minimum wage is a Federal minimum wage. Federal minimum wage is established by the Federal government and is the lowest set amount of money an employer can pay its employee (“Federal minimum”). On the other hand, an individual State may set its own minimum wage. The States under the Tenth Amendment have the right to accept the federal minimum wage, or states may set their own minimum wage. Roughly 20 or more states have set their own Minimum wage laws. Some states set their own minimum wage because some states have higher cost of living. An example of cost of living is the price of gasoline. Gasoline in the state of Hawaii cost just about four dollars per gallon, where as the state of Oklahoma cost roughly three dollars a gallon ("Update: Minimum Wage"). Economists point to inflation as the main cause for low minimum wage. Inflation is described as “a general increase in prices and fall in the purchasing value of mone... ... middle of paper ... ...e Minimum Wage Is Stuck at $7.25; It Should Be $21.16 — or Higher." Inequality.org. Inequality, Facts On File 24 July 2012. Web. 16 Oct. 2013. Berfield, Susan. "Fast-Food Wages Come With a $7 Billion Side of Public Assistance." BloombergBusiness. N.p., 15 Oct. 2013. Web. 16 Oct. 2013. "Federal Minimum Wage." Issues & Controversies. Facts On File News Services, 13 May 2013. Web. 15 Oct. 2013 Henderson, David R. "Raising the Minimum Wage Will Not Reduce Poverty." Poverty. Ed. Viqi Wagner. Detroit: Greenhaven Press, 2007. Opposing Viewpoints. Rpt. from "The Negative Effects of the Minimum Wage." National Center for Policy Analysis, Brief Analysis. Vol. 550. 2006. Opposing Viewpoints In Context. Web. 6 Nov. 2013. "Update: Minimum Wage." Issues & Controversies On File: n. pag. Issues & Controversies. Facts On File News Services, 15 July 2009. Web. 3 Nov. 2013.
Sheffield, Rachel, and T. Elliot Gaiser. "Food Stamps Don't Stimulate Economic Growth." The Foundry Conservative Policy News from the Heritage Foundation. N.p., n.d. Web. 31 Mar. 2014.
"Racial Profiling." Issues & Controversies. Facts On File News Services, 3 Sept. 2012. Web. 5 Nov. 2013.
Understanding how the minimum wage level functions to affect poverty in a given society is crucial for informing policy in a number of important areas. Indeed, examining the link between poverty and the minimum wage is necessary for policy-makers working to establish sound economic policy as well as labour and social advocacy groups seeking to ensure the minimum wage is at a level sufficient to ensure workers can meet their most basic and fundamental needs. Readers should be concerned with the link between the minimum wage and levels of poverty because poverty is a particularly significant and impactful social issue. High rates of poverty can both negatively impact the economy, as well as contribute to a host of negative social issues. At the same time, there may be questions regarding the impacts to poverty associated with the minimum wage. Research which better clarifies this link is particularly important. For these reasons, investigating the link between the minimum wage and poverty is essential. This essay will provide a summary of two academic journal articles investigating the link between poverty and the minimum wage. Each summary will discuss the particular focus of researchers, the contribution of the study, the methodology employed by researchers, as well as their findings and conclusions. Finally, the essay will conclude with a brief commentary regarding the relevance of these articles to the larger topic, as well as their effectiveness in promoting learning.
What is minimum wage? Minimum wage is the lowest hourly rate (dollars per hour) that employers can pay their employees. According to minimumwage.com Minnesota’s minnimum wage is $7.25 per hour but will be getting raised to $9.00 per hour. Minnesota’s minimum wage is a common rate among many states such as Texas, South Dakota, and Iowa. Oregon and Washington are states that currently have their minimum wage rate set at or above $9.00 per hour. For both of these states, raising minimum wage has not necessarily decreased the poverty line. Both Oregon and Washington are still among the top 20 states for high poverty rates while New Hampshire has the lowest poverty rate and also has minimum wage set at $7.25 per hour.
A. The current federal minimum wage of $7.25 should be increased in stages to $10.10 by 2016.
Many people can think back and remember what it was like to put in an application for that first job and be presented with a position. Taking that position represents adulthood and is a very exciting time for a young person. All first jobs usually start with a minimum wage. Minimum wage is the minimum an employer has to pay an unskilled worker based on the regulations set forth by the Fair Labor Standards Act (FLSA) that was originally established in 1938. As people think back about their first jobs they can also remember what the minimum wage was when they took that position. Minimum wage is only increased based on the cost of living from the prior year. If the previous year shows an increase then the minimum wage will increase in the coming new year. Sinegal (2009) stated "The increase in the minimum wage is long overdue. Paying your employees well is not only the right thing to do but it makes for good business". Based on the cost of living we show for the year of 2009 minimum wage will not increase for 2010. Minimum wage is currently at $7.25 per hour. Most people who start at this rate are young people who are in high school or college and are working a few hours to help pay for school. After they graduate they can apply for better jobs and move on. People who live in areas without growth, single mothers trying to raise their children, and uneducated people are working more than one minimum wage job to make enough money to pay their financial obligations. While the cost of living did not increase, minimum wage is low because no increase is planned for 2010 a...
"Raising the minimum wage will benefit about 28 million workers across the country. And it will help businesses, too - raising the wage will put more money in people's pockets, which they will pump back into the economy by spending it on goods and services in their communities." -- President Obama
Saltsman, Michael. "Raising Minimum Wage Won't Lower Poverty." CNN. Cable News Network, 01 Jan. 1970. Web. 20 Nov. 2013.
The minimum amount of money that must be paid to an employee by an employer in hourly basis, regardless of employee’s post or qualification, which often fixed by government authorities is known as minimum wages of that country. Currently federal minimum wages in United States is $7.25 which was last set at July 2009. Every year there is a huge debate at our country about raising minimum wages. Increasing minimum wage obviously has massive effect on the country’s economy and its people. Some experts say that, raising minimum wages can improve the life style of those employees who are under the poverty line. They believe that by raising the minimum wages net income of the working class will increase and helps to keep the financial balance in between the management level and the operational level employee. In contrast, there are other people who think that by rising the minimum wages can have negative effect is country’s economy since company can hire low number of staff to keep expenses low, resulting massive unemployment population in the country.
"American Enterprise Institute." Why We Shouldn't Raise the Minimum Wage. N.p., n.d. Web. 13 Mar. 2014.
The following survey of the academic research on the minimum wage is designed to give nonspecialists a sense of just how isolated the Card, Krueger and Katz studies are. It will also indicate that the minimum wage has wide-ranging negative effects that go beyond unemployment. For example, higher minimum wages encourage employers to cut back on training, thus depriving low wage workers of an important means of long-term advancement, in return for a small increase in current income. For many workers this is a very ...
A very controversial yet interesting issue today in the United States is minimum wage if it should be increased or not. While some want to raise minimum wage to the living wage, minimum wage should not be raised because it increases teen unemployment, increase of Cost of goods/services,and Cut back on work hours.
Minimum wage is the lowest hourly pay employers are legally able to pay their workers. In United States there is huge debate on whether or not to raise the current minimum wage rates from seven dollars and twenty five cents per hour. States are leading push to increase the minimum wage by Democrats who appeal to working class Americans. Congress want to increase minimum wages above seven dollars and twenty five cents. The issues of whether to raise the minimum wage or not.
The thought that minimum wage should rise as inflation has risen and as productivity increases is a good thought. According to an article on the Huffington Post, “minimum wage should have reached $21.72 an hour in 2012 if it kept up with increases in worker productivity”. The article also stated had