Economics Essay : Minimum Wage

Now the question is what is minimum wage. “An amount of money that is the least amount of money per hour that workers must be paid according to the law” (Merriam Webster’s learner’s dictionary). According to United States department of Labor “The federal minimum wage for covered nonexempt employees is $ 7.25 per hour effectively July 24, 2009” (Department of labor/ Minimum wage).

The minimum wage was established in the United States by the Fair Labor Standards Act of 1938 at 25 cents per hour. These laws are broadly supported by the public. Congress enacted these rules to combat “labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and the general well-being of the workers” (Sharp, 2013 p. 71). The purpose and intent of

The selling point that has brought people to the United States for centuries is the American dream: Prosperity, Luxury, Opportunity, and so on. Unfortunately for many, this dream has been squandered by the receding economy of an indebted country. As inflation runs rampant, the value of the U.S. dollar decreases, lowering the value of household and business incomes. This economic recession has led many, especially those who only earn the minimum wage, to poverty. According to the United States Department of Labor, “The federal minimum wage is $7.25 per hour” (“Wage and Hour Division”). Some people believe that a solution to this problem is to raise the minimum wage; however, doing so would ultimately result in a negative effect on the

Franklin Roosevelt introduced minimum wage as a part of Fair Labor Standards Act of 1938. The purpose of minimum wage were to prevent poverty and to stimulate the economy by increasing consumer’s purchasing power. However, in 2015, 78.2 million workers were paid hourly, representing 58.5% of all workers in the United States. Among those people, 870,000 workers earned the minimum wage, $7.25 per hour and 1.7 million workers earned below the minimum. In total, 3.3% of workers earned exactly or below the minimum wage. For years, there have been heated debates about whether the government should raise the minimum wage. In 2016, California, New York, and Washington D.C. agreed to increase the minimum wage to $15 per hour. Some people think raising the minimum wage will decrease poverty and improve the workers living. Instead, raising the minimum wage will make the job market more competitive and it will increase the poverty level. When minimum wage was raised to $10 per hour, it benefited 16 to 24 million people while half a million workers lost their job. Rather than improving, Faces of $15 will damage the U.S economy and deeply hurt living condition of Americans.

There has been many conversations about what the positive impacts can come to America 's lowest income workers as a result of an increase in the minimum wage, and there has also been equally as many discussions over the negative effects the increase can have on similar people. This paper’s purpose is to combine each viewpoint and objectively analyze the arguments for and against an increase in the minimum wage. I will first discuss the benefits for an increase, then the disadvantages, and in the last paragraph, I will

Raising minimum wages is a contestable issue because it is debated in wide and varied audiences. Minimum wage is near the top of economists’ interest; they are looking for the connection between low wages and poor job markets. Each country sets its own laws and regulations regarding wages. For this reason, it has significant importance to policy makers and workers in each of those respective countries. Social activists have also found interest in the topic due to the fact that those who earn a minimum wage tend to come from poor minority families. Furthermore, the average American should have the strongest interest in the conversation because most citizens have been paid a minimum wage at some point in their life. Due to this fact, the idea of a significant federal minimum wage increase in America is open for debate specifically to rejuvenate the job industry, improve living conditions for citizens, and strengthen the economy as a whole.

Minimum wage is the lowest amount of pay that employers can legally pay their workers. Minimum wage in the United States, is set at $7.25, the federal government takes out up to 12 percent of the whole payment for taxes. The Fair Labor Standards Act (FLSA) are the ones who have set the minimum wage from 1938 to the current year, 2017. The FLSA is a law that sets various labor regulations that includes interstate commerce employment, requirements for overtime pay, and the limits on child labor. Some argue that teenagers and low paying workers should be paid more than $7.25 dollars an hour, while others argue that they should suck it up and be thankful for what are paid. Researchers have stated that high minimum wage increases have helped bring the poverty level down in the United States. Other researchers have said that the level of minimum wage has little to no effect on the poverty level. Minimum wage is a happy medium that a company or organization sets for an employee; they use this as a starting point for an employee to receive raises and bonuses. Minimum wage is thought out to be by some a terrible thing because it is the reason our poverty levels are down, but with the minimum wage it has helped with economic growth.

Millions of Americans live in poverty unable to find high paying jobs to support themselves and their families. A common belief is that paying a higher minimum wage would help lift people out of poverty by giving those with low paying jobs a higher income, however the evidence suggests otherwise. The 2016 race to the White House heating up, the minimum wage battle is at the forefront of every economic discussion. The rhetoric between candidates within and across party lines is intensifying. Many differing opinions are being heard. As the debate over whether or not to raise the federal minimum wage from $7.25/hour to $15/hour rages on, one side stands apart time and time again.

Most people have witnessed firsthand driving through a densely populated city and glancing out the window to see camps set up on the streets for people who cannot afford living quarters. These poor citizens are living like this because they either do not earn enough money annually to keep a home and use what they have on a source of food. Increasing federal wage to $10.25 would help these poor American citizens and the children in America as well.

The minimum wage in the United States has been an ongoing controversy for many years now. The first minimum wage was established in 1938 (Reich, 2015, P. 3). That minimum wage started out at .25 cents an hour; compared to today’s higher wage of a government standard of $7.25 an hour. Many people believe that the minimum wage should be more so that those who live below the poverty level in the United States will decrease, however in many other people’s opinions the minimum wage should be the same. The minimum wage should stay the same at a low $7.25.

Minimum wage had become a big debate in our country, both federal and state minimum wage. They debate whether we should raise the federal wage or we should just let the states determine their own minimum wage rate by getting rid of federal all together. Many presidential candidates and other political officials would like to see the rate get up to at least $10 or even $15. The debate is that this will hurt our businesses and economy if we were to raise the rate. They also don’t think that people working a no skills job should earn almost as most as skilled job workers. The federal minimum wage was put in place to make sure the workers were in America were getting a pay that they deserved. In some states and even cities the cost of living has

Umesh Regmi Dr. Lisa Moody English 101 Section 54 22 November 2014 Time for a Raise “A family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong. Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full time should have to live in poverty.” —President Barack Obama. For the purpose of keeping America out of poverty and increase consumer purchasing power in order to simulate the economy, President Franklin Roosevelt signed the law of minimum wage on June 25, 1938 as a part of the Fair labor Standards Act of 1938. The first minimum wage was $0.25 an hour, which is equivalent to $4.18 in today’s dollars. Started from $0.25 an hour, the minimum wage was raised to $7.25 per hour on July 24, 2009. Although the minimum wage has been increased to $7.25 an hour, the value of it has fallen sharply over the past forty years. In 1968, the federal minimum wage was $1.60 an hour, which translates to $10.90 in 2013 dollars. One of the most important reasons behind declaring the minimum wage law is to ensure that even the lowest-paid workers would receive an adequate level of pay. Adjusted for inflation, the minimum wage raise in 2009 was way lower than it was in 1968. The law that promises to pay its workers sufficient money for their living has failed in past decades. In order to adjust the minimum wage to the inflation, to improve the living standard of the people, and to boost the overall economy of the country,

There has been many conversations about what the positive impacts can come to America 's lowest income workers as a result of an increase in the minimum wage, and there has also been equally as many discussions over the negative effects the increase can have on similar people. This paper’s purpose is to combine each viewpoint and objectively analyze the arguments for and against an increase in the minimum wage. I will first discuss the

There is a lot of controversy as to why Ontario’s minimum wage should or should not increase. People in Ontario are already struggling enough with trying to find a job with the current economy. Since the minimum wage has risen, smaller companies are having to let employees go because they cannot afford the minimum wage and keep their the businesses open at the same time.

I agree with this article, written by Niels Veldhuis, to the extent that minimum wage negatively affects the economy, by increasing unemployment. However, if I were Veldhuis I would have added that the social values of minimum wage may outweigh the negative effects on the economy. This matter is a value judgement, which cannot be proved right or wrong by economics. Veldhuis supports his statement with proof from studies; I will explain these findings with further microeconomic theory. I will discuss the following to reflect upon the accuracy of his arguments: theories of producer behavior and cost minimization, market equilibrium, welfare, and the importance of value judgements.