Economics Of America 's Minimum Wage

The minimum wage debate has been a hot topic over the past year, especially with the Presidential Election. This is a divisive topic that people rarely agree upon. There are essentially two sides you can take when it comes to this argument. Either people are for minimum wage or are against raising, or even having, a minimum wage. Proponents of the minimum wage are typically politicians who are lobbying for the vote of the people who feel that a minimum wage is critical to their wellbeing, and those who sympathize with people who earn “minimum wage”. Minimum wage is destroying America’s free market economy and someone needs to take action and find a better solution to this problem. Without anyone acting on this problem now, it can potentially be worse in the long run. Raising the minimum wage in the United States will do more harm than good to society because of the long-term effects.

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

More specifically, raising the federal minimum wage would provide a huge boost to low-income Americans while imposing a negligible negative effect on American businesses and the economy as a whole. In essence, this paper will attempt to prove in detail that raising the federal minimum wage is a necessary action which will help to alleviate many of the problems faced by low-income earners in America and provide an overall benefit to society.

This report is an economic overview of the United States minimum wage. It’s presented in three perspectives on how consumers, corporations and the community are affected by new minimum wage laws. The purpose of this report is to provide imperative information that examines how an increase in minimum wage attributes to multiple effects. This report will also explain the advantages and disadvantages that many people face when the government intervenes to pass a new minimum wage law in the United States. This report focuses on the state of California and it emphasises on the city of San Jose. This report incorporates how the city of San Jose was affected by Measure D. a new minimum wage that was imposed in the beginning of the

At one point or another, minimum wage is a term that most American people will familiarize themselves with. The topic of minimum wage can sometimes be a particularly controversial one, so it is important that we understand the true effects that this has on our nation’s economy. Before the fall of our economy and the increase in prices of everyday necessities, such as monthly bills, groceries and gasoline, a family could have found it easier to survive off of this wage; however, as the prices continue to rise in today’s economy, it is harder for the working family to “get by”. As of 2015, the national minimum wage is $7.25 per hour or a little more than $15,000 annually and for a working family in today’s economy, it may be difficult. This paper will focus on the effects of raising the minimum wage and discuss how it will affect our economy and the American people.

Although it is not a new topic in America, the decision to raise the minimum wage continues to be controversial, especially in the political realm. The political parties still move to block the opposing party from successfully implanting their ideals, causing either nothing to be accomplished or the situation to worsen. Research shows that raising the minimum wage a reasonable amount would lessen the gap between the rich and the poor, continue to fulfill its original purpose of protecting workers and keeping the economy in a healthy state, and contain more advantages with a minute influence on employment rates.

In the 1960’s, a full time worker could lift a family out of poverty if they earned the minimum wage. In today’s day and age, that minimum wage salary would be about $10.86 per hour. For the longest time, our minimum wage salary was under the $10.00 mark, but in January of 2016, it finally got raised to that price. In November of 2013, President Barack Obama had mentioned that if the minimum wage was raised to at least $10.00 per hour, it would help 4 million Americans, and also reduce our poverty level, and increase the

Legislation to raise the minimum wage in the United States is a necessary tool to assist working impoverished families. Mike Konczal states, “Raising the minimum wage to $10.10 would lift 4.6 million people out of poverty" (33). As well as lifting millions from poverty, the increase would greatly impact those living in extremely poor conditions and shrink how far below the poverty line others are. These figures display the minimum wage’s necessary role in the alleviation of poverty. It is well known that families who emerge from poverty are unlikely to return to their former conditions. Economists argue that the poor can be helped in better ways

Today "the federal minimum wage" is $7.25 per hour since July 24, 2009. It has failed to keep up with inflation. The real value of the minimum wage rose steadily from 1938 until its value reached a peak in 1968. Thereafter, it suffered severe erosion as Congress failed to adjust for the inflation over time. The minimum wage of $1.60 an hour in 1968 would be $10.47 today when adjusted for inflation. This means that the purchasing power of the minimum wage has decreased significantly over time. The current minimum wage is no longer enough to protect workers out of poverty. A person who earns the minimum wage and works full-time (40 hours/week, 52 weeks/year) only earns about $12,000 in a year. This is almost $7,000 below the poverty line for a family of three ($19,090)

Raising the federal minimum wage is a high priority for President Barack Obama, but the issue is mired in debate over whether or not raising the minimum wage would kill jobs. The federal minimum wage is currently $7.25 an hour. The White House and some congressional Democrats want to bump it up to $10.10 an hour. As of this past December, a majority of Americans support a raise. On Election Day, voters in Alaska, Arkansas, Nebraska and South Dakota approved state-level increases to minimum wages. Many democrats these day have laid claim that in years when the minimum wage was raised the economy also saw a rise in jobs. With that being said none of them have really shown any proof to this claim. So I turned to the Bureau of Labor Statistics. For every year Congress increased the minimum wage since 1978, I looked at how much employment grew or shrank a year after the new wage went into effect. The first federal minimum wage went into effect in 1938, but

In a world governed by the rule of currency has major effect toward the amount an individual owns. In the world economy labor is required in order to supply services to whomever is willing to buy. The amount of money distributed and earned throughout the economy feeds the nation 's GDP which shows the stability of the overall economy of that nation. There is an imaginary cycle that must be established in an economy in order to balance both labor and revenue in order to stabilize a country economy.

The issue of whether to raise the minimum wages across the United States has for years divided economists, politicians and academicians alike. The first national minimum wage laws in the US were established with the passing of the 1938 Fair Labor Standards Act during the Great Depression at the rate of $0.25 per hour. Currently, the federal minimum wage stands at $7.25 per hour while many states and localities such as the city of Seattle have raised minimum wages significantly above the national rate (Hoffman, 2014). However, for working people today, pay for work has declined in value when adjusted for inflation from what it was at the beginning – pay rates have fallen along with fewer quality

Sunday, July 24, 2016, marks seven years since the last time the federal minimum wage was raised (U.S. Department of Labor). Since raised, the cost of living has increased by nearly 12 percent. When President Obama called for an increase in 2013 19 states, have raised their minimum wage between $8.15 and $11.00. But is the hike beneficial to everyone? According to conventional economic analysis, increasing the minimum wage reduces employment in two ways. First, higher wages increase the cost to employers of producing goods and services. Second, a minimum wage increase raises the cost of low-wage workers about other inputs that employers use to produce goods and services, such as machines, technology, and more productive higher-wage workers

Whether or not change should be made to the minimum wage has been debated in the United States, as well as in other countries, for years. Some people argue that increasing the minimum wage will overall decrease poverty levels within the nation. However, multiple studies have been performed and come back showing that this is not completely true. By increasing minimum wage, only a small percentage of those who are in poverty are being helped as only about 5% of minimum wage earners are considered to be living below the poverty line in the United States. Even in developing countries, raising the minimum wage helps, but not nearly enough to see lasting results. While there are many benefits to raising the minimum wage, there are also consequences. For the small difference that a minimum wage increase makes in decreasing poverty and for the consequences that would follow a wage increase, it would be better to take other measures in order to decrease poverty. (Halvorson)

Every year, there is a constant debate on whether the minimum wage should be raised or left alone. Some economists believe raising the wage will reduce poverty and fix income inequality. The main argument for a minimum wage increase is centered around human rights and fairness. This ties into the income inequality where highly paid workers earn multiple times that of low wage workers. Since the low wage workers earn significantly less, they cannot afford all necessities such as healthcare, housing, food, and other social needs therefore they’re seen as a threat to social inclusion(Romich, 2). However, if the minimum wage was increased, more money would be put in the pockets of the