Effects Of Raising The Minimum Wage On The Economy

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Raising the Minimum: Its effects on the economy In 2013 President Obama suggested raising the current minimum wage from seven dollars twenty-five cents to ten dollars ten cents. This sparked debates on the different ways an increase would affect lawmakers, business owners, and low-income families. As a result, equally important views emerged from both sides. With attention to the benefits our economy and low-income families would receive from a minimum wage increase, it is my belief an increase to the minimum wage would help lower government spending on Supplemental Nutrition Assistance Program (SNAP) benefits and stimulate economic growth, My goal in this paper is to influence your opinion on why an increase to the minimum wage is detrimental. This paper is organized into three main sections. The first section provides you with the history of the Fair Labor Standard Act, its amendments, and minimum wage increases. The second section will report on SNAP benefits and government spending. Third, I will specify how an increase in the minimum wage will stimulate economic growth. I end my paper with a summary of the facts that support my thesis. I also include two appendices; one of works cited and the other is my writer’s statement. HISTORY According to an article called Fair Labor Standards Act of 1938: Maximum Struggle for a Minimum wage by Jonathan Grossman, in 1938, the federal government passed a law called the Fair Labor Standards Act (FLSA). (Grossman)This law established a standard work day as eight hours per day, a standard forty-hour work week, a minimum hourly wage, overtime compensation for any hours worked beyond forty hours a week, and child labor laws. President Franklin D. Roosevelt passed this act to benefit employees forced to work extremely long hours for slave wages. It also created a competitive wage that helped put an end to employers’ abuse of employees during the Great Depression. The first mandated minimum wage was twenty- five cents an hour, scheduled to increase to forty cents per hour over a seven-year period. According to Public Papers of the President of The United States, Harry S. Truman, 1949, Truman explains World War II’s inflation decreased the value of money far below its

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