Federal Minimum Wage Is The Right Course Of Action

There has been much controversy over the years on the impacts resulting from an imposed minimum wage and how it relates to the economy. It wasn’t until President Franklin D. Roosevelt signed a Bill enacting the Fair Labor Standards Act of 1938 that American’s gained the right to a minimum threshold by which their labor could be sold. Against much opposition President Roosevelt was for a law that banned oppressive child labor and set the minimum hourly wage at .25 cents, and the maximum workweek at 44 hours.1 The minimum wage has been around for many years and it wasn’t until recently that it has become the topic of many discussions again. The intent of this paper is to look at some of the economic impacts associated with an increase to the minimum wage. There continues to be a difference in opinion among many economists on the pros and cons of a minimum wage hike. Those in favor attribute quality of life, reduction in poverty and gained efficiencies; while those that oppose claim an increase to poverty, unemployment and reduced efficiencies across the board. Which path warrants the most merit and should be considered a viable option across the board for the United States labor force?

One of the most talked about subjects in the U.S economy is the topic of minimum wage. With president Obama’s increase in the minimum wage to 10.10$ per hour people, both economists and politicians alike, have been debating whether raising the bar is a smart idea. At a time when the country the country’s inflation continues to rise at a steady pace and Americans are constantly working to feed their families, some economists know that a raise in the minimum wage would help elevate some of the difficulty. The last time the federal minimum wage was raised was in July of 2009, where rose from 6.55$ to 7.25$. However, there are plenty of reasons as to why the wage should be raised. Some may not think it, but raising the

Although America is known as the richest country in the world, 43 million of its citizens are in poverty. Unfortunately, some of them work full time, yet are still in poverty due to the low minimum wage (“Should We Raise”). In 1928, the first federal minimum wage of 25 cents per hour was set by President Franklin D. Roosevelt to prevent workers from being underpaid. Since 2009, the federal minimum wage has been $7.25 (Smith). The age old debate of whether or not to raise it is still going on in the US. The federal minimum wage should be increased to keep up with inflation, help support the poor, and stimulate the economy.

The controversy over what to establish as the official minimum wage in the United States has been debated and argued over for many years. Due to inflation, the gradual increase of pricings due to a saturation of printed currency, the minimum wage for workers has to be increased in order to compensate for the ever-fluctuating value of the U.S. Dollar. Many today are rising to the conclusion that a minimum wage of fifteen dollars an hour is necessary. This motion is designed to keep those who have minimum wage income out of poverty and to increase the amount of money in the consumer’s pocket overall. However, this particular increase in minimum wage will lead to the inevitable downfall of the United States’ economy and be a catastrophe for the working class.

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.

Presently, the citizens of the United States of America are involved in an impassioned debate over the federal minimum wage. As of October 5, 2016, the federal minimum wage is set at seven dollars and twenty-five cents an hour. There are numerous amounts of stakeholders when it comes to minimum wage. The three stakeholders mentioned in this essay will be Companies, Employees, and the Economy. In addition to the stakeholders, this essay will also dig into the history of the United States Federal Minimum Wage and see how it has progressed over the years and if it kept up with inflation over the years. With this information, society will see what an increase to the federal minimum wage will have on the United States economy and labor force.

Mike Durant once said, “Making it more expensive to create new jobs is a perfect way to guarantee fewer of them.” The recent, “Raise the Wage” campaigns have sparked an interest in many low-wage workers. However, those who support this initiative are unaware of the economic problems that will arise if this is successful. Several cities have already raised their minimum wages and some, like Seattle, are raising it as high as $15 per hour. Currently, supporters of this campaign argue that the government should implement this increase federally. However, doing so will have broad and adverse financial implications. Ever since the Great Depression, the minimum wage has been in effect — to reduce poverty and solidify that

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.

This paper gives an insight on the debate whether the minimum wage should be raised to $10 an hour or not in the United States. There is a big debate in the United States regarding as to whether the minimum wage should be raised to $10 per hour, but before we go into details of the debate lets first understand what is meant by a minimum wage and how did it come into existence. A minimum wage is the lowest wage that is paid to workers by their employers, and the government legally sets it. A minimum wage is a price floor, workers are not allowed to sale their services below price, and the government legally sets the price (Neumark et al 2008). Although the minimum wage is put into effect in jurisdictions, there exist different opinions

Although there is a great deal of disagreement about how to regulate the minimum wage in America, statistics indicate that the minimum wage has not been keeping pace with inflation. “The federal minimum wage is just $7.25 an hour and hasn’t been raised in three years. But a raise is much more overdue than that. If we look at the minimum wage 44 years ago, and simply adjust it for inflation, it would be more than $10 today.” However, there is tremendous resistance to raising the minimum wage, because of the belief that to improve the economic recovery, workers must be ‘cheap’ to encourage businesses to buy more labor. According to classical economic theory, as supply increases in the form of unemployed labor, labor prices should be allowed

Proponents of raising the minimum wage claim that if the minimum wage was raised, then many economic and social problems would be alleviated. This contention is at odds both with economic principles and years of creditable research. The effect of raising or even having a minimum wage has been studied extensively and the majority of studies have proven that raising a minimum wage does not have the desired effect. Both micro and macroeconomic forces affect the results of raising the minimum wage. The secondary effects of raising the minimum wage are bad both for

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

Although opponents claim higher pay will affect a number of factors, increasing the minimum wage will be ideal to lead economic activity to the right direction. The far most crucial concern for America today is the economy’s downfall and its position at its recession peak. Ralph Nader, a consumer advocate, and the author for “America’s Miserly Minimum Wage Needs an Upgrade” argues how increasing the minimum wage can lead to better off results concerning the market activity. Nader presents two studies to prove how effective the results will be regarding a raise to those paid at the minimum wage rate. The Chicago Federal Reserve study “showed that for every dollar increase in the hourly pay... the result was $2,800 in every consumer spending from that worker’s household” that year in 2011, according to Nader. In other words, a rise in pay will allow an employee to spend a greater amount of money for any needs, which is then put into the economy. The second study by the Economic Policy Institute “indicated that a $10.50 hourly minimum wage . . . increase” would stimulate economic productivity to about $30 billion and put 140,000 jobs over the course of two years (Nader). The numbers prove the effectiveness by showing an increased amount of money put into economic activity and its evidence of no negative outcome. Not only will a rise in pay stimulate the economy, but it will open an incredible amount of

For many decades now, 75 years since it was introduce, Americans have been debating over the concern of minimum wages and increases in those wages. Most people have a leaning to assume that when the minimum wage is increased people will benefit. They do not think of the consequences that come from increasing minimum wages. This paper is an attempt to explore, why minimum wages should not change, don't actually realize the implications of doing so. Let say the minimum wage is raised from $5 to $10 per hour, the people making $5 don't get paid more, and they lose their job, because they are only worth $5 per hour. Even in a perfect world, if no jobs were lost after increasing the minimum wage, the only thing achieved is a shift in the economy. yet again, if the minimum wage is increased to $10 per hour and everyone makes more money, then the purchasing power of that $10 drops to balance everything out, and that way nothing is gained. On the other hand, many people argue the opposite and that minimum wages should rise.