Impacts Of A Minimum Wage Hike

900 WordsJun 18, 20154 Pages
Impacts to a Minimum Wage Hike in America 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? Several factors should be considered when determining a fair and equal wage across the labor force. Preservation of the existing labor force, while minimizing the impacts on a business being able to maintain their competiveness is a critical

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