Income Guarantee Schemes And The Developed Countries

The first federal minimum wage mandated by the government was in 1938. When the first minimum wage became law in 1938, it was set at just 25 cents. Today, the federal minimum wage mandated by the government is set at $7.25 an hour. “Many states have their own set minimum wages, which are currently above $7.25 per hour already. Currently, 29 states and the District of Columbia (D.C.) have minimum wages above the federal minimum wage of $7.25 per hour. D.C. 's new wage of $10.50 an hour makes it the first jurisdiction to cross the $10 threshold among the states,” (Halvorson). The last time that the federal minimum wage mandated by the government was changed was over 8 years ago. “The last time Congress voted to raise the minimum wage to its current rate of $7.25 an hour was on May 24, 2007. Since then, the cost of life 's essentials has shot up. Groceries cost 20% more, a gallon of gas costs 25% more, and average tuition at a community college increased 44%. But the minimum wage remains at

The United States has a history of changes to the minimum wage law. “Early in the administration of the FLSA (Fair labor Standards Act); it became apparent that application of the statutory minimum wage was likely to produce undesirable effects upon the economies of Puerto Rico and the Virgin islands .In 1949, the minimum wage was raised from 40 cents and hours to 75 cents an hour for all workers. A 1955 amendment increased the minimum wage to $1.00 an hour with no changes in coverage. The minimum wage increased to $2.00 an hour in 1974, and $2.10 in 1975, and $

Concerning the wage rate, the United States government has intervened to maintain a lower limit on the hourly wage rate of a worker’s labor by implementing a price floor known as the minimum wage rate. This legal floor on the market price of labor sets a minimum hourly pay rate for workers in the United States. Effective July 24, 2009 the federal minimum wage rate is $7.25; in states that also have minimum wage laws the employee may be subject to both federal and state minimum wage laws, in which case they are entitled to the higher minimum wage rate (U.S. Department of Labor Wage and Hour Division, 2011). Since the Fair Labor Standards Act (FLSA) was created in 1938 the federal minimum wage rate has gradually increased from $0.25 in 1938 to $7.25 present (U.S. Department of Labor Wage and Hour Division, 2011). Although continuing to increase the minimum wage rate may include potential positive factors, it would hinder the U.S. economy overall.

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

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.

In 1938, the first national minimum wage laws in the United States were passed as part of the Fair Labor Standards Act, which served as “a floor below wages,” to reduce poverty and to ensure that economic growth is shared across the workforce. Today, many people who work for companies that pay at or near the minimum wage and remain near or below the poverty level rely on government health and food security and income programs to supplement their living expenses. Since 1938, there have been many additional policies to the Fair Labor Standards Act that have changed many things, such as increasing the national minimum wage numerous times to the currently salary level, which was set in 1997. The Fair Minimum Wage Act of 2007 was a policy to change the federal minimum wage from $5.15 to $7.25 in three additions, which began in July of 2009. (http://www.dol.gov/whd/regs/compliance/posters/minwagebwp.pdf)

In any given population, there is a difference between what people within the population earn. The uneven distribution of income in any given population is income inequality. In order for there to be income, there has to be several sources of income. These sources of income may be combinational or independent per person receiving the income. Income may result from wages, rent, bank account interests, salaries or even profits made in business transactions ( Stiglitz, 2012).

In the United States, the minimum wage was passed during the Great Depression in 1938 to protect the buying power of normal workers in a period in which the “unemployment rate was still a very high 19 percent” (Sklar, 2009, p. 1). Since that time, there has been significant debate about the controversial topic of raising the federal minimum wage. The federal minimum wage law was created to eliminate unfair practices of sweat shops and manufacturing companies during this time period. Thus, the minimum wage is defined as the smallest salary that an employer is legally allowed to pay employees for their work. Since the time of the Great Depression, minimum wage has been utilized to guarantee that employees are paid

The history of the Federal minimum wage dates to 1938 when then President Franklin Delano Roosevelt signed “the Fair Labor Standards Act (FLSA)” into law (History of Minimum Wage). Franklin Delano Roosevelt signing the FLSA into law made sure that no American could be paid less than the federal minimum wage. The initial minimum wage was set at twenty-five cents an hour back in 1938. However, prior to Franklin Delano Roosevelt signing the Fair Labor Standards Act into law there was not any “national minimum wage, or…legislation to protect workers from exploitation. [Due to] lack of regulation tens of thousands of workers were routinely exploited in sweatshops and factories…for pennies a week” (Minimum-Wage.org). Which made covering day to day

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.

In 1938, the first national minimum wage laws in the United States were passed as part of the Fair Labor Standards Act, which served as “a floor below wages,” to reduce poverty and to ensure that economic growth is shared across the workforce. Today, many people who work for companies that pay at or near the minimum wage and remain near or below the poverty level rely on government health and food security and income programs to supplement their living expenses. Since 1938, there have been many additional policies to the Fair Labor Standards Act that have changed many things, such as increasing the national minimum wage numerous times to the currently salary level, which was set in 1997. The Fair Minimum Wage Act of 2007, from the United States Department of Labor Wage and Hour Division, was a policy to change the federal minimum wage from $5.15 to $7.25 in three additions, which began in July of 2009. (U.S., 2009).

Minimum wage introduced by the congress as the subdivision of the Fair Labor Standards Act (FLSA) in 1938. At that time, congress set the minimum wage at 25 cents an hour. According to Tricia Hussung, Business Analyst, in 1968, adjusted for inflation, the federal minimum wage

In this globalization era, as various countries see growth in their economy, there has also been significant differences in the wages set to employees in different countries. The lowest wages set by the law that are fixed to a particular amount which is also defined to be the price floor below which workers shall not sell their labor, has its own effects. The minimum wage law came into force as a matter of social justice amongst the low-wage workers, also to reduce exploitation and see that workers can afford the standard basic living expenses and necessities, not to increase the unemployment rate, indeed to increase the employment rate.

Government policy and norms are very important to insure equality in any society. The distributions of resources are not equal among individuals of society than how the equality in society can be established. Governmental intervention is required in this issue to robust the sources of survival and strengthen the income generation activities. One of the major solutions of this issue can be financial inclusion. According to Bigsten & Levin (2000) it is not necessary that the economic growth of any country will surly benefit the marginalized people in society. It is determined by the government policy and norms that the benefit will reach to the lowest segment of the society. In this research paper we find that GDP growth in urban areas and growth

Income redistribution refers to the concept of transferring income from the wealthy individuals to the less wealthy individuals through social mechanisms such as monetary policies, charity, welfare, land reforms, and taxation among others. Income redistribution affects the entire economy rather than selected groups of individuals. The concept of income redistribution emanates from the existence of income inequalities within an economy. Income inequality depicts a gap between the highest and the lowest income earners in an economy (Tullock 13). Income inequality is sometimes considered appropriate in societies since it acts as an incentive in free market economies, whereby in the absence of inequality, elements of economic stagnation and lack of enterprise would emerge. Conversely, income inequality is criticized on the basis of introducing contributing towards the development of key problems in the society, including progression of poverty levels. This paper seeks to explore the concept of income redistribution and its key pros and cons.