Minimum Wage Advantages And Disadvantages Essay

During all the history of minimum wages a bunch of studies were made to analyse the effects that the minimum wage changes can bring to employee’s life. In the oldest studies, the institutions that worked on it couldn’t find a significant change on the employees, job searches and employee’s behaviours. The only fact that was noticed was the

The minimum wage requires employers to pay their employees a minimum amount of money which is based on the current version of the law, which is raised every year to adjust the living costs. There are some advantages and

The argument for minimum wage has remained remake consistent over the years. Some people are against minimum wage and the other think minimum wage can help you in a certain way. In the midst of the Great Depression, the Unites States federal government passed the Fair Labor Standards Act. The law has been amended almost every year to expand coverage of the wage floor and to increase the wage itself. Many of the fifty states have enacted their own minimum wage laws, some of them set even higher than the federal level. Minimum wage jobs don’t only help adults at hard times it help teenagers and college students. I learned that the proponents for minimum wage believe the raw value of one’s labor to a business

When you picture a minimum wage worker, who do you picture? Do you see a sixteen year old, a middle-aged mother, a college graduate, or even a senior citizen worker? In September of 2013, California governor Jerry Brown signed a new bill into act that would cause the California minimum wage to rise from the current $8.00 and hour to $10.00 and hour in increments over the next three years. The minimum wage rate will go up in two separate $1.00 boosts. The first will change the rate from $8.00 to $9.00 in July of 2014, and the second increase, to $10.00, in January 2016. In this paper, I will discuss, compare, and weigh the pros and cons of the minimum wage increase in California.

Raising minimum wage has been a debate for quite some time. This Essay will go over Pros and Cons. I will research both sides of this ongoing debate. Listing a few from each side. Coming to a conclusion that raising minimum wage is what would be best for the citizens of the United States and for the economy.

There are 156. 4 million people in the US workforce, however 5.2% of those are unemployed. The federal minimum wage is $7.25 an hour; however, each state has its own laws regarding minimum wage and the amount can be higher or lower than the federal minimum, but the employee receives the higher of the two (2015). A higher minimum wage means that employers are less apt to hire someone. Some experts explain this by saying that if an employer values the job at a lower wage per hour than the minimum wage set by the government, then the employer is less likely to hire someone to fill that role. The employer only wants to hire someone when that person will be able to generate some sort of value for the company and positively affect the bottom line. Another problem with a high minimum wage is that potential employees are less likely to want to work if they are able to receive unemployment benefits from the government that will almost equal that which they would receive from working a minimum wage job (Gillikin).

How come lets say in this state you get paid $3.00 and at a different state but same job you get paid 8.00$. It's not fair that people get paid more in different states for the same job.

A minimum wage is the lowest hourly wage that employers have to compensate the workers for their service. Currently the federal minimum wage is $7.25 per hour. However, many states also have their own minimum wage laws. In those instances, the employee is entitled to the higher of the two minimum wages. In this paper we will discuss the brief history of the minimum wage law and its current legislation. We will also analyze the pros and cons of raising the minimum wage, and the merits of each argument.

The idea of minimum wage is that workers are guaranteed enough money to live off of. The price of minimum wage is determined by the state, but a federal minimum wage is set. Some states choose to go above the minimum wage, while others, such as Alabama and Louisiana, choose to not have minimum wage at all (Root). Minimum wage is important to society, because it can affect many people’s lives. There are many pros and cons to having minimum wage in the United States. Furthermore, various stakeholders are also impacted by this policy in numerous of ways. Minimum wage is a microeconomics and macroeconomic problem that has many consequences. Therefore, minimum wage has been a great economic issue because of people’s support and opposition to the policy.

In 1930 the United States passed a federal law controlling minimum wage. This has led to random increases in minimum wages. For more than a century minimum wage has been a key factor in public policy. Minimum wages were first used to prove against the idea of American factories being “sweatshops” (Josh Barro 01). Over time the minimum wage level has risen and fallen do to the progress of the economy. The amount of money earned from a minimum wage salary today is thought to not be enough to live a regular life (. "Four States Vote to Raise Minimum Wage." 01).

If it costs more to pay low-skill employees, than employers could replace 2-3 employees with 1 skilled worker who can multitask and perform the job at hand well. Another thing to think about when considering raising minimum wage is healthcare. Many workers would rather make less on the hour and be able to have company sponsored insurance rather than make more on the hour and have those hours cut back and left to get Obama care exchange for insurance that they may not need. One more factor to consider is that supporter’s of this debate is that raising minimum wage will reduce poverty and homelessness. According to Forbes roughly 60% of the homeless do not work, the only thing raising the minimum wage does for them is make it harder to obtain a job (Dunkelberg 1). Therefore not only does raising minimum wage eliminate jobs from people but it does not help reduce poverty

"If we took away the minimum wage, we could wipe out unemployment completely because we would be able to offer jobs at every possible skill level."

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.

“Paying your employees well is not only the right thing to do, but it makes for good business”-Jim Sinegal, CEO of Costco. Many of America’s employees are not being paid well, however, for the annual income of a full-time employee who works year-round is less than $16,000 (about $15, 080) according to the current federal minimum wage (Rebuilding). To put into retrospect how out-dated the federal minimum wage is, consider that the minimum wage of 1956 amounted to exactly $7.93 in 2009 (Henderson). How progressive is it that our nation’s workers being paid less today than workers from the 50’s? The federal minimum wage should be raised in order to assist families out of poverty, to ensure the effort and loyalty of workers, and

I agree with this article, written by Niels Veldhuis, to the extent that minimum wage negatively affects the economy, by increasing unemployment. However, if I were Veldhuis I would have added that the social values of minimum wage may outweigh the negative effects on the economy. This matter is a value judgement, which cannot be proved right or wrong by economics. Veldhuis supports his statement with proof from studies; I will explain these findings with further microeconomic theory. I will discuss the following to reflect upon the accuracy of his arguments: theories of producer behavior and cost minimization, market equilibrium, welfare, and the importance of value judgements.