Minimum Wage Analysis

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The minimum wage for Texas is $7.25 and the chart does not show it going up any time soon like other states. In 1938, Congress began the minimum wage at 25 cents per hour, according to the Fair Labor Standards Act, (Sherk, 2013). The federal minimum wage was signed into law in 1938 by President Franklin Roosevelt during the Great Depression. The main purpose for the federal minimum wage was to help keep the American workers out of poverty and increase the purchasing power for the consumers in order to help the economy. The United States should only use the federal minimum wage in each state because each state cost of living is different and they may or may not have what the other states have to offer. Twenty-nine states and the District …show more content…

The Democrats and the independents were in favor of increasing the federal minimum wage, but the Republicans were evenly split about that proposal. The efforts to raise the minimum wage from $7.25 per hour have stalled but Los Angeles, New York state to Washington, D.C. have started to act on their own to raise the minimum wage rates. In order to achieve a good balance in income distribution, the government try to stop the rich from getting richer and the poor from getting poorer. This is the way the federal and state governments balance income distribution and keep the minimum wages laws the way they are. Another study examined how teenage employment and school enrollment changed after states raised their minimum wage (Neumark and Wascher, 1996). The minimum wage determines what the employers can pay for labor. An increase in job loss is a reason for not increasing the minimum wage in New Jersey. “Los Angeles lawmakers Tuesday voted to boost the minimum wage to $15 an hour by 2020, the largest city to try to help its lowest paid workers survive amid the nation’s growing income inequality” (Winter, USA …show more content…

Most companies use this method of outsourcing to save money. There are some positive and negatives to this aspect of outsourcing in the developing nations. The companies are not being fair to their employees internationally. They do not have to provide medical insurance and benefits and they do not have to pay their employees the minimum wage. Several states updated their minimum wage requirement during the last decade. In the year from 2001 to 2003, Hartford and Meriden, Connecticut, Gainesville, Florida, Minneapolis, Burlington, Vermont, all required their city contractors to pay a wage of at least $9 if no benefits are given (McCrate, 2006). The minimum wage appear to be negligible compared with that of the U.S. The foreign companies that are competing with each other for outsourced manufacturing or service jobs are getting even lower wages. Many developing countries do not have a minimum wage requirement for the companies they are working for. United State wage and hour laws have no extraterritorial application. If a US citizen is working in France, then they would not be subject to any state or federal U.S. wage and hour laws. They would be limited to the number of hours they could work like only 35 hours per week in France. The continued abuses by the corporations not only hurt USA workers, our nation as

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