During the past five years or so, the minimum wage in the United States (U.S.) have been a topic of interest for many parties. On one side, the parties that oppose an increase in the minimum wage believe that an increase will spark an epidemic of high unemployment rates. On the other side, the parties are asking for an increase in the minimum wage for many other reasons, including help lower the poverty levels, afford health insurance and higher education among other needs. Throughout the U.S., the inequality of wages and compensation have been a problem for some time. Despite the large, diverse workforce in the country, the policies that govern the minimum wage should be revamped so that all workers are equally compensated. Of course, employers and some policy makers will argue that an increase in pay will have an adverse effect on employment, whereas an increase in the minimum wage will be more harmful rather than helpful. However, instead of revising these policies annually, or even two to three years to observe the reaction of the employment rate, it is always best to just say, “It just won’t work”. Imagine if the workforce in major cities in the U.S. felt the same way and decides to go on strike, all at the same time; the outcome will be devastating. In 2013, the federal government tried this for about two weeks through the furlough of federal workers, believing that the country will benefit from doing so. Turns out, multi-billions of dollars were lost in just this
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The minimum wage debate has been a hot topic over the past year, especially with the Presidential Election. This is a divisive topic that people rarely agree upon. There are essentially two sides you can take when it comes to this argument. Either people are for minimum wage or are against raising, or even having, a minimum wage. Proponents of the minimum wage are typically politicians who are lobbying for the vote of the people who feel that a minimum wage is critical to their wellbeing, and those who sympathize with people who earn “minimum wage”. Minimum wage is destroying America’s free market economy and someone needs to take action and find a better solution to this problem. Without anyone acting on this problem now, it can potentially be worse in the long run. Raising the minimum wage in the United States will do more harm than good to society because of the long-term effects.
Minimum wage has always been a controversial issue. Many politicians use the argument of minimum wage for their own political propaganda. Some may argue minimum wage should be raised, while others believe it will have detrimental effects on our economy if it is raised. Surprising to most people, minimum wage earners make up only a small percent of American workers. According to the Bureau of Labor Statistics, minimum wage workers make up about 2.8% of all workers in America. “The majority of minimum wage workers are between the ages of 16 and 24. These are high school and college students” (Sherk 2). But high school and college students are not the entire percentage of minimum wage earners. When minimum
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
The minimum wage is a political issue on many levels with consequences that are predictable, as long as politics controls the choices of this issue. Minimum wage comprises of receiving around $6-7 dollars per hour and the question concerning whether “the standards and guarantees are still being met” is still in the air. The Fair Labor
The topic on whether the minimum wage should be increased our untouched has been a hot topic in the media and political scene lately. Both the republicans and democrats have spent some big bucks lobbying their insights on the matter. There has been a lot of subjective and objective arguments that are reasonable on both the pros and cons of increasing our national minimum wage. To add to the drama associated with this topic, President Obama endorsed a bill proposing a nearly 40% rise from $7.25 to $10.10 per hour. The President has been campaigning around the country ever since his State of the Union address, pushing congress to raise the minimum wage to $10.10 an hour. Many say this is too high due to the costs of enacting such an increase, and many say this is a little low due to the increased cost of living. After looking into both sides of this debate, I realize that overall it would be better for the well-being of our nation to increase the minimum wage due to the short term and long term costs that an increase of the minimum wage could lead to. In terms of helping out the lower class and poor citizens of the United States, increasing the minimum wage level is not the answer.
In the summer of 2014, legislature intended to raise the current minimum wage floor of $7.25 in the United States stalled in Congress. As the November election approaches, many Democratic senate members are placing the issue of minimum wage at the forefront of their election campaigns, hoping to sway working-class voters in their favor. The issue of minimum wage has become a matter of politics, politics which far overshadow the far more pertinent concern of minimum wage’s economic effects. Minimum wage is a complex issue, and understanding both the benefits and harms associated with minimum wage is critical to making an informed political decision, a decision hopefully substantiated by economics.
“Raise the wage!” reads many protestors’ signs across America. Many people believe this to be the answer to the financial inequality that plagues our country. The federal minimum wage was established to keep workers from settling on a poor living standard (Leonard A.11). Since this was passed, multiple debates and issues have risen. One begins to ask the question, is this truly the best way to resolve the unequal distribution of wealth? After research, it has been found that there are many drawbacks that are related to raising the minimum wage. Because of the number of harmful, detrimental, disadvantageous effects of increasing the base pay, the country should not continuously raise it.
Specific data from each state were examined to find if it would better for the federal government to impose an overall minimum wage policy for the entire country or should each state establish its own minimum wage policies. This quantitative study used a poll statistical analysis to measure which U.S. working class supports an increase in the minimum wage. Additional, their data from the Bureau of Labor Statistics (BLS) estimates that out of the 146 million workers in the U.S., about 16% earns $10.10 or per hour. Roughly about 20% of the working population in at least 15 states earns less than $10.10 per hour. The findings portray that an increase in the minimum wage, will have a slightly higher negative impact on low income wage workers, than the normal estimated job losses. While not everyone earning equal to or less than $10.10 per hour will lose their jobs, the number of job loss is significant in some states; some more than others will be hit hard with unemployment. The article addresses that there is a problem with the minimum wage not being regulated more often, and that each state should adopt their own policies to set the income limits. Therefore, the authors made a compelling case that each state should develop its own wage
In 1938, The United States enacted a minimum wage law under the Fair Labor Standards Act that made employers pay their workers at least twenty-five cents. The law was intended to reduce the amount of Americans living in poverty and keep track of unjust business practices. Still to this day, we Americans argue over the controversy due to low minimum wage and high inflation rates. The deregulation of business and the inconsistent government policies have led to an alarming problem, the minimum wage isn’t enough for Americans to live off of nor is it doing its original purpose by getting citizens out of poverty.
In recent years, the discussion of whether or not to raise the minimum wage has once again surfaced as a popular topic of deliberation among U.S. policymakers. Serious thought is being given to the suggestion of increasing the federal minimum wage “by more than thirty-nine percent [from the current rate of $7.25 per hour to a proposed $10.10 per hour] and mandating automatic increases every year by the rate of inflation” (Alexander, 2013). This new proposition is receiving its share of both support and criticism. Maybe the important question we should be asking, however, is if this new increase is approved, will this time differ from previous attempts and actually benefit those whom it is intended to help?
Did you know minimum wage was $0.25 per hour in 1938? Since then it has raised to a whopping $7.25. Most readers will agree that there is a problem with this current minimum wage, considering the cost of living and salaries, Etc. However, they might not understand the complexity of the issue. In fact, the topic is not simply a question of if the minimum wage should be increased or kept the same, but more of a complex issue involving the different viewpoints on why people agree or disagree. Some reasons why people might agree is: decreasing poverty, increase in government aiding, and cannot afford basic needs. In opposition, opponents of the minimum wage might say it increases poverty, increases unemployment (specifically among unskilled or
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
The status quo surrounding the minimum wage leaves many on both sides of the liberal republican spectrum unhappy. This frustration, with what President Obama would call an “unjust status quo” partially explains why the minimum wage has come to the forefront currently. The current federal
On an annual basis, workers who work full time at a job that pays the federal minimum wage make $12,920 before taxes. Considering this level of income is at the borderline of the federal poverty level of $11,770, many in the U.S.- low wage workers, farmers, and even economists- are calling for a reexamination of the minimum wage policy. The purpose of minimum wage laws is to ensure lower-class families receive a living wage which enables them to live with dignity. Advocates of minimum wage hike question if the current minimum wage level is serving its intended purpose. This report will investigate the rationale and implications of raising
The supply and demand factors show significance towards growth of unemployment. It has been observed that the price floor above equilibrium wage should cause unemployment. There are many people who have provided their arguments against the fact. However, it has been observed that whenever there has been a rise in the minimum wage of workers, unemployment rate goes very high. For example, an organization has to maintain its expenses as well as its incomes. Due to rise of wage, Companies can become more selective. This situation is not appropriate because it excludes the low skilled employees from employment opportunities. Since full-time workers could get affected due to the minimum wage laws, it has been deemed necessary that the increase of minimum wage is not done. Furthermore, with the rise of minimum wage, greater number of people would show their desire to obtain jobs towards the minimum wage however there would be lower number of opportunities to get employment. This factor would result in maximum number of unemployment cases. Due to the rise of minimum wage the quantity of the number of low skilled workers would fall and finally it would affect the economic growth and stability of a nation.