To begin, there is an extensive debate over whether if the U.S were to raise minimum wage, could it really help the working poor of low income families. Nancy Cook, in her article from the National Journal, “Why a Minimum-Wage Hike Can’t Help the Poor”, she points out that two thirds of around 100 surveys from 2007 had a negative effect and that it does more for the middle class than the lower one. (p.14). So, therefore, from her
One of the biggest political topics in today's society is the federal minimum wage and whether it should be raised or kept at where it is now at $7.25 an hour. Arguments could be made for both sides on whether it should be raised or left alone. The majority of minimum wage in today’s job market are unskilled positions. Minimum wage jobs were created for teenagers and colleges kids as a way to get into the workforce and to have a little extra money for themselves. It was not designed to be a wage for people to live on. Increasing the minimum wage would hurt the economy by hurting small businesses, a huge loss of jobs and it would increase the competition between teens and adults. Overall if the federal minimum wage is increased it will have many negative effects on the economy.
There are a lot of people around the world who struggle with money and a satisfactory way of life. Whether they be in the United States or across the globe, there is a standard minimum wage set for the working class of their country. In the Unites States, there is a federal minimum wage of seven dollars and twenty five cents per hour worked. Almost every state has another set minimum wage, which typically is a little higher than the federal minimum wage, but it cannot be lower than seven dollars and twenty five cents. Countries set minimum wage laws, to ensure there is a basic quality of life amongst its citizens. As the minimum wage goes up in certain states, the quality of life also improves. The problem with a higher minimum wage, is now people are getting paid higher for entry level jobs which are meant for teenagers and people new to the workforce. If the minimum wage keeps increasing across the country, teenagers and young adults will have a much more difficult time finding jobs.
If this is indeed the case, the raising of the minimum wage does not positively affect the poor, but reduces the ability of the poor to purchase the necessary items needed to survive. If the employer must increase the wage of its entry-level workers, there is virtually no chance they will be increasing the wage of the workers just above the minimum wage level. Therefore, the increase in the minimum wage will reduce the buying power of the poor family by increasing the cost of goods required to
It is very important to look beyond the workers that will be affected directly by raise of the minimum wage. Instead, look how it affects every single group in the work force.
According to the American Enterprise Institute, it is stated by president Obama that increasing the minimum wage: “would alleviate poverty”. The president is certainly correct, this wouldn't help everyone. As the information given: only 11.3% of the people will get beneficiated by this raise. Why this? People who don’t work are the ones in poverty; and because firing some its workers, there will be more poverty than there was before. And if the case is that a company keeps their employees… the people
Even though having a minimum wage helps in many ways and keeps a minimum to what people can work for, it also can do some harm. The minimum wage law does cost the economy thousands of jobs. The essential principle of economics is supply and demand and the minimum wage aspect goes hand in hand with it. In the sense of labor, this means the amount of workers increases and wages increase, and the demand for employees by employers’ decreases as the wage increases. For instance, if an office cleaning job was publicized for hiring. If the wage was $90 per hour, many people would be interested in taking the job. However, if the income was $2 per hour, there most likely wouldn't be anyone to want the job. On the contrary, if the government obligated the owner to pay at least $9 per
The minimum wage is one of the most controversial issues on our country, which is United States has been facing last ten years. There have been never ending debates over this issue until the government, company, and others party stand together, and raise the minimum wage throughout the nations. There are communities that believe raise the minimum wage has negative impact of every sector of the country. Other communities have different beliefs over the issue, raising the minimum wage helps the poor people, and would help not hurt our economy.
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
Labor unions have existed in one form or another in the United States since the birth of the country. They were created in an effort to protect the working population from abuses such as sweatshops and unsafe working conditions. On the other hand, they have also been accused of crippling industries and consorting with organized crime over the decades. But in one way or another, labor unions have been
Raising the minimum wage has multiple benefits. As an increase to minimum wage moves families above the poverty threshold, their need for public assistance decreases. As wages increase, a family’s purchasing power increases for
Research shows if minimum wage was to climb that it would hurt the least skilled and the least experienced people trying to seek a job the most. There are different of opinions people believe in about the positive and negative aspect of minimum wage. Supporters argue that such a boost will shrink poverty without plummeting jobs and that it will boost confidence, increase the normal living, and cut inequality and have businesses to be well-organized. Opponents that are not for minimum wage say it will increase poverty, unemployment and is not good toward businesses. The question about minimum wage and the effects it would cause if it was to rise, remains one of the most commonly studied topics.
Unions do provide a lot of good services to its members, such as higher wages, better hours, more benefits, and safer working conditions. There is a price to pay for these services, though. Every union requires its members to pay dues, whether they are in the form of a percentage of each paycheck, or a flat rate. The money form dues goes towards lobbying politicians to pass union-friendly legislation, or better labor laws. The money also finances officers in the union organization, who are the ones calling the shots, as far as labor negotiations are concerned.
Those who support raising minimum wage aruge that it would be profitable because many americans who rely on public programs for living would no longer have to. Almost half of the people who make minimum wage depend on some type of public program that they recieve benefits from. Raising minimum wage would reduce the money spent by the government on those programs. On the other hand, with minimum wage, people are motivivated to get promoted to higher pay. If promoted, people who once made minimum wage would not, resulting in no longer relying on public programs.
In this economy for one to be considered an independent, they should be working and have a source of income, however the jobs that are present do not pay a living wage. This means the employees are paid for their standard labor, which means the employees are living check to check and they are not saving any money in case of an emergency. In the recent article “Sorry Advocates, the Minimum Wage Debate is Not Over” In Forbes article it illustrates the big debate between the benefits and the cons of the minimum wage and the biggest concern is that it causes job losses in an area that people are moving to new places looking a better job that pays a better minimum wage. With this being done businesses are not having employees and causing them to shut down. Although, some people live on living wage, some people have full time jobs that help provide them with full benefits such as health insurance and contribution to their 401k and for them to be protected, the labor unions help with their protection. The main duty is for them to bargain collectively for their employees, which means they have the right to go on strike if the they feel as if their wishes are not being met by their employees. This is considered important, however in the current economy Labor unions have decreased in that the industrial work has decreased and most of them have gone overseas. If the company is not listening to the labor unions then the Occupational Safety and Health Administration (OSHA) can get