Minimum Wage Argument Essay

Minimum wage has caused controversy throughout history between the two parties in government, the Democrats and Republicans, debating if they should increase minimum wage or not. Minimum wage was first established during 1938 under President Franklin D. Roosevelt (Sessions). The first act to enforce employers to pay its employees is the Fair Labor Standards Act which followed the Social Security Act (Sessions). Minimum wage started as twenty-five (25) cents per hour which doesn’t seem like a lot, but it was at that time (Sessions). The United States tended to raise the minimum wage when the standard of living changed. Since 1938, two other amendments were created to increase minimum wage laws even more. By 1961, minimum wage raised to $1.15 with another increase in 1963 (wages). Since the 1963 wage change, minimum wage created a trend of increasing yearly or every other year (Wages). From 2007 to 2009 minimum wage increased each year making the current minimum wage $7.25 (wages). Sine minimum wage has been established, Congress has increased minimum wage twenty-two times (22) (). Since minimum wage is supposed to change when the standard of living changes, then why hasn’t the United States government changed it since 2009?

Before people push a minimum wage increase, they need to be totally aware of all of the positive and negative results and consequences that might occur as a result. The issue concerning what to do about the minimum wage has served as an ongoing controversy amongst several people. The federal minimum wage should not be raised for several reasons including the harmful effect on small businesses, the increase of poverty, and the augmentation of competition for jobs.

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.

Although America is known as the richest country in the world, 43 million of its citizens are in poverty. Unfortunately, some of them work full time, yet are still in poverty due to the low minimum wage (“Should We Raise”). In 1928, the first federal minimum wage of 25 cents per hour was set by President Franklin D. Roosevelt to prevent workers from being underpaid. Since 2009, the federal minimum wage has been $7.25 (Smith). The age old debate of whether or not to raise it is still going on in the US. The federal minimum wage should be increased to keep up with inflation, help support the poor, and stimulate the economy.

In addition, having a minimum wage forces the bigger companies out there to share the wealth to the people who help produce it. American companies make billions of dollars and the least that they could do is share it with those who need the minimum to make it through their everyday lives. For example, McDonalds is a big company that makes an enormous amount of money that can afford to pay their workers who make their profit more than just the bare minimum. According to Zadrozny (2013), “Currently, approximately 3.6 million workers make at or below the federal minimum wage of $7.25”.

"According to a 2014 Congressional Budget Office report, increasing the minimum wage to $9 would lift 300,000 people out of poverty, and an increase to $10.10 would lift 900,000 people out of poverty.” Currently the federal minimum wage is $7.25. The government should raise the minimum wage to $9.25 per hour. We need to raise the minimum wage to the point where the lowest paid worker can afford their basic needs. Raising the minimum wage would strengthen the workforce and the economy.

I decided to write about how I felt regarding the federal government's involvement in controlling the minimum wage and that I felt they are disconnected in their understanding of the impacts on communities when they raise the minimum wage. I work for a manufacturing company in the U.S. and I understand wholeheartedly what the impact of salary increases due to our bottom line. In very competitive markets the difference between success and failure can be separated by the difference of only a few dollars per part, and while in other countries, their manufacturing bottom line is subsidized by their governments we are forced to generate profits the old-fashioned way through supply and demand. This is why I decided to take a stance in my persuasive essay and challenge the status quo of the Department of Labor and Wages. No longer should the federal government dictate a national minimum wage but should allow each state to establish their own minimum wage based on the economic condition of their counties and their state, as a whole.

$7.25 equals two gallons of gas, one fast food meal, or a simple school supply. With the minimum wage at the current rate you must work one hour to earn the seven dollars and twenty-five cents that only supply you with small necessities for everyday living. This problem was encountered before and was resolved with the agreement to higher the minimum wage from $5.85 to the current $7.25. Although that was a big increase in salaries, was it truly enough? This controversy can lead to a major change in everyone’s everyday lives and boost our economy to a period of prosperity. The minimum wage should be increased to bring our economy out of a recession, bring families together,

Minimum wage is the lowest amount of pay that employers can legally pay their workers. Minimum wage in the United States, is set at $7.25, the federal government takes out up to 12 percent of the whole payment for taxes. The Fair Labor Standards Act (FLSA) are the ones who have set the minimum wage from 1938 to the current year, 2017. The FLSA is a law that sets various labor regulations that includes interstate commerce employment, requirements for overtime pay, and the limits on child labor. Some argue that teenagers and low paying workers should be paid more than $7.25 dollars an hour, while others argue that they should suck it up and be thankful for what are paid. Researchers have stated that high minimum wage increases have helped bring the poverty level down in the United States. Other researchers have said that the level of minimum wage has little to no effect on the poverty level. Minimum wage is a happy medium that a company or organization sets for an employee; they use this as a starting point for an employee to receive raises and bonuses. Minimum wage is thought out to be by some a terrible thing because it is the reason our poverty levels are down, but with the minimum wage it has helped with economic growth.

Where to set the minimum wage has been a huge debate topic for years. The smallest increase or decrease can have a large overall impact on the economy. Do you think the minimum wage in California should be raised to $15 an hour? This is a question many in my home state are currently asking. California’s current wage is $9/hr., and the federal government is raising it to $10/hr. in January 2016. It may seem like common sense that if you have a higher minimum wage, then there will be less poverty. This is what I first thought when looking at this issue. However, Holtz-Eakin observed that a vast majority of minimum wage workers are in fact not living in poverty (Deutsch). Many minimum wage workers are not living under the poverty line, but simply

Do you believe that all jobs that require little to no skill deserve more than the federal minimum wage? If you said yes then perhaps you are unaware of the many negative effects surrounding a higher minimum wage and after reading this you will be educated on why the minimum wage should not be raised. In the beginning, the minimum wage was created with good intentions. It was originally established in 1938 and was $.25 an hour (Sessions). It was created to make sure that businesses would not take advantage over workers. While the minimum wage was and still is a good concept, it has some flaws. The major issue is that the minimum wage continues to be raised. The main reason for the increasing of the minimum wage is because people who make

Studies suggest that fifty percent or more of new jobs that will appear in the upcoming decades will require their employees to have a postsecondary education (America’s Promise). However, the rising price of a college education is preventing many students from achieving their goal. This only adds to the number of unemployed young adults and the number of Americans living in property. People always say if you’re tired of being poor then do something about it but it is not as simple as it used to be. In the past thirty years the cost of getting a college degree has increase by 1,120 percent (Mosbergn). Not only that, but if you do manage to get a degree after you graduate you are often left paying off student loan debt. As of 2013, the amount of student loan debt to be paid off has surpassed one trillion dollars. Another reason why many student opt out of going to college is because they believe it is a waste of time. While that may not be the case for all students a recent poll showed that forty percent of college graduates are unemployed and left struggling to pay off a student loan alone with no job

3.3% of Americans aged sixteen years or older earn at or below the minimum wage of $7.25 an hour. With an estimated 45 million citizens living in poverty, I will attempt to prove why we must increase the minimum wage to at least $10.10 an hour. In this paper, I will discuss the history and definitions of poverty and minimum wage as well as the pros and cons of implementing a higher minimum wage. I will also examine the economic and social effects of the minimum wage and how it pertains to our day to day lives. In 1938, President Franklin D. Roosevelt established The Fair Labor Standards Act or FLSA as a part of The New Deal. With this, a federal minimum wage of $0.25 was introduced. The act also provided overtime pay, a maximum workweek of forty-four hours, recordkeeping requirements, and a restriction on child labor. Before its passage, one in four children were working sixty hours a week for a median salary of $4.00 per week. Over 700,000 workers were affected by the Fair Labor Standards Act and Roosevelt called it the most important legislation since the Social Security Act of 1935. (Grossman) Since its introduction, the minimum wage has been increased twenty-two times by twelve different presidents. (Bose) The act was specifically intended for those working in manufacturing. Only about 20% of the population was covered by the minimum wage law. Other industries were exempt from the law due to concerns that it would restrict employment. The FSLA faced judicial opposition from the very beginning and has never been without controversy. The National Association of Manufacturers or NAM, denounced the new laws as “a step in the direction of communism, bolshevism, fascism, and Nazism.” (Cole) Many politicians and merchants vehemently opposed the Act and considered it an attack on traditional American values. Roosevelt addressed this apprehension in a fireside chat where he is quoted as saying, “Do not let any calamity-howling executive with an income of $1,000.00 a day, who has been turning his employees over to the Government relief rolls in order to preserve his company’s undistributed reserves, tell you […] that a wage of $11.00 a week is going to have a disastrous effect on all American industry.” (Tritch)

The debate over minimum wage increases has been a major political issue for decades. Some believe that a higher minimum wage will put more money into the economy and pockets of the lower classes. However; opponents believe that a minimum wage increase would do more harm than good. The Washington Post has published several articles on the issue, one of which being: “$15 is the Wrong Goal for Wage Warriors”, which doesn’t have a specific author; because it is a collaborative piece from the editorial board itself. The Wall Street Journal has also published an opposing article: “The Evidence Is Piling up That Higher Minimum Wages Kill Jobs”, written by David Neumark. The Editorial Boards main point of view is that the federal minimum wage should sustainably be increased, while David Neumark believes that a higher minimum wage would harm those whom the increase is meant to help; the unskilled. The Editorial Board’s

The minimum wage has arguably become the most controversial topic regarding our economy today, as it influences one of the largest classes of people within the United States, the working class. Federally, the minimum wage has not been raised in eight years, so it has stayed at $7.25 per hour for all non-exempt workers (U.S. DoL). The opinions on this topic are typically split across a progressive-conservative line, with progressives being in favor of a raise from $7.25, and conservatives wanting to stay at the current rate. This can be seen when looking at the typical progressive stances from states and municipalities that raise the minimum wage for businesses operating within their jurisdiction, since the higher rate among all levels of