Minimum Wage Debate Report

Rex Huppke, a writer for the Chicago tribune,writes about how raising the minimum wage may not be as positive to the society and economy as Americans are lead to believe. After interviewing many specialist and professors concerning this subject, he concludes that despite what other newspapers are saying raising the minimum wage could damage the economy. As an effect of what the media is saying this article was written to inform the public of the real cost of raising minimum wage.

Raising minimum wage has been an ongoing issue for many years. Similar to every debatable issue, pros and cons are inevitable. In the United States, minimum wage started when the Fair Labor Standards Act of 1938 (FLSA) was passed and minimum wage started at 25 cents per hour. The purpose of setting a minimum wage is to set a maximum workweek and to eliminate child labor. It is defined to be the least amount of money employers are obligated to pay their employees by law. As the years passed, the minimum wage began to increase to accommodate the growing economy. Although the wage has increased from a mere 25 cents per hour to $7.25 over the course of 75 years, living expenses are much higher causing many people to be poverty stricken (Debate.org). President Obama proposes raising the minimum wage, so that it would help minimize the income gap in America. However, most business organizations and the Republicans oppose to the idea, saying that it could potentially lead to more economic problems. While both sides have valid points, which one provides a more compelling argument? In the United States, the minimum wage should be raised in every state; therefore workers can have a more comfortable standard of living, lower the poverty line, and minimize the income gap.

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

The minimum wage debate brings about a range of reactions from different people. There are those who believe that there shouldn’t even be a minimum wage and that wages should be determined by the markets. On the other hand, we have those who vigorously argue for increasing the wage minimum citing inflation, the poverty line and worker productivity. Regardless, we do have a federal minimum wage rate in the United States at $7.25 per hour, with some states having a higher minimum wage than the federal minimum. President Obama, in his first state of the union address of his second term proposed “Tonight, let’s declare that, in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9 an hour” (The White House 2013). A year later, he has revised that number to $10.10 per hour after signing an executive order that has already raised the minimum wage for federal workers to that number. (The White House 2014). With more and more states raising their own minimum wage, a minimum wage increase seems almost imminent with Democrats and Republicans getting closer to a deal. (Bolton 2014). But we are more interested in the efficiency of a minimum wage implemented at the federal level. The main question that surrounds this debate is whether this price floor in labor markets is efficient given that the stated goal of the minimum wage is to make sure full-time workers earn a living wage and are above the poverty line.

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.

Barbara Mantel “Minimum Wage” According to Barbara Mantel she point out that nearly 47 million Americans, or 15 percent live in poverty according to the U.S. Census Bureau. Many opponents argue that raising the minimum wage will help many low-wage workers from middle class household who are employed part time many supports say many of those household who are struggling financially and would be group as poor if it was not for the government assistances. Further, many workers who are making minimum wage are employed in the food-services industry than any other according to the U.S. Bureau of Labor Statistics. However, many advocated imply that raising the federal minimum wage would help the low-come families by decreasing poverty rate and increase

A movement to increase the federally mandated minimum wage from $7.25 to $10.10 has been gaining momentum across the nation in recent months. Although the Senate struck down a bill that would have made the idea a law this past April, studies conducted by top economists and governmental agencies are finding it to be highly beneficial in practice. It has been over five years since the last change in the federal minimum wage, and the government needs to make adjustments for the modern economy. It should take action towards setting the new minimum wage to $10.10, even if in small steps.

A minimum wage is the lowest hourly, daily, or monthly wage that employers may legally pay to employees or workers. The debate over minimum wage in the United States has been ongoing for over 100 years. It is a hot topic in labor, human interest, and especially in economics. Is the minimum wage too low? Is it too high? Should we have one at all? Does having a minimum legal wage help those who it is intended to help, or does it actually make them worse off? Theses questions are asked on a daily basis by interested parties. While there may not be one definitive correct answer, there are compelling arguments on both sides of the issue, and those who represent their “side” are

Small business owners in the U.S are very controversial about raising the minimum wage. Even though, most of the small business owners said they do not employ minimum wage workers, half of respondents said the federal minimum wage should be raised while the other half disagrees (Janofsky, A., Josephs, L. (2015). Many cities in The U.S have voted to increase the minimum wage. According to research, many small business owners said they planned to raise wages this year (Janofsky, A., Josephs, L. (2015). Business owners who employed workers making minim wage said they would offer a $1 raise within one year. Overall, about 15% of small business owners said more than half of their workers earned the minimum wage.

Minimum wage in America to me is a debate that will be debated if there is money to be made. Minimum wage is necessary because without it, bosses would exploit workers the way they did before there was ever any regulations on working and wages. While minimum wage does prove to be effective in worker security, it can have some effects on our economy both positive and negative.

Minimum wage is the amount of money that the government says is the least amount that a business can pay to an individual. The debate on raising minimum wage has been ongoing for a long time. In my opinion minimum wage should not be raised. If minimum wage was raised then there would be higher unemployment because businesses wouldn't be able to afford hiring someone. Raising the minimum wage would mean that the businesses will pay higher than equilibrium price and this means that there would be a surplus. Whereas if the price was below equilibrium price than it would cause a shortage. A business would have to increase the price of their products or services. This would be known as inflation. This would lead the unemployment rates to go up because

The current minimum wage in the United States is a wage which Americans cannot live on. Americans are forced to live in poor living conditions because of the low wages they earn. The low wages workers earn result in poor healthcare because they cannot afford the proper treatment. The minimum wage leaves little, if any, for any unexpected expenses. The minimum wage in America affects American workers trying to make ends meet. The minimum wage needs to be raised and changed to the living wage.

Liana Fox, writer and member of the nonpartisan Economic Policy Institute, analyzes some of the myths that surround the increase of minimum wage. The article describes the challenges families face living off of minimum wage and how many live below the poverty line. Fox goes on to say, “On average, families with affected workers rely on those workers for over half (59%) of the families’ total earnings. Nearly half (46%) of all families with an affected worker rely solely on the earnings of those workers.” This article provides statistics that I will use to argue my point that the minimum wage needs

Minimum wage is a huge controversy in the United States of America because some people say that the minimum wage is fair whereas others that say the contrary. There is a massive gap between the poor and the wealthy. The middle-class group are also nowhere near the wealthy class, instead they are just above the poverty level. As a matter of fact, research shows that the middle-class group is decreasing and now there is mainly, the poor and the wealthy group. It is clear that the minimum wage should be raised for it to be enough to live on and to reduce the poverty line.

Minimum wage is the lowest wage that an employer is allowed to pay. This wage is regulated by the law, so all workers must follow this rule. According to the book, “Minimum Wages”, the author Neumark, David states, “in 1938, the U.S. Congress passed a federal minimum wage as part of the Fair Labor Standard Act” (Neumark 1). Since that time, the minimum wage has been regulating and controlling by the law. This minimum wage causes a bad effect to the economy because nobody wants to work with low wage. Therefore, the number of people who quit a job has been increasing, and because of this, the unemployment rate is going to be higher. This issue may cause a big impact to our society and economy in the near future.