Minimum Wage Does Not Impact The Poverty Rate

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

The issue of the minimum wage has recently come to the forefront of the debate on social policy. There is much disagreement over the wisdom of an increase in the minimum wage in the current fragile economic recovery. Some argue that a dramatic increase is what is needed in order to lift the standard of living for those in the bottom of the economic pyramid. Economists reason that the basic principle of supply and demand mandates than an increase in the wage would result in the loss of available jobs. Small businesses maintain that it would spell their doom.

Considered to be a landmark, in 1938 President Franklin D. Roosevelt signed the Fair Labor Standards Act. The nation was experiencing social and economic development of judicial opposition and depression. This law set national minimum wages and maximum hours workers can be required to work. Incorporated into this law are overtime pay and established standards to prevent child-labor abuse. Consequently, in 1963 an amendment was made to this law, which prohibited wage discrimination against women.

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

Minimum wage is currently the standard for the lowest wage a worker can earn that is acceptable within the American society. The earliest debates began in 1938 when President Roosevelt signed the Fair Labor Standards Act that promoted “a minimum standard of living necessary for health, efficiency, and general well-being, without substantially curtailing employment” (“The Renewed Debate”); it was embraced by workers but opposed by upper level businessmen claiming it would hurt the economy. The debates have continued through the years with a

On Saturday, June 25, 1938, President Franklin D. Roosevelt signed 121 bills. Among these bills was a landmark law in the United States’ social and economic development—Fair Labor Standards Act of 1938 (FLSA) or otherwise known as the Wages and Hours Bill. This new law created a maximum forty-four hour workweek, guaranteed “time-and-a-half” for overtime hours in certain jobs, banned oppressive child labor, and established the nation’s first minimum wage. By definition, a minimum wage is the lowest wage permitted by law or by a special agreement (such as one with a labor union). Throughout the years, the minimum wage has been a central debate topic for the socioeconomic world and now in 2014, the debate has broken through the surface once

Mike Durant once said, “Making it more expensive to create new jobs is a perfect way to guarantee fewer of them.” The recent, “Raise the Wage” campaigns have sparked an interest in many low-wage workers. However, those who support this initiative are unaware of the economic problems that will arise if this is successful. Several cities have already raised their minimum wages and some, like Seattle, are raising it as high as $15 per hour. Currently, supporters of this campaign argue that the government should implement this increase federally. However, doing so will have broad and adverse financial implications. Ever since the Great Depression, the minimum wage has been in effect — to reduce poverty and solidify that

In the 1930’s a huge factor lead to the passage of income continuity, the Great Depression. During the Great Depression scores of businesses failed, and many workers became chronically unemployed (Martoccho, 2015). The Great Depression brought the demise of smaller businesses and forced many to work in the larger factories. Subsequently, these conditions lead to the passage of the Fair Labor Standards Act of 1938 (FLSA). Since 1938 the federal government has broadened the scope of the FLSA in 1947 twice through the passage of two acts: Portal-to-Portal Act of 1947 and the Equal Pay Act of 1963 (Martoccho, 2015). These acts are depicted to address the child labor provisions, minimum wage, and overtime pay.

Each year that the minimum wage figures stay stagnated at a specific number in nominal dollars, the reality of inflation slowly bites in as its real value is gradually adjusted and in the long run minimum wage earners are left with payments that cannot sum up or fulfill their household and other personal needs. On analysis of this fact, it is evident that the well-being and living standards of minimum wage workers is highly threatened especially for those people who have families and in this earning bracket. Currently, at a minimum wage rate of $7.25 per hour on a full time basis does not necessarily negate to the fact that they get to cross the estimated government poverty line on an all rounded annual basis. Comparing the current status and the 1960s value rates, the wage income is not enough to cater for the needs of a woman together with her family simply

Workers from around the world no matter the culture, country, or type of job believe that increasing the minimum wage would solve individual financial problems. It is important to know that this subject is not a black-and-white problem and can not be answered by a simple yes or a no answer. This article will be focusing on the minimum wage in America. Furthermore, we are focusing on the State 's minimum wage rather the Federal minimum wage. It is important to understand that the state 's minimum wage is different than the Federal. In some states it may be higher or lower than the Federal, and other states in comparison. Although increasing a state 's minimum wage would have a positive effect on individual workers, it may have a negative and long-lasting effect on the state’s cities and its economy.

Policymakers in the United States continually struggle to create viable and sustainable solutions to the poverty outbreak that is prevalent in our country. This has become a critical part of the road to recovery from the recent economic recession. One of the main approaches suggested to eradicate the pervasive poverty problem is increasing the minimum wage of American laborers. If adopted, this suggestion is expected to be implemented at both the state and federal levels. This approach is based on good intentions as it is projected to have positive effects on the employment, wages and overall poverty levels in the country. However, increasing the minimum wage will only hurt the low-income earners, less-educated and experienced

Low minimum wages affects everyday families and lives, more than the average person would think. A small minimum wage could have an very small effect on someone’s life, such as not being able to afford a new pair of boots or that new phone, contradictory to this low wages could also have a very serious effect on someone’s life . Meaning that a parent or single individual could not support their family because a lack of income, it could also mean the difference of living under a safe roof, or living in the streets. In 2016 alone, 40.6 million people in the United States

Increasing minimum wages cause people to need to lose their jobs. “Businesses will have to cut hours, hire and keep fewer employees, reduce benefits, and increase prices,” said Zack Hutchins, director of communications for the Business Council of New York State. Even though higher minimum wages sound amazing, many companies and businesses had to lay off many of their employees because of this. The people who support the raise and vote for it state that by doing this families can make end meet. However, Walter William, a professor at George Mason asked, “Is it likely that an employer would find it in his interests to pay a worker $15 an hour when that worker has skills that enable him to produce only $5 worth of value an hour to the employer's output?” As a result employers are less likely to hire inexperienced workers and teenagers and take away any chance for them to gain experience in the first place and leave them unemployed. If the minimum wage was $5-7 many more people would have jobs and experience.

Washuar and Neaumark’s study of the economic literature also found it “as largely solidifying the conventional view that minimum wages reduce employment among low-skilled workers” (qtd. in “Four Reasons”). A study conducted by Mark J. Hicks, the Director of the Center for Businesses and Economic Research and an associate professor at Ball State University, found that minimum wage increases on the state and the federal level, costed “roughly 550,000 fewer part-time jobs,” and “roughly 310,000 fewer teenagers working part-time” (qtd. in “Four

There are diverse advantages of applying the minimum wage laws both in the formal and informal sectors. Raising the minimum wages helps reduce poverty levels especially among households that entirely depend on the employment for their survival. Through the increased income levels, they are likely to advance their living standards and access diverse opportunities and resources ideal for their development. However, it is necessary that those laws have social security nets to ensure that the workers are protected from being fired or retrenched from their workplaces. If there are higher minimum wages established, the workers might lose their jobs, thus adversely affecting their living standards. In this situation, it is clear