The debate about the minimum wages or what is the lowest amount the employer can pay to his worker has been a big concern in US since the 1938 when the first federal minimum wage law was introduced. The Fair Labor Standards Act of 1938 has set the federal minimum wage at $0.25. Adjusted to inflation it would worth around $4.13 today (Kurtz, 2013).
In today’s economics minimum wage is used as a price control or price floor that the government enforces. A price floor is a minimum price for a product or service above the market’s equilibrium price. Selling any product or service sold below the price floor is considered illegal. Since the price of a commodity or service is increased the demand will go down lower than the quantity supplied creating a surplus. This theory also creates a surplus in employment. When minimum wage is increased or a price floor is set there will be a surplus of employees and the demand for workers will decrease. Well in order to accurately determine whether the minimum wage employees are receiving is enough to maintain a minimal lifestyle, we must first understand how the minimum wage is calculated. According to the United States Department of Labor, “federal minimum wage for covered nonexempt employees is $7.25 per hour effective July 24, 2009. The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA).” The Fair Labor Standards Act is a set of standards pertaining to youth employment, overtime pay, and other laws that affect employees within private and public
In 1938 congress instituted minimum wage with 25 cents an hour being the first wage. After 78 years seven dollars has been the increase of minimum wage, stated by the article listed on, Heritage.org . Every year the cost of living and surviving in this country increases. You would think after 78 years, minimum wage would not be at $7.25. Many college students work part-time jobs that pays minimum wage to have some extra cash in their pockets or pay a few minor bills. Having a part time job is perfectly fine in college, but imagine not being in college, working a minimum wage job. Lets be honest, the pay checks are no where near what you would like them to be or it isn 't enough to cover everything that you want or need. So, imagine not being in college, working a full time job, with rent, children, car note, insurance, and etc. Many adults work minimum wage jobs, barely making it to provide for themselves and their kids. Your probably thinking, "maybe those people should go back to school or look for a better job.” Yes, that is true but for most people, its too late. A better job requires a degree, most people have kids and cant afford to take a couple of hours off or get someone to watch their kids while they attend school, so a minimum wage job is the only option. So, to make a better life for the struggling parents and the needy college students, increasing the minimum wage is a must for various reasons which include decreasing poverty, increasing health, and relieving
We all need money. We need it to buy food or to pay for bills in adult life. It is a necessity for us to survive in this world. The minimum wage law was introduced in 1938 during the Great Depression as part of the Fair Labor Standards Act. These laws require employers to pay an employee nothing less than a set amount . The first wage set was 25 cents per hour, and recently in 2009 to $7.25. Congress only raises the minimum wage when the economy is healthy, mainly when there is low unemployment (Sherk). Ultimately they should not increase the federal minimum wage. It hurts the less fortunate, it keeps people below the poverty line and creates unemployment.
The federal government issued the fair labor standards act. This act made it so all employers were required by law to pay their workers a minimum pay of $0.25 at that time. Minimum wage was also made to help the people as stated in the article, “Purpose of minimum wage”.Written by the labor law center, the minimum wage payment would be enough for an employe to afford basic needs of living. It was said that minimum not only prevents poverty but overcomes it. Each state has their own minimum wage but it can’t be lower than the national minimum wage of $7.25. States have their own minimum wage because not all states have the same cost of living. So minimum wage was created in 1938 as a way to overcome poverty, provide enough money for basic needs and be a fair amount of pay for employees throughout
Is the minimum wage too low? Can it support families these days? Minimum wage should be raised for more affordability because of all the rising rates these days. Increasing the minimum wage allows adults and parents to afford an apartment. The rise in minimum wage would allow people to afford necessities and more jobs are created. Raising the minimum wage also attracts people for businesses as well. The minimum wage should be raised so that people can afford apartments, they can afford necessities and more jobs are created, and attract people for business.
In the United States, minimum wage has remained at a low number for several years. Minimum wage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimum wage is considered a price floor and the minimum wage laws determine the lowest price possible that any employer must pay for labor. In an economic model, the quantity of supplied is greater than the quantity demanded and the minimum wage is above equilibrium price and quantity. Minimum wage prevents labor supplied and labor demanded from moving
There is not one state in the US where a minimum wage worker can afford a two-bedroom unit at fair market rent, working a standard 40-hour work week(There are a few states where this is not true. Also, the fair market rent is the average cost. It doesn 't reflect the super expensive and bottom rent places). The federal minimum wage would be $10.86 [per hour] if it had kept up with inflation over the past 40 years. Instead, it is $7.25 [per hour]. Every state in the US should have the minimum wage raised to $10.86 per hour(passive, rewrite). The cost of living has increased(s) dramatically every year(,) so why shouldn’t we raise the minimum wage.(?) The value of the minimum wage has fallen by almost 50 cents since it was last increased in 1991(Fact check; the Federal minimum wage was raised in 2007 to 6.35 an hour, up from it 's 1991 rate of $5.15 per hour, and again in 2009 to $7.25 per hour). Living expenses are increasing so fast that more people are falling into the category of “lower class”. Author Tom Dickinson writes, “A family of four trying to live on the earning of a minimum-wage worker-- $15,080 a year—falls more than $8,000 below the poverty line” (Dickinson 33). (Transitional sentence?)
Imagine standing over a scorching grill for hours, taking care of the elderly, both lifting and transporting heavy loads, basically doing back breaking work; only to be making less than $8 and hour. That is the reality for millions of people in the work force who are earning minimum wage. Whether or not minimum wage should be raised has been a question many people have been discussing for years and has become quite controversial. Those opposed to increased minimum wages would argue that a minimum wage salary is already sufficient enough, or in some cases even “too high”. In spite of the opposing sides, it is almost certain that a rise in minimum wage will either positively or negatively affect several aspects of the country. For one, an increase in minimum wage could result in an economic shift. Furthermore, the current poverty level within the country, with the help of a higher minimum wage, would either decrease or as a result. Thirdly, a change in poverty levels caused by a higher minimum wage would ultimately change the amount of government spending and those who receive it. Minimum wage being raised would definitely be impactful not only the people receiving those minimum waged salaries, but also the economy, their families, and even the government funding.
Minimum wage is now at a steady $7.25 per hour and shows no sign of increasing anytime soon. There are states right now at the time that are trying to raise the minimum wage, and see how this will effect the economy of the area.
Presently, the citizens of the United States of America are involved in an impassioned debate over the federal minimum wage. As of October 5, 2016, the federal minimum wage is set at seven dollars and twenty-five cents an hour. There are numerous amounts of stakeholders when it comes to minimum wage. The three stakeholders mentioned in this essay will be Companies, Employees, and the Economy. In addition to the stakeholders, this essay will also dig into the history of the United States Federal Minimum Wage and see how it has progressed over the years and if it kept up with inflation over the years. With this information, society will see what an increase to the federal minimum wage will have on the United States economy and labor force.
There has been a growing desire for minimum wage to be set at $15 an hour. While many of our lowest pay employees will be getting paychecks, workers who have been at businesses longer feel like they’re being undermined. Employees say that it is not fair for a new worker to be earning as much as someone who has been apart of the company for three years. Also, raising minimum wage poses a financial and management challenge for employers. Numerous cities have passed wage increases in the past year, and New York and California recently approved the new wage of $15 an hour. “The Supreme Court’s decision not to take on a challenge to Seattle’s minimum wage rule removed one of the most significant legal testes of local wage laws.” Seattle has now
The minimum wage requires employers to pay their employees a minimum amount of money which is based on the current version of the law, which is raised every year to adjust the living costs. There are some advantages and
Since September 1, 1991 the federal minimum wage in America has been $7.25 over 30 states have raised their minimum wage to over that amount. People cannot survive on $7.25. It is most likely that someone working minimum wage will be working more than one job. Some states that have higher minimum wages like washington with a $11 an hour make the prices of living higher and so it does not make a major difference in life. There are things people do because of living in poverty or below the poverty line
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