Minimum Wage Policy Analysis

Labor laws were improved as the NLRB and the FLSA established systems to negotiate disputes between employee-employer disputes and set minimum wages, respectively (Danzer 1383). Their effectiveness was subjective, however, as many critics claimed that companies refuse “to deal with their employees through collective bargaining … that leads to widespread labor unrest” (Document G). Many of these reforms were also questioned because, combined with the rest of the problems Roosevelt intended to solve, he turned the federal government into a multi-tasking giant. Document C exposes how, while Roosevelt tries to depict his plans as a natural evolution, it is in fact a staunch change from what the federal government’s actual purpose is. While some of these New Deal programs were cut back by Congress, the increasing power of government can still be observed

Many people criticized Roosevelt’s ideas for unemployment improvement by saying that although his intentions were sincere, he lacked trust for and ignored the entire economic and business system. As said by Senator Robert A. Taft, “Despite the New Deal Promises, there are more people who have barely enough to live on, than there have been at any time except the very bottom of the Depression.” Senator Taft further discredited Roosevelt by saying, “But from the beginning, it has been motivated apparently by a complete distrust of our entire economic and business system.” While Senator Taft made his opinion very clear, he was different because he actually provided a solution to the problem, and an amendment to Roosevelt’s original ideas. “Relief will never do more than provide a bare living, and will never be a satisfactory substitute for real work in private industry. . . . The unemployment problem can only be cured by more jobs in private industry.” However, Robert A. Taft was not the only one that shared this opinion. In Labor Law Reform and Its Enemies, Thomas Ferguson and Joel Rogers shine a light on the subject from a more modern perspective (1979). Ferguson and Rogers propose that this system set up negative consequences for the future labor-wise. “Yet, from the 1950s through the end of the century, the membership, political influence, and bargaining power of organized labor all went into a decline.” As the postwar system of collective bargaining began to decline, so did the good benefits, higher wages, and better working conditions that had been provided for

As previously discussed and demonstrated, prior to, and even early on in Roosevelt’s implementation of the New Deal, the Court had demonstrated a highly conservative, and laissez faire outlook. In the early stages of the New Deal era, the Court had invalidated numerous programs, such as the Railroad Retirement Act, the National Industrial Recovery Act, and Agricultural Adjustment Act. Infuriated, President Roosevelt devised a proposed legislation to “pack the Court”. Under the Court packing plan, Roosevelt would have the opportunity to appoint six new Justices to the Supreme Court, ultimately upsetting the balance of the Court and manipulating it to rule more in his favor. Although this legislation was not passed, the Court did shift its

For example, many people believe that it would act as an economic stimulus for the country. If the minimum wage were to increase, that would allow for people to have more money, and in turn they would spend more money at businesses, boosting the nations economy.20 However, it would also benefit the government by decreasing the amount of people enrolled in government programs such as Medicaid and food stamps.21 As stated in an article published in Congressional Digest, “The President’s plan strengthens the middle class by making America a magnet for jobs, equipping every American with the skills they need to do those jobs, and ensuring hard work leads to a decent living,”22 this, directly relating to a statement the President made in his State

Six years after the end of the 2008 recession, the pay for American workers remains at the same rate as when the recession began. Low wage jobs have dominated the job growth associated with the post-recession recovery. The federal minimum wage of $7.25 per hour remains decades out of date. “The federal minimum wage has lost more than 30% of its value and would be more than $10.59 per hour today if it had kept pace with the cost of living over the past forty years”. (“Fair Minimum Wage Act of 2013, 2013).

House Bill 230, or the most recent bill introduced in North Carolina to increase minimum wage, was introduced by the House of Representatives on March 12, 2015. After the first version of the Bill was introduced, it was revised once. The bill was introduced because the goal of the state is to provide a minimum wage that allows for a decent and healthy life for its citizens. As the value of the American dollar continues to change, so does the average cost of living. The primary sponsors of the Bill were Representatives Farmer-Butterfield, L. Hall, Fisher, and Cunningham. The Bill states that “Employers shall pay employees wages no less than the minimum wage for all hours worked in North Carolina.” It then states that minimum wage in North

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.

The selling point that has brought people to the United States for centuries is the American dream: Prosperity, Luxury, Opportunity, and so on. Unfortunately for many, this dream has been squandered by the receding economy of an indebted country. As inflation runs rampant, the value of the U.S. dollar decreases, lowering the value of household and business incomes. This economic recession has led many, especially those who only earn the minimum wage, to poverty. According to the United States Department of Labor, “The federal minimum wage is $7.25 per hour” (“Wage and Hour Division”). Some people believe that a solution to this problem is to raise the minimum wage; however, doing so would ultimately result in a negative effect on the

Minimum wage is the lowest amount a business is allowed to pay its employers by law. In the past several years, many state legislators have been trying to increase this amount. Currently, in the state of Pennsylvania the minimum wage is $7.25 but in some states, such as California, it is up to $10 already (Whiteman.) This topic is of high interest to myself and others because a change in the minimum wage can have drastic affects on the economy. Many people want the government to pass new laws for a higher minimum wage; some want the wage up to fifteen dollars an hour. Increasing the minimum wage at such a large amount will have a major impact on the economy. This side argues that an increased minimum wage is just what the United States needs.

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.

In the United States alone, the amount of people in poverty is 14.5%. That equates to 45.3 million people in 2013. In a country like America, one of the world’s superpowers, it’s embarrassing to admit. But the main issue is to fix issues like these with the minimum wage and welfare. The minimum wage applies to workers who got a job whether because they were in school or because they had not gone to college and had no other option. Most of the country lives off as minimum wage workers as only 1% of the world’s population has a college degree. Minimum wage needs to be adjusted to modern inflation. But the minimum wage allegedly does not affect poverty at all says a large demographic and does not need to be adjusted. The minimum wage makes up a lot of the country and should be adjusted or modified to today’s standard of living.

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.

The idea of having a federal minimum wage is a good one. The idea is to protect low and unskilled workers from discrimination and allow all workers to earn a living wage. The recent debate on the floor, though, is whether or not to raise the minimum wage from the current $7.25 per hour up to $10.10 per hour. President Barack Obama made this proposal during his annual State of the Union Address on January 28, and following this there were many hot debates about it. The debates focused not only on the advantages and the disadvantages of increasing the minimum wage, but also the alternatives to increasing it.

What is minimum wage? Minimum wage is the lowest legal paycheck a company can give to an employee. It is illegal for a company pay an employee less than minimum wage (Principles of Microeconomics). Unemployment, on the other hand, is the percentage of the total workforce who are without a job and are currently looking for a paying job. The unemployment rate is one of the most closely watched statistics due to its relationship with the interest rate. If the unemployment rate is rising, it shows the economy is becoming weaker and may even need a call for cut in interest rate” (businessdictionary.com).

Critique: Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania