Minimum Wage Pros And Cons

The minimum wage is not suitable for society because it is too low and due to this, employees tend to overwork with more than one job, which leads them to not be available for their families enough, and they are unable to make progress with this wage

Ira Knight, who is an author of article “Let’s Make the Minimum Wage a Living Wage”, expresses an opinion that increasing the minimum wage would help all struggling workers and at the same time improve U.S economy. On the other side, Janice Steele in her article “Keep the Minimum Wage Where It Is” argues that raising the minimum wage would have bad effects on workers, consumers and small businesses. Ira Knight’s article seems to be the stronger of the two positions because her arguments are based on several recent studies, and last but not least, she had a personal experience with the minimum wage job.

The minimum wage was established in the United States by the Fair Labor Standards Act of 1938 at 25 cents per hour. These laws are broadly supported by the public. Congress enacted these rules to combat “labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and the general well-being of the workers” (Sharp, 2013 p. 71). The purpose and intent of

In 1938, the first national minimum wage laws in the United States were passed as part of the Fair Labor Standards Act, which served as “a floor below wages,” to reduce poverty and to ensure that economic growth is shared across the workforce. Today, many people who work for companies that pay at or near the minimum wage and remain near or below the poverty level rely on government health and food security and income programs to supplement their living expenses. Since 1938, there have been many additional policies to the Fair Labor Standards Act that have changed many things, such as increasing the national minimum wage numerous times to the currently salary level, which was set in 1997. The Fair Minimum Wage Act of 2007 was a policy to change the federal minimum wage from $5.15 to $7.25 in three additions, which began in July of 2009. (http://www.dol.gov/whd/regs/compliance/posters/minwagebwp.pdf)

The history of the Federal minimum wage dates to 1938 when then President Franklin Delano Roosevelt signed “the Fair Labor Standards Act (FLSA)” into law (History of Minimum Wage). Franklin Delano Roosevelt signing the FLSA into law made sure that no American could be paid less than the federal minimum wage. The initial minimum wage was set at twenty-five cents an hour back in 1938. However, prior to Franklin Delano Roosevelt signing the Fair Labor Standards Act into law there was not any “national minimum wage, or…legislation to protect workers from exploitation. [Due to] lack of regulation tens of thousands of workers were routinely exploited in sweatshops and factories…for pennies a week” (Minimum-Wage.org). Which made covering day to day

The action of raising the federal minimum wage has been cast as a necessary change for the United States, and would result in ensuring that America’s workers are able to receive a reasonable living.Though the controversial issue has turned more complex, with many implications beyond just those who bag groceries, flip burgers, and clean offices. The issue is believed to have various pros and cons, and consequently sparking the ongoing debate on to, or to not change to wage.

The current U.S. Federal Minimum Wage is $7.25 per hour. In just two years from 2013, the demanded from advocates for raising minimum wage rose from $9 to $15. However, raising the minimum wage is more complex than simply raising the number of federal standard of pay for employees. Relative control groups and other market activities play a part in the outcome of the minimum wage. For example, one instance of market activity was observers said that raising the minimum wage did not hurt individuals; however, wages were raised during an economic downturn so the impact of minimum wage was masked by other activities. Federal Minimum Wage is pressing topic and it is important to consider the pros and cons to raising it, to ask what people and how people are affected, and to look further into the microeconomic theoretical framework of wages surrounding the topic.

In our modern society one of the seemingly least controversial topics is the minimum wage. The popular opinion wants to raise the minimum wage, but is the popular opinion always right? Throughout recent years, politicians have made promises to raise the minimum wage to help low-income earners live a better life. Contrary to popular belief, raising the minimum wage actually hurts low-income earners and low-skilled workers. We must first define a low-skilled worker. A low-skilled worker does not mean that particular employee is not intelligent; it simply refers to a worker who cannot perform as efficiently due to low educational attainment. Through this paper, I hope to inform you, Mr. Randall L. Stevenson, and our company, AT&T, about the disadvantages of raising the minimum wage.

The minimum wage was first introduced in New Zealand in 1894. It wasn’t until 1938, that President Franklin D. Roosevelt signed the first US minimum wage law called the Fair Labor Standards Act (FLSA). The FLSA sets

The idea of minimum wage is that workers are guaranteed enough money to live off of. The price of minimum wage is determined by the state, but a federal minimum wage is set. Some states choose to go above the minimum wage, while others, such as Alabama and Louisiana, choose to not have minimum wage at all (Root). Minimum wage is important to society, because it can affect many people’s lives. There are many pros and cons to having minimum wage in the United States. Furthermore, various stakeholders are also impacted by this policy in numerous of ways. Minimum wage is a microeconomics and macroeconomic problem that has many consequences. Therefore, minimum wage has been a great economic issue because of people’s support and opposition to the policy.

The United States Government established the first federal minimum wage in 1938. Since its inception, most states have also instituted their own minimum wage requirements. The purpose is to ensure that employers are compensating all workers fairly, by preventing them from paying below a mandated level. These laws were enacted to help safeguard the welfare of American workers as a result of the economic instability felt during the Great Depression. Although they were designed to protect workers, history has shown that they often end up causing more harm than good to both the workers they are intended to help and the economy as a whole. This is explained by the Cato Institute’s Mark Wilson in a 2012 report as he states:

In the US, President Barack Obama urges Congress to raise the federal minimum wage to $10.10 an hour from $7.25. Although some Republicans oppose to this action, overwhelming majority of Americans see that is a good idea (The Guardian, 2014). Regarding to the issue of minimum wage, there have been lots of debates for a long time. Some economists such as Milton Friedman deeply believe that minimum wage kills jobs, but some like Alan Krueger and David Card think, to some extend, it actually increased employment (The Economist, 2012). To detailedly understand the topic of the minimum wage, both sides debate of the economists on the issue should be concerned.

Proponents of raising the minimum wage claim that if the minimum wage was raised, then many economic and social problems would be alleviated. This contention is at odds both with economic principles and years of creditable research. The effect of raising or even having a minimum wage has been studied extensively and the majority of studies have proven that raising a minimum wage does not have the desired effect. Both micro and macroeconomic forces affect the results of raising the minimum wage. The secondary effects of raising the minimum wage are bad both for

Minimum wage is something that is so hard to decide on because it affects different citizens in different ways based on how much they make. Franklin D. Roosevelt was the man who introduced minimum wage by creating a law called Fair Labor Standard Act of 1938 which was intended to increase the standard living of lower class workers. According to Minimum Wages by Linda Gorman, minimum wage laws set legal minimums for the hourly wages paid to certain groups of workers. As of right now, the federal minimum wage in the United States is $7.25 per hour, but state minimum wage is different based on their laws. For example, Nevada’s sate minimum wage is $8.25 per hour and California’s is two dollars higher sitting at a whopping $10 per hour. This has been a controversy that has been troubling everyone. We always find ourselves watching politicians argue with politicians, as well citizens arguing with other citizens, on what should be the minimum wage that would benefit the economy and our society we live in. Though these factors are not the only things we need to have in mind, we need to think about whether raising the minimum wage is something that we need to do, or what is going to be impacted by raising minimum wage. These questions have had many researchers beyond interested, figuring out what will change before it happens could lead us to prevent bad things from happening. There are several things that researchers have realized would be impacted by

On an annual basis, workers who work full time at a job that pays the federal minimum wage make $12,920 before taxes. Considering this level of income is at the borderline of the federal poverty level of $11,770, many in the U.S.- low wage workers, farmers, and even economists- are calling for a reexamination of the minimum wage policy. The purpose of minimum wage laws is to ensure lower-class families receive a living wage which enables them to live with dignity. Advocates of minimum wage hike question if the current minimum wage level is serving its intended purpose. This report will investigate the rationale and implications of raising