Minimum Wage Rates Impact On America

2305 WordsDec 10, 201410 Pages
Minimum Wage Rates Impact Christopher W. Thomas Liberty University Global Economic Environment BUSI-620 Dr. Nesli Duda Introduction Also referred to as living wage, minimum wage is the lowest hourly rate allowed by federal law to be paid to an employee by an employer that is usually determined by inflations and other economic factors. Usually, it is an economic program stipulating an employee’s benefits of working per hour valued against a hardship policy instigated by the employer. In the United States, the minimum wage first came to light during the Depression era which has propelled from levels of 25cents to $7.25 per hour since 1993 (David, 2013). Irrespective if this steep increase, matters inflation in the United States economy has led to its value depreciation to 1968 levels that needed its increase to levels of $10 per hour. President Obama in his 2013 state address suggested for a raise of the minimum wage to levels of $9 per hour, similar to the 1968 levels. This call by the president will see the increment of wages of over fifteen million people but on the offset will have effects on employment. In retrospect to the aforementioned call by the president, raising the minimum wage to $9 per hour would see the weekly earnings of more than seven point six million earnings go up while at the same time close to one hundred workers in the low earning job markets will lose their job for this concept to be actualized (Joseph & Burkhauser, 2012). It is
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