Minimum Wage and the American Dream

Think about your goals that would lead you to your definition of the American Dream. Would you let economic differences ruin your dream, or work harder? The American Dream would be considered reaching your ultimate goal and having a stable life and job to provide for oneself and their family. Most people in our country think that the main reason why the American Dream is dying is because of income inequality. Income inequality can play a huge role in why people’s financial situations have a toll on their goals.

Minimum wages laws fluctuate throughout all fifty (50) states. The federal government has minimum wage set at $7.25. Although the government has the law in place, states and cities must right to increase the minimum wage, but they are not allowed to decrease the value below the federal law. According to Caplinger, there are about twenty- one (21) states that have a minimum wage higher than the national level. These states that have higher minimum wage tend to have a higher population. For example, California, as a state, has decided to increase their minimum wage law due to the standard of living. This law to raise minimum wage to ¬¬¬$10.50 in California is in progress to take effect in January 2018(Kravosky). Some cities within states, can create their own minimum wage. Cities create these minimum wages based on the population size, cost of living, and size of the city. For example, Atlanta, Georgia has a minimum wage of $15 an hour but the state of Georgia has minimum wage set

There are many employees who find themselves working full-time for what the government has so generously termed the “minimum wage”. In Missouri, the minimum wage has been set at a rather appalling $7.65 per hour while in other states there are wages starting as high as $10. Though arguably the economy is not as sluggish and terrible as it once was, $7.65 per hour will not help those who have children, no college degree and debts to pay. It is not only Missouri that has minimum wage laws, but every other state in America has minimum wage laws in place. Both California and Seattle recently established a plan that would see their minimum wages rise to $15 by 2021. The question for all the other forty-eight states remains, should the minimum wage be raised?

The topic of raising minimum wage seems to attract a multitude of controversy. On one side, experts agree that raising a family on one minimum wage salary is almost impossible for someone who puts in fairly large work hours. Nonetheless, business owners agree that increasing these salaries will result in significantly less jobs, as well as force them to increase the prices on their consumer products. Federally, minimum wage workers earn $7.25 an hour, totaling up to $15,080 annually, with approximately six hours of working time per day. However, the price varies with state, with places like Massachusetts and Washington paying $11 to workers hourly.

What would be so bad about raising minimum wage? Before other states jump on the $15 minimum-wage bandwagon, they might want to look at what's happening in Massachusetts — one of two states with a $10-an-hour minimum wage. Massachusetts increased the minimum wage from $8 to $9 at the start of 2015 and to $10 on the first day of 2016. The state is now mired in its longest stretch of net job losses since the recession in both the retail and the leisure and hospitality sectors, Labor Department data show.

The Congressional Budget Office (CBO) compiled a comprehensive report in 2014 about the effects of a $9 and $10.10 increase to the federal minimum wage. The CBO reports that raising the minimum wage to $10.10 an hour could likely lead to the destruction of 500,000 jobs

Now the question is what is minimum wage. “An amount of money that is the least amount of money per hour that workers must be paid according to the law” (Merriam Webster’s learner’s dictionary). According to United States department of Labor “The federal minimum wage for covered nonexempt employees is $ 7.25 per hour effectively July 24, 2009” (Department of labor/ Minimum wage).

The minimum wage is intended to protect workers and fight poverty. In the United States, the federal government sets the minimum wage at $7.25 per hour although many states set higher minimums. There is currently a movement to raise the federal minimum wage to $15 per hour. This movement is called the “Living Wage Movement” (Living Wage Resource Center, 2016) or the “Fight for $15” (Fortunato, 2016) and purports to address the problem of poverty in America.

The issue at large is whether or not to increase the minimum wage in the United States to fifteen dollars. Many organizations are affiliated with minimum wage, including many corporations that implement extremely, very basic, entry level positions where minimum wage is a suitable payment; such as Wal-Mart and McDonalds. The minimum wage varies across the spectrum from state to state. In January 1, 2015 the highest paid minimum wage by state is in Washington with $9.47 an hour and the lowest is Wyoming, along with twenty-four other states, at $7.25 an hour (RaiseTheMinimumWage). The increase in minimum wage from years preceding is mainly due to inflation. If an increase to the minimum wage is called for, it must be

Washington has the nation’s highest minimum wage at $9.19 per hour. Seattle is set to raise the minimum wage even further, to $15 per hour. More than fifteen millions people work for a minimum wage, which lead to about

The current federal minimum wage is $7.25. The last change to this wage was in 2009, when it was raised by $2.10, from the past wage of $5.15 per hour. However, there are some different laws relating to minimum wage. One of these laws is that “workers whose

In the 2014 State of the Union address, President Obama called on Congress to raise the national minimum wage from $7.25 to $10.10 an hour, and soon after signed an Executive Order to raise the minimum wage to $10.10 for the individuals working on new federal service contracts. An increase in the minimum wage has been a topic of

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).

In United States the minimum wage is been set by a network of federal, state, and local laws. Workers are generally been paid no less than the statutory minimum wage as specified by the government. As of July 2009, the federal government officially ordered a nationwide minimum wage level of $7.25 per hour. The federal minimum wage was at its highest at 10 dollars in 1968, as measured in 2014. Since then there were controversial debates over the

Currently, the federal minimum wage sits at $7.25 per hour. (Alison Doyle). The debate is whether or not the minimum wage should be increased to $15 per hour. Larger states, such as California and New York, are preparing to raise their minimum wage to $15 per hour in the coming years. (Kate Rogers). Due to the size and population of states such as these, a minimum wage increase could actually be beneficial in increasing revenue and the standard of living for many employees. The majority of the United States is not as fortunate and vastly populated as states such as these. Therefore, an increase in the minimum wage could result in layoffs and reduced hiring. (Doyle). Overall, the minimum wage should not be increased to $15 per hour.