Negative Effects Of The Minimum Wage

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The Fair Labor Standards Act, brought about in 1938, establishes the minimum wage that must be paid to all employees. After the great depression, people were asking for a change. The minimum wage issues have been changed plenty of times since 1938, mainly for expanding coverage or increasing the hourly wage. Since then, it has been raised 22 separate times. The most recent increase was in 2007, which raised the rate to its current 2017 level of $7.25 per hour.
Although many in the government believe minimum wage is sufficient to survive and increasing minimum wage can have negative effects on the economy, like losing millions of jobs. By increasing the minimum wage individuals will be less likely to live below the poverty line, and the bond with government assistance can be separated, and the amount of consumer spending might increase.
Also when setting the minimum wage, the government gives several exemptions and a few dollars off one's hourly wage for certain types of workers and different classes or levels. Even with that, the government minimum wage presentation still could cover the vast majority of the workforce. Even though it's a wide range, the minimum wage mainly affects a relatively
Hilliard 2 smaller size of the workforce. In 2017, there's around, well over two million workers whose hourly wage are at or under the federal minimum wage of $7.25. Such as, contracted farm workers, taxi drivers, and food service tipped employees.
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