Did you know the minimum wage was $0.25 per hour in 1938? Since then, it has risen to a whopping $7.25. Most readers will agree that there is a problem with this current minimum wage, considering the cost of living and salaries. However, they might not understand the complexity of the issue. In fact, the topic is not simply a question of if the minimum wage should be increased or kept the same, but more of a complex issue involving the different viewpoints about why people agree or disagree on raising the minimum wage. The authors that mainly agreed to a minimum wage increase said it is too low for anybody to live off of; that a higher minimum wage will help create employment and growth in the economy. Mainly the people that disagreed, say that numerous businesses could not manage to pay their workers more, and will be compelled to fire workers; that growth has been advertised to make it more challenging for unskilled workers with limited to no work experience to find jobs or become upwardly mobile. These articles demonstrate that the minimum wage controls poverty levels. According to Bill Laitner in "Heart and Sole: Detroiter Walks 21 Miles in Work Commute," the workers of Detroit can work 5 days a week for 10 hours a day, and due to the underwhelming minimum wage, these people do not earn enough to buy, maintain, and insure a car in Detroit. Furthermore, this is just a small excerpt from what it is like to "not earn enough" (Laitner). Even hard workers simply do not have
Before people push a minimum wage increase, they need to be totally aware of all of the positive and negative results and consequences that might occur as a result. The issue concerning what to do about the minimum wage has served as an ongoing controversy amongst several people. The federal minimum wage should not be raised for several reasons including the harmful effect on small businesses, the increase of poverty, and the augmentation of competition for jobs.
Although America is known as the richest country in the world, 43 million of its citizens are in poverty. Unfortunately, some of them work full time, yet are still in poverty due to the low minimum wage (“Should We Raise”). In 1928, the first federal minimum wage of 25 cents per hour was set by President Franklin D. Roosevelt to prevent workers from being underpaid. Since 2009, the federal minimum wage has been $7.25 (Smith). The age old debate of whether or not to raise it is still going on in the US. The federal minimum wage should be increased to keep up with inflation, help support the poor, and stimulate the economy.
Humanity reaches unbelievable heights, discovers old civilizations, creates supersonic aircraft, launches every day new high tech gadgets, but fails to resist the challenge of the 21st century- the poverty. The U.S.A. has experienced crisis and prolonged period of economic instability which threatened first of all the economic security of individuals, families and whole communities. The minimum wage becomes a wealth inequality and economic segregation that endangers the ability to eat and remain healthy, have access to education and new opportunities. In these circumstances, replacing the minimum wage with a living wage will serve as a relief for the poor and will bring benefits to the local businesses and the economy as well.
One of the most acrimoniously debated problems in American society today is the debate over the minimum wage. The minimum wage, established in 1938 by President Roosevelt, was made to be a safety net for people who provided unskilled labor, but also needed to provide for themselves. Up until that point, people had no guarantee that they would be paid. The minimum wage was quite literally one of the only lines of defense unskilled workers had in harsh times, such as near the end of the Great Depression. In today’s society, the minimum wage is still a means by which unskilled workers can provide for themselves, but many people have lost track of what it originally meant. The minimum wage is no longer specifically meant for people in dire need, having to take the first job they find. People now perceive it to be something into which they can settle, even in today’s society, where opportunities for hard workers to be promoted are frequent and encouraged. Despite the chances people have to seek out promotions, most $15 minimum wage proponents believe that they are entitled to having the minimum wage increased because they believe it would put them at a “livable wage” and that businesses owe them higher pay because of the cash flows they generate. As a federally mandated expense to businesses, it is critical for people to consider the possible negative outcomes of trying to forcibly make businesses, whether large or small, pay an increased minimum wage as drastic as $15. Not only will it negatively affect the U.S. economy, but it will also put minimum wage workers at the same level of disadvantage, if not more.
Where to set the minimum wage has been a huge debate topic for years. The smallest increase or decrease can have a large overall impact on the economy. Do you think the minimum wage in California should be raised to $15 an hour? This is a question many in my home state are currently asking. California’s current wage is $9/hr., and the federal government is raising it to $10/hr. in January 2016. It may seem like common sense that if you have a higher minimum wage, then there will be less poverty. This is what I first thought when looking at this issue. However, Holtz-Eakin observed that a vast majority of minimum wage workers are in fact not living in poverty (Deutsch). Many minimum wage workers are not living under the poverty line, but simply
It is truly a saddening sight to see men on the street in this day and age in cities everywhere both big and small begging for spare change with a cup and sign saying "Unemployed will work for food," and it is even sadder when the person is a woman with her children by her side. As of now, there are approximately 325 million people in America and of them, 1.7 million live off of minimum wage. 4.9% of those people are unemployed and .5% of them homeless. The number of jobs available are constantly shrinking, faster and faster and minimum wage is being less and less effective as a means for survival. To answer this problem, I propose a modest and efficient proposition. My proposition would be to abolish the minimum wage and reallocating pay elsewhere, or in simple terms remove minimum wage. There are many reasons to do so but the main reasons to remove the minimum wage are that it slows job growth and opportunities for jobs, it is not helping to curb poverty but worsen it, and it is hurting low-wage workers.
3.3% of Americans aged sixteen years or older earn at or below the minimum wage of $7.25 an hour. With an estimated 45 million citizens living in poverty, I will attempt to prove why we must increase the minimum wage to at least $10.10 an hour. In this paper, I will discuss the history and definitions of poverty and minimum wage as well as the pros and cons of implementing a higher minimum wage. I will also examine the economic and social effects of the minimum wage and how it pertains to our day to day lives. In 1938, President Franklin D. Roosevelt established The Fair Labor Standards Act or FLSA as a part of The New Deal. With this, a federal minimum wage of $0.25 was introduced. The act also provided overtime pay, a maximum workweek of forty-four hours, recordkeeping requirements, and a restriction on child labor. Before its passage, one in four children were working sixty hours a week for a median salary of $4.00 per week. Over 700,000 workers were affected by the Fair Labor Standards Act and Roosevelt called it the most important legislation since the Social Security Act of 1935. (Grossman) Since its introduction, the minimum wage has been increased twenty-two times by twelve different presidents. (Bose) The act was specifically intended for those working in manufacturing. Only about 20% of the population was covered by the minimum wage law. Other industries were exempt from the law due to concerns that it would restrict employment. The FSLA faced judicial opposition from the very beginning and has never been without controversy. The National Association of Manufacturers or NAM, denounced the new laws as “a step in the direction of communism, bolshevism, fascism, and Nazism.” (Cole) Many politicians and merchants vehemently opposed the Act and considered it an attack on traditional American values. Roosevelt addressed this apprehension in a fireside chat where he is quoted as saying, “Do not let any calamity-howling executive with an income of $1,000.00 a day, who has been turning his employees over to the Government relief rolls in order to preserve his company’s undistributed reserves, tell you […] that a wage of $11.00 a week is going to have a disastrous effect on all American industry.” (Tritch)
Opponents believe that increased labor costs force businesses to cut jobs to make up for the decrease in profit. Other topics Mejeur includes in the article are different approaches of states raising the minimum wage and arguments for and against supporting the minimum wage. Some states have already taken the initiative and raised their minimum wage above the federal standard, North Carolina however has kept pace with the federal standard. I will use the information presented in this article to analyze both sides of the minimum wage issue. In a poll conducted in November of 2013, “76% of the public supported raising the federal minimum wage to $9.00 an hour. In the same poll, 69% of those asked supported a future increase to match the cost of living, to keep pace with inflation.” This is a point I will use in my research to explain why raising the minimum wage is a good
One of the greatest challenges minimum wage workers are having today is being able to life off of it. Having a family to look after while earning minimum wage is very hard. Jon Corzine (n.d.), an American financial executive and former politician said “No family gets rich from earning the minimum wage. In fact, the current minimum wage does not even lift a family out of poverty”. Another problem is owning a car while earning minimum wage. This is a problem because it costs a lot of money to maintain a car so you can keep using it. Also, gas prices have gone up which means paying more to use your car and, according to Bill Pascrell (n.d.), “Today a minimum wage earner has to work a day and a half just to pay for a tank of gas. That is simply shameful”. Another thing we should look at is the impact of the economy after minimum wage increase. According to FAO, the total labour income will be increased by 1.3 per cent by 2019, but only one-quarter of the labour income will help low-income families. Also, it will increase payroll cost for Ontario Businesses which will cause low income workers to lose their jobs (Financial Accountability Office of Ontario, 2017). Despite the fact that increasing that increasing minimum wage would force businesses to lay off employees and raise unemployment levels, minimum wage hike will have a positive outcome for low-income workers because increasing the minimum wage would reduce poverty, a higher minimum wage would reduce inequality and higher
The first Disagreement I would like to address is that “raising the minimum wage would take people out of poverty” I disagree with that. According to the United States department of labor, the first time minimum wage was raised was on October 24, 1938 to .25 (USDL). Business Insider records show that in1938 gas was.10 a gallon, eggs .18 per dz, a new house was only $3,900, and school tuition to Harvard was just $420.00, these were statistics before wage increase (Business insider). Looking at the prices from then until now there has been a big inflation to items we use every day. According to Bill Gitis from American action forum also states “Looking specifically at how minimum wage relates to poverty, only 0.3 percent of people in families with incomes below the relevant 2011 federal poverty lines worked an hourly job and made at or below the minimum wage. The minimum wage does not help people in poverty who actually work” (Bill Gitis, American action forum). In fact if the families from low income homes do not work how does this law help them get out of poverty?
Low minimum wages affects everyday families and lives, more than the average person would think. A small minimum wage could have an very small effect on someone’s life, such as not being able to afford a new pair of boots or that new phone, contradictory to this low wages could also have a very serious effect on someone’s life . Meaning that a parent or single individual could not support their family because a lack of income, it could also mean the difference of living under a safe roof, or living in the streets. In 2016 alone, 40.6 million people in the United States
For people that want to live off a job that pays minimum wage than you'd love the very foolish law that california has been passed to raise minimum wage to 15 dollars by 2022. Which will cause inflation and “fast food restaurants will just become gateway jobs to start better professions” most workers will be replaced by machines. And for people that are on a salary they don't benefit from this because they have a set wages.
Is increasing minimum wage beneficial to society? I believe the United States Federal government should increase the minimum wage. Minimum wage has been a controversial topic in the United States for numerous years. Experts are constantly doing studies and finding emotional and logical appeals to support their arguments. Accordingly, when discussing minimum wage, long-term and short-term effects need to be brought into consideration. Throughout my research, I have found a multitude of claims that support and counter my argument. Overall, this essay will focus on ways minimum wage impacts society in a variety of different fields.
A higher minimum wage means a better life for many Americans who have had struggles finding the right career for them. Barack Obama urged Congress to raise the minimum wage from 7.25 an hour to 10.10 an hour, simply by asking them: “try living on $15,000 or less a year” (source). They also estimated that “more than 28 million workers would benefit from the minimum wage increase; 19 million of them would benefit directly” (Source). This failure to raise the minimum wage also leads to a higher gap between the rich and the poor. The earnings ratio between the CEO and the worker was about 20 to 1 in 1965. Today the ratio between a CEO and a worker is 273 to 1(source). As of right now, the current poverty line is at $22,000 for a family of two adults and two children. The wages before taxes for one working parent are under $15,000 as of now(source). If the minimum wage is raised to $10.10, the wages for a working parent are now at around $20,500. With the extra money made, parents will be able to afford better food, clothing, and housing for themselves and their children. Raising the wage for minimum wage workers will also help with many people’s mental health, which could help affect the children of these workers from avoiding a future in poverty themselves. According to Ann O’Leary’s
There has always been a constant debate about whether or not our government should raise or lower the minimum wage within the United States. Especially after this past year’s controversial presidential election, it seems to be a running concern between our citizens about whether or not the minimum wage should stay the same, increase, or decrease to create the most beneficial outcome for our constituents. Although our country seems to be very divided on this issue, multiple sources address this policy in our daily newspapers, articles and magazines.