In a modern world where income inequality is rampant and economic conditions are often very unfavourable to the vulnerable poor of our society, the minimum wage is often a heated focus of public policy debate. The debate often revolves around one simple question: “To what degree does an increase in the minimum wage increase the wellbeing of minimum wage workers?” Although this is a debate which is fundamentally centered around the workers, it is important to consider the reaction of the employers when attempting to create effective minimum wage policy. The responses of the firms represent a key factor; especially when projecting the potential effectiveness of the implemented programs. Generally speaking when employers are faced with the problem of being forced to pay higher wages as a result of legislated minimum wage increases, they are left with limited solutions with which to manage the associated increase in production costs as a result of the higher wage. They can choose to pass costs along to consumers, however that can result in long term sales declines which leads the firm into a downward spiral of falling profitability. This was found to be the strategy employed by Pennsylvanian fast food firms facing wage increases in the late 1990’s. As explored by Alan Card and David B. Kruger in their paper examining the response of minimum wage paying firms to price increases, they found evidence “suggesting that much of the burden of the minimum-wage rise was passed on to
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.
Imagine a single mother who has has the task of taking care of multiple children, all on a minimum wage budget. This mother’s mind is overwhelmed with worries. Will she be able to pay next month's rent? WIll she be able to put food on the table for all of her children. The single mother lives each and every day with this anxiety, and even with government assistance: Is it enough to live comfortably?
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.
I decided to write about how I felt regarding the federal government's involvement in controlling the minimum wage and that I felt they are disconnected in their understanding of the impacts on communities when they raise the minimum wage. I work for a manufacturing company in the U.S. and I understand wholeheartedly what the impact of salary increases due to our bottom line. In very competitive markets the difference between success and failure can be separated by the difference of only a few dollars per part, and while in other countries, their manufacturing bottom line is subsidized by their governments we are forced to generate profits the old-fashioned way through supply and demand. This is why I decided to take a stance in my persuasive essay and challenge the status quo of the Department of Labor and Wages. No longer should the federal government dictate a national minimum wage but should allow each state to establish their own minimum wage based on the economic condition of their counties and their state, as a whole.
Those in favor of the minimum wage have argued, contrary to established economic theory, that the minimum wage can actually increase employment. An increase in income results in additional "money in the pockets" of workers which encourages greater spending in the economy. This in turn causes greater demand for goods and services, an increase in production, and the creation of new jobs. Additionally, a higher minimum wage is thought reduce government welfare spending. If workers earned more money, their dependence on and eligibility for government benefits would decrease. A recurring theme among pro minimum wage arguments is the issue of stagnant wages. Improvements in economic growth and productivity have exceeded increases in the minimum
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.
Minimum wage is a problem, but most don’t want to raise it. Raising minimum wage will be a big problem now and including the future. Raising minimum wage is a problem depending on a social hierarchy. For many years the U.S had had many protesters and this is a problem according to state officials. Family's around the world are surviving on as little as 4.25 an hour in this case people have to survive off of food stamps and family members. Job owners can choose to higher the pay due to a raise in the company or a downgrade will determine whether they will make below minimum wage. Minimum wage should be increased from 7.25 to 9.00 an hour because of the over qualified, educated, and experienced Americans who are now relying on minimum wage jobs as a result of the struggling economy. Also, increasing minimum wage could help stimulate the economy. But, in order to get the economy back on track the spending power must be in the hands of the Americans who in fact, spend. With today's tough job market most job seekers are willing to acquire positions they are considered over qualified for, even if it means taking a pay cuts. Therefore, an increase in minimum wage will ensure that low wage over qualified workers have the means for vital necessities like housing, food, transportation and health care. Last year more than 200,000 Americans with college degrees were working minimum wage jobs due to our struggling economy. Furthermore, an increase in minimum wage would help stimulate the economy by
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.
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.
Imagine spending your day with lights, sirens, blood, and death. Imagine having someone’s life in your hands every time you go to work. Then imagine working 24 hour shifts only to return home and sleep for a few hours before returning to your second job and doing it all over again just so you can provide for your family. This is the life of emergency medical technicians across the country and many others like them. Now imagine that the teenager next door that work at the local fast food chain makes the same amount of money as you do. Due to the current minimum wage increases being seen across the country, this is being becoming the reality in this country. The increase of the current minimum wage is targeted to help individuals in low paying
Minimum wage is a problem, but most don’t want to raise it. Raising minimum wage will be a big problem now and including the future. Raising minimum wage is a problem depending on a social hierarchy. For many years the U.S had had many protesters and this is a problem according to state officials. Family's around the world are surviving on as little as 4.25 an hour in this case people have to survive off of food stamps and family members. Job owners can choose to higher the pay due to a raise in the company or a downgrade will determine whether they will make below minimum wage. Minimum wage should be increased from 7.25 to 9.00 an hour because of the over qualified, educated, and experienced Americans who are now relying on minimum wage jobs as a result of the struggling economy. Also, increasing minimum wage could help stimulate the economy. But, in order to get the economy back on track the spending power must be in the hands of the Americans who in fact, spend. With today's tough job market most job seekers are willing to acquire positions they are considered over qualified for, even if it means taking a pay cut. Therefore, an increase in minimum wage will ensure that low wage over qualified workers have the means for vital necessities like housing, food, transportation and health care. Last year, more 200,000 Americans with college degrees were working minimum wage jobs due to our struggling economy. Furthermore, an increase in minimum wage would help stimulate the economy by multiplying consumer spending without expanding the state
Minimum wage is different across the United States and varies depending on the cost of living for that particular state. There are currently 5 southern states who have not adopted a state minimum wage. Those states are: Alabama, Louisiana, Mississippi, South Carolina and Tennessee. Presently, there are 29 states have minimum wage rates above the federal minimum wage. I currently live in Germany but my home of record is Arizona. The minimum wage in Arizona is $8.05. Arizona is one of America’s fastest growing states. With a booming economy and a diverse population, Arizona’s cost of living is somewhat low compared to the rest of the United States.
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)
Minimum Wage has been a debacle for a long time, it has been rising at a steady rate rate but it is not high enough for many people, but many economically driven people are worried that the economy will crash if we raise the minimum wage gap up to $15 like many people want. The last minimum wage increase was in 2009 with it being changed to $7.25 instead of $6.55. With inflation $7.25 is worth less now than it was in 2009 which is a problem for the minimum wage workers. Every time the minimum wage gets increased though it affects the economy in a negative way and people who are just barely earning over the minimum wage will get caught with the raise then they will start getting paid minimum wage for work that deserves more than minimum wage pay. Many people have different views on how minimum wage works, many people think that it should be raised by more than double what it is right now, and many people also want it to stay how it is currently due to the stock market and how stocks would all go down causing another recession.
The American society has made huge developments since the Civil War era. Advances in technology, transportation, and home quality have had a wonderful effect on the economy, but at a hefty price. While the standards of living have rose dramatically, it has become harder to produce enough income to acquire them. In the 1930s, a minimum wage act was established to help the victims of the Great Depression out of poverty which is still running today, but now it is hard to live of minimum wage while trying to support a good health or a family. There has been a high demand for the increase of minimum wage, but politicians fear the effects of this drastic change. Writer Rex Huppke and “The Economists” have wrote detailed articles concerning politicians’ ideas on minimum wage and how they plan to address this issue. The narrators address these controversy in their articles, but their writing is varied on the facts, opinions, and main idea of increasing minimum wage.