Pros And Cons Of Raising Minimum Wage

“The minimum wage is the minimum hourly wage an employer can pay an employee for work. Currently, the federal minimum wage is $7.25 an hour (part of the Fair Labor Standards Act) and some states and cities have raised their minimum wage even higher than that.” minimum wage was first introduced during the great depression in 1930s. Before it was introduced thousands of people were forced to work in horrible conditions for pennies a week. Early attempts on minimum wage was ruled unconstitutional by the U.S supreme court, because it restricted people from deciding what they wanted to pay their workers. So employers still made there workers, work in horrible condition through the great depression. Now that poverty is a huge national issue. President Franklin D. Roosevelt made sure he would protect workers it was part of his mission as the president of the united states of america. After being reelected in 1936 he signed the FLSA in 1938. Which put into place a national minimum wage of 25 cents an hour. After the law was passed the minimum wage was changed almost every couple of years because the cost of living is very high. In 1997 bill clinton allowed states to make there own minimum wage. Today the minimum wage is 7.25/hour there is continuing debate over whether that 's a fair amount of money to support someone there days. Labor activists want the government to raise it while other point out the negative effects it would have on the

“A 15 percent increase in the minimum wage nationwide would destroy about 290,000 to 590,000 young people's jobs, and about 400,000 to 800,000 jobs overall” (Henderson, David R). Due to the Fair labor Standards act, the federal minimum wage, or the lowest you can pay an employee for work, currently stands at $7.25 an hour. Although a number of Americans think that raising the minimum wage would benefit our country, it would actually bring a number of problems to our economy, such as a rise in job loss and high school dropout.

Rex Huppke, a journalist for the Chicago Tribune, deftly discusses the pros and cons of raising the minimum wage in the last of a two-week series in “In the Minimum Wage Debate, Both Sides Make Valid Points”. Although I am for raising the minimum wage, Huppke’s presentation of the opposite argument does make one think beyond the gut reading that everyone deserves more money. Huppke’s argument that a large number of minimum wage earners are student of the elderly leads me to believe that a tier of wages would take care of the issue. For example, anyone working less than 35 hours a week would be paid at a certain rate; with full time getting an increase. I am not concerned by the argument that a higher minimum wage leads to lay-offs or price increases when most products sold in America are manufactured by cheap foreign labor. There is already a huge profit margin that could sustain such an increase. Rather than give discounts on goods and services, thus preventing employees from exercising the right to shop, stay or eat wherever the employee chooses, these employers trap workers into giving back the very money they have “slaved” for.

For many years, there has been an ongoing and strong debate in the United States on whether or not minimum wage should be raised from $7.25 an hour to over $10.00 an hour. Minimum wage is the lowest amount a company or employer can pay their employees. Many argue that the benefits of raising minimum wage surpass the negatives, yet many also disagree. But as a whole, the benefits of a higher minimum wage clearly outweigh the costs that come with it. Minimum wage should be raised because it would increase economic activity, reduce poverty levels, and allow for less government spending.

Since 1938, when the minimum wage was first introduced (at a rate of $0.25 an hour), the federal minimum wage has increased 22 times. The minimum wage is the salary floor, or the lowest possible rate that employers can pay employees.

The minimum wage in the United States has been an ongoing controversy for many years now. The first minimum wage was established in 1938 (Reich, 2015, P. 3). That minimum wage started out at .25 cents an hour; compared to today’s higher wage of a government standard of $7.25 an hour. Many people believe that the minimum wage should be more so that those who live below the poverty level in the United States will decrease, however in many other people’s opinions the minimum wage should be the same. The minimum wage should stay the same at a low $7.25.

The minimum wage has been around since the Great Depression in 1938 under the presidency of Franklin Delano Roosevelt. Initially, the government set the minimum wage at $0.25 per hour to now $7.25 an hour, although some states decide to have a lower rate than the national rate or have no minimum at all. The heated debate over raising the national rate of the minimum wage has been on everybody’s lips since there was the question of whether to alter the rate or not. I support the raising of minimum wage because of the fact that raising the minimum wage would improve the income of people in poverty and economy of America. For the same reason, raising the minimum wage would lift the incomes of about 18 million hard-working people.

If minimum wage was increased many jobs would be lost. Employers would be forced to fire people because they wouldn’t be able to afford to keep them. “In 1938 minimum wage was raised by twenty-five cents, resulting in many people losing their jobs” (Cato Institute). Unemployment rates would be higher than ever. Raising the minimum wage would also make it more expensive for business’ to run, giving them no choice but to close down sending more people out of work causing the unemployment rate to go up (ProCon.org). Raising the minimum wage would result in higher prices, which would then result in less items being sold (ProCon.org). Without money

Minimum wage has a big impact on the economy and has the potential to harm it. Raising minimum wage to the right amount is a key to keeping the economy safe. If minimum wage is increased to $10.10, it will increase economic activity and create more jobs. Raising minimum wage too high will harm businesses and the economy. In an article by Lauren Dixon, she wrote that “If a new minimum wage is set low and close to labor costs, there would be minimal harm to business; if set too high,

An increase of the federal minimum wage would improve the lives of millions of Americans. It is a step towards lifting these people out of poverty. The federal minimum wage is supposed to enable Americans to earn a living wage, but it has not been raised in 8 years, and many people who make wages at or close to this wage are not able to survive on this pay alone. They rely on subsidies from the government and the community to provide some of the necessities they cannot provide for their families. An increase of the federal minimum wage is going to make these families more self-sustaining (CBO, February 2014).

Minimum wage is the amount of money that the government says is the least amount that a business can pay to an individual. The debate on raising minimum wage has been ongoing for a long time. In my opinion minimum wage should not be raised. If minimum wage was raised then there would be higher unemployment because businesses wouldn't be able to afford hiring someone. Raising the minimum wage would mean that the businesses will pay higher than equilibrium price and this means that there would be a surplus. Whereas if the price was below equilibrium price than it would cause a shortage. A business would have to increase the price of their products or services. This would be known as inflation. This would lead the unemployment rates to go up because

Since 2009, the federal minimum wage rate for employees has been $7.25 per hour. In retrospect, this is hardly enough pay to take care of one’s self-- let alone a family with children. If a person were to add up the average cost of living for one week and then compare it to the average amount of money earned in minimum wage for that week, it would be apparent that there is little to no extra money for emergency situations. Increasing the minimum wage has been a major controversial issue; Democrats are proponents of raising the minimum wage, however, Republicans are trying to stop the movement. Many economists have discussed how raising the minimum wage could benefit millions of people and businesses, yet Republicans still hinder the

Minimum wage is a becoming more of an issue in the United States of America. Some argue that it needs be raised, this is so they can have more money available towards helping their family and paying off many various debts. This topic arises from changing living conditions and public views about the poor (Dreier). It would benefit the nation if the government could put in place a national minimum wage raise, or maybe make it a requirement that businesses make it slightly easier for all of their employees to earn a raise. Those against the raise generally don’t have a solution but they simply want it to stay the same and would prefer an individually earned raise, rather than everyone automatically getting one.

Like I’ve said, the minimum wage in 2012 would have been $21.72 if it kept pace with the income growth, “goods and services have increased a lot but the minimum wage has remained low.” With minimum wage increasing workers will be able to own a home and support a family of four. Minimum wage staying where it currently is, working wouldn't be able to afford goods which would lead to an increase in poverty. Proponents of raising the minimum wage to a living wage argue that doing so would give workers and their families a better chance of climbing out of debt and poverty.” One of the most important reasons why the minimum wage will be a tremendous help to America is because it will decrease the unemployment rate and will help millions of people get out of poverty. Like Michael Reich informs that increasing the minimum wage will “lift nearly one million people out of poverty” and help them afford to have a roof over their head. When getting “a higher minimum wage, [it will] induce some automation and slightly higher prices, it [will] increase worker’s productivity and increase workers' purchasing power.” This is what increasing the minimum wage will do to minimum wage workers who are on the edge of going into poverty. Also, for productivity to improve, “a modest increase needs to happen which will reduce

The minimum wage is the lowest possible wage that employers can legally pay their workers. Today, it seems like everyone has their own opinion on the minimum wage. Should it be abolished, raised, or should it remain the same? I will talk about the pros and the cons of raising the minimum wage as well as my own opinion if it should be raised or if it should stay the same.