Raising Minimum Wage

“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.

An increase of a couple of dollars per hour or more in the minimum wage could make huge improvements in the difficult existence of the working poor, perhaps allowing them to exit the debt treadmill and stand a better chance of eventually rising into a revitalized middle-class. Researchers at the White House Council of Economic Advisors found that an increase to $10.10 an hour would raise wages for 28 million Americans about nine million of those due to the ripple effect. “According to a 2015 report from the National Low Income Housing Coalition, a worker must earn at least $15.50 an hour to be able to afford to rent a modest one-bedroom apartment, and $19.35 for a two-bedroom unit.”

It is a common misconception that the government would have to spend more money in order to raise the minimum wage any higher than the current amount. However, this belief is false. It has been found that raising minimum wage to $12 an hour by the year 2020 would reduce public assistance (government benefits provided to those in need) by $17 billion every single year (Cooper). This is because fewer people would need public assistance due to having a higher income and no longer having to rely on the government. Research also shows that an increase to $10.10 hourly would take $7.6 billion off the amount spent income-support programs annually (ProCon). Both these pieces of evidence are extremely significant, as spending less on these programs will allow for more money to be put towards other programs and can possibly lead to less government deficit

In 1938, the first national minimum wage laws in the United States were passed as part of the Fair Labor Standards Act, which served as “a floor below wages,” to reduce poverty and to ensure that economic growth is shared across the workforce. Today, many people who work for companies that pay at or near the minimum wage and remain near or below the poverty level rely on government health and food security and income programs to supplement their living expenses. Since 1938, there have been many additional policies to the Fair Labor Standards Act that have changed many things, such as increasing the national minimum wage numerous times to the currently salary level, which was set in 1997. The Fair Minimum Wage Act of 2007 was a policy to change the federal minimum wage from $5.15 to $7.25 in three additions, which began in July of 2009. (http://www.dol.gov/whd/regs/compliance/posters/minwagebwp.pdf)

Raising minimum wages is a contestable issue because it is debated in wide and varied audiences. Minimum wage is near the top of economists’ interest; they are looking for the connection between low wages and poor job markets. Each country sets its own laws and regulations regarding wages. For this reason, it has significant importance to policy makers and workers in each of those respective countries. Social activists have also found interest in the topic due to the fact that those who earn a minimum wage tend to come from poor minority families. Furthermore, the average American should have the strongest interest in the conversation because most citizens have been paid a minimum wage at some point in their life. Due to this fact, the idea of a significant federal minimum wage increase in America is open for debate specifically to rejuvenate the job industry, improve living conditions for citizens, and strengthen the economy as a whole.

On July 24th, 2009, the United States of America raised the minimum wage to $7.25. However, six years later the minimum wage rage remains the same. It is time once again for the federal government to raise the minimum wage to spur the economy. Raising the minimum wage would help the American economy and the daily life of the citizens for a variety of reasons. The first topic is that it not only would help the people but it also would help the economy as a whole. The second topic is that companies are already raising the minimum wage because of the lack of money workers get. Finally the third supporting idea is that the states are also raising it over the federal minimum wage and also how can help poverty. There are many more topics on why the minimum wage should be raised but these reasons are the most important.

1938 was the year that minimum wage was first established by President Theodore Roosevelt. At the time it was only $0.25, which is equivalent to about $4.13 today. However, even at that amount people, the 25-cent raise resulted in significant job losses. And if it didn’t work then, it wouldn’t work now. If an employer has tight budget compensation, and the minimum wage is raised, it means they can longer afford to pay their

According to the U.S. Census Bureau, nearly 14% of the nation lives below the poverty line, the current population is 326,474,013, and 45,706,362 of the population lives in poverty every single day. One of the reasons why such a large chunk of the population is in poverty is because they are not being paid a reasonable salary for them to support themselves and their families. Raising the minimum wage can lead to problems, but gradual increases are made over time, it could be beneficial for millions of people around the nation. The positive effects of raising minimum wage is what makes it worth it. A raise in minimum wage can be beneficial; however, it must be a

It's still a relatively new topic, minimum wage. Introduced in 1938, by President Franklin Roosevelt, it was a part of the creation of the Fair Labor Standards Act (FLSA). This act established “minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers.”(United States Department of Labor). At the present time of 1938, 25￠was quite a significant amount of money. However, now, the federal minimum wage has been set at $7.25 by President Obama in 2009. Within the past seventy years, many states have desired to raise their own minimum wage higher than that of the federal minimum. Presently, twenty-nine states have elected to pay their workers more rather than giving them the short-end of the stick.

A 2014 study found that raising the minimum wage in California to $13 per hour would “significantly benefit health and well-being.” Another 2014 study by the Bay Area Regional Health Inequities Initiative found minimum-wage workers are more likely to report poor health, suffer from chronic diseases, and be unable to afford balanced meals. Moreover, Minnesota State Health Commissioner Edward Ehlinger stated that raising the minimum wage in Minnesota from $6.15 to $9.50 “the biggest public health achievement... in the four years I've been health commissioner... If you look at the conditions that impact health, income is right at the top of the list... Anything we can do to help enhance economic stability will have a huge public health benefit. This is a major public health issue.” A minimum wage raise would also have a positive impact on education, increasing attendance and decreasing dropout rates. Teens who live in poverty are twice as likely to miss three or more days of school per month as opposed to those who are not. Also, although some teens work for extra spending money, in low-income areas, many work to support their whole family. This would allow them to work fewer hours for the same amount, thus providing for more time to dedicate to schoolwork. A 2014 study by the Assistant Professor of Economics at West Point stated that an increase to $10.10 would lead to a 2-4% decrease in the chance of a low-socioeconomic status teenager dropping out. Finally, another study by the President’s Council of Economic Advisors said raising the minimum to $12 by 2020 would result in a 3-5% decrease in crime and thus a societal benefit of up to $17 billion

According to the "Raising, the Federal Minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost" by David Cooper, if the federal government increase the minimum wage it would add billions of dollars into the economy, adding thousands of new jobs. David Cooper states that” A minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs.” These results display how raising the minimum wage can be beneficial to many people through job growth. Supporting that, if the federal minimum wage was to rise it would be a good thing for people and would reduce the unemployment rate by creating many more employment

“No person can maximize the American Dream on minimum wage” (Todd). For several years, minimum wage has been an issue among the citizens and politicians in agreeing on the exact value. This is based on the reason that minimum wage determines living standards for the population as well as the economy of a country at large. Minimum wage is regarded as the lowest level of remuneration that employers are needed to pay their workers under various legal jurisdictions. Currently, almost every person in the US including the wealthy, middle income and the poor have a great urge for having an increased pay per hour due to the current economic demands. Therefore, based on the needs of the populations and looking at recent economic studies and research,

Minimum wage should be increased to help reduce poverty in the United States. Increasing the minimum wage would also help stimulate the economy by giving low-income workers, who often live paycheck to paycheck with little or no savings, more money to spend. The national minimum wage has not been increased since 2009, and over the years has not kept pace with inflation, leaving a large gap between minimum wage and the cost of living. A boost in the national minimum wage would also encourage higher education and lower unemployment rates. The national minimum wage should be increased to help reduce poverty, boost the economy, encourage workers to join the workforce and continue their education, thereby raising the standard of living of American

In 1938, the first national minimum wage laws in the United States were passed as part of the Fair Labor Standards Act, which served as “a floor below wages,” to reduce poverty and to ensure that economic growth is shared across the workforce. Today, many people who work for companies that pay at or near the minimum wage and remain near or below the poverty level rely on government health and food security and income programs to supplement their living expenses. Since 1938, there have been many additional policies to the Fair Labor Standards Act that have changed many things, such as increasing the national minimum wage numerous times to the currently salary level, which was set in 1997. The Fair Minimum Wage Act of 2007, from the United States Department of Labor Wage and Hour Division, was a policy to change the federal minimum wage from $5.15 to $7.25 in three additions, which began in July of 2009. (U.S., 2009).

Higher labor costs have a clear impact on the operation of businesses, so it is important to take into account the scale of any changes to the minimum wage. In February 2014, the nonpartisan Congressional Budget Office issued a report, “The Effects of a Minimum-Wage Increase on Employment and Family Income,” that looks into two options that should be considered. Raising the minimum wage to $10.10 or to $9.00. In the report there are distinct trade-offs. If the minimum wage was raised to $10.10, there would likely be a loss of about 500,000 jobs across the labor market, but about 16.5 million low-wage workers would see substantial gains in their earnings on a weekly basis. If raised to $9.00, the labor force would see a reduction of 100,000 jobs, but an estimated 7.6 million low-wage workers would see a boost in their weekly