In my report, I will go into detail and show how raising the federal minimum wage would positively effect the economy. In doing so, I will be discussing how an increase in the federal minimum wage would make a vast improvement on the way many low income families live, and also how raising the federal minimum wage would boost the economy as it desperately needs. In raising the federal minimum wage, one might argue that it would cause a spike in the unemployment rate. The reasoning is that it would
Study shows that wage increases do lower poverty, by 2.4% if wage at $8.00, consistent with other studies. (Washington Post/ Arin Dube) 1. Raising the federal minimum wage doesn’t cause substantial unemployment as most economists agree, including over 600 economists who wrote a letter to Congress urging a wage increase, and the Economic Policy Institute. A. Identify shortcomings of the opposition (fallacies they make, or weaknesses in the evidence they use) 1. Arin Dube’s study would be great, if
At the heart of this plan was the idea that wages must be set and fair. “No business which depends for existence on paying less than living wages to its workers has any right to continue in this country.”(Roosevelt) This plan became the Fair Labor Standards Act, which set the Federal Minimum wage. Minimum wage has increased, slowly, over the years, but has not kept up with its intended purpose. Raising the federal minimum wage to a "fair living wage" level will improve the lives of the working poor
The idea of raising the federal minimum wage that has developed nation wide attention, including protesting and arguments, has caused many discussions on why it could potentially help the economy grow and how it could result in the crash of the economy. Many people feel like raising the federal minimum wage is a must, while others think it will destroy the economy. There are many benefits that come with raising the federal minimum wage, but those benefits also come with many disadvantages. The
Raising the federal minimum wage has been an argumentative topic for as long as I can remember. The United States economy is a free market that is not very predictable. It is complicated and manipulating it can bring a short-term effect that is desirable, but the long-term effects may be bleak. Prices are set as a result of the supply and demand for products and services. Wages are essentially prices for labor, which is a component of the unit cost of products and services (Hazlitt, 1979). Hazlitt
Picture this: You are a single parent of two, you work 40 hours a week plus occasional overtime at a minimum wage paying job, you struggle to put food on the table to feed your family, and then you receive a call from the bank saying that your home is being foreclosed. This is the situation faced by thousands of Americans every year due to low income and wealth inequality. The federal minimum wage (FMW) as of April 2014 is $7.25, which is not enough to keep a family of two above the poverty line.
The Federal Minimum Wage was introduced in 1938 during the Great Depression under President Franklin Delano Roosevelt. Originally, it was set at $0.25 an hour. Since then, it has been increased by Congress 22 times. Currently the minimum wage in New York is set at $9.70 an hour. There is a debate on how much minimum wage should be. Many think that it should be raised to around $15 an hour and some think it should stay the same or even be decreased. The Federal Minimum Wage should not be raised because
percent of all wage and salary workers. Among those paid by the hour, 1.3 million earned exactly the prevailing federal minimum wage of $7.25 per hour. About 1.7 million had wages below the federal minimum. Together, these 3.0 million workers with wages at or below the federal minimum made up 3.9 percent of all hourly paid workers”(Ratio of Minimum Wage). The Federal minimum wage drives debate among people today, and with many wanting the federal government to raise the minimum wage to fifteen dollars
Virginia, the minimum wage is at the federal level of $7.25. An estimated living wage for a family of four in this county is $27.45. This leaves a gap of $20.20 dollars in which the family needs to comfortably live. This tremendous gap occurs in cities all over America. In 2013, more than 3.3 million Americans worked either at or under the federal minimum wage which is $7.25.Though some states have decided to raise the minimum wage to a higher pay rate, others have decided to stay at the federal level.
In 2009 the federal minimum wage of $7.25 an hour has stayed the same since then (“Should We Raise”). Many Americans are living in poverty which they are struggling on a day to day basis. The costs of housing,college, and healthcare are going up in cost because of this many families are living below the standards. The federal minimum wage should not be raised because it would hurt small businesses and increase competition among workers. Raising federal minimum wage would hurt many small businesses