The Benefits Of Raising The Federal Minimum Wage

Several examples of data and statistics from studies elucidate the harmful effects on small businesses and in addition the compelling of companies to close as a result of the increase of minimum wage. According to a Gallup poll that took place in 2013, 60% of small business owners agreed that an increase in minimum wage would be harmful to their small businesses (Should the Federal). Small businesses do not have the money supply that chain corporations do. Naturally, if they had to pay their employees more, it would be harmful to them. Several Walmart stores have closed and Walmart stores that were yet to open have closed as a result of an increase in the minimum wage (Should the Federal). An increase in the minimum wage must even have harmful effects on larger businesses. They obviously employ several more people than a small business, so they have to pay each worker more resulting in a net loss of a lot of money from the chain. Additionally, in several work places, if the minimum wage were increased, the wages of those who hold higher positions would have to be increased. For example, if the amount of money that the minimum wage dishwasher or table busser in a restaurant increased, then the chef and manager would need to be paid accordingly. If the minimum wage were to increase, it would be detrimental to both small and large businesses.

Raising the minimum wage is a very important public policy issue. Raising the minimum wage is a responsible policy that is supported by research and demanded by the American public. Each day, minimum wage workers across the country struggle to make ends meet and provide a decent life for their kids (Scott & Perez, 2016). Raising the minimum wage is a controversial issue, many believe that raising the minimum wage would only provide low wage workers more money to spend. However, the benefits can be endless for low wage workers. If minimum wage is increased across the United States it would afford the people effected more opportunities for financial freedom. Increasing the minimum wage would raise the standard of living for low wage workers, allow families to be removed from poverty, allow for government welfare spending to be reduced and lastly additional income being spent would positively affect the economy.

The first federal minimum wage mandated by the government was in 1938. When the first minimum wage became law in 1938, it was set at just 25 cents. Today, the federal minimum wage mandated by the government is set at $7.25 an hour. “Many states have their own set minimum wages, which are currently above $7.25 per hour already. Currently, 29 states and the District of Columbia (D.C.) have minimum wages above the federal minimum wage of $7.25 per hour. D.C. 's new wage of $10.50 an hour makes it the first jurisdiction to cross the $10 threshold among the states,” (Halvorson). The last time that the federal minimum wage mandated by the government was changed was over 8 years ago. “The last time Congress voted to raise the minimum wage to its current rate of $7.25 an hour was on May 24, 2007. Since then, the cost of life 's essentials has shot up. Groceries cost 20% more, a gallon of gas costs 25% more, and average tuition at a community college increased 44%. But the minimum wage remains at

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. There are certain questions on this topic that should be addressed, such as why is poverty and wealth distribution an issue in the United States today? Should the FMW be raised and why? How would raising the FMW affect American families? What are

Raising the federal minimum wage to $15 an hour can have detrimental effects on society. Some issues that may arise are increases in unemployment and small businesses not being able to handle the financial burden, which will lead into job benefit cuts. Furthermore, a rise in minimum wage will cause inflation and businesses to raise the prices of their goods and services. People purchasing power will continue to stay the same; the struggle to close the gap between products and services will not

The minimum wage has been a topic of discussion for decades. It was introduced in the Fair Labor Standards Act in 1938, originally set at $0.25. It has since been raised 29 times. The current federal minimum wage is $7.25 and was set in 2009 (11). This is the reason many people are upset with the wage not increasing. It would take $8.09 in 2016 to equal the $7.25 from 2009. The minimum wage needs to be increased to boost the economy and lift families out of poverty. However, the minimum wage should not be increased to more than $10 per hour to prevent an increase in the price of consumer goods and prevent a spike in high school dropout rates.

​Increase in the amount of the federal minimum wages distributed to working American’s can affect the process of the economy as a whole. What is minimum wage you ask? Minimum wage is the minimum amount of money paid to you at a job. It is a set amount of money that is illegal to go under when paying an employee for work. In the United States of America the federal minimum wage varies from $7.25 to $9.19. The federal minimum wage for jobs that include tipping is only $2.13 per hour, assuming that the difference would be made up in the tips. The initial law began in the early 1900’s; to be exact it was in 1938. This was all initiated when Franklin D. Roosevelt was President.

Businesses would be hurt because they would lose money from having to pay their thousands of workers $15 an hour. Also, in attempt to keep their income, businesses would have to lay off more than half of their workers, hurting people more than helping them. If minimum wages are raised, there would be millions more jobless people, and possibly thousands more homeless people. Is that what you want? Do you want millions to suffer just so a few thousand people will be paid $8 more an hour? A raise in minimum wages will throw people off their tracks, and millions have to live more scarcely than they were used to living due to lack of income. The only thing that would happen to the majority of the population if minimum wages were raised is losing their jobs. As you can see, a raise in minimum wages would be fatal for millions of

From an economic perspective, one can see that raising the minimum wage to $15 per hour will cause firms to decrease employment. If the cost of each worker increases, firms will not be able to hold as many workers and will be forced to lay people off or suffer a loss in profit. The problem with raising the minimum wage is that it creates a downward rigid market and causes firms to either sell its goods and services at a higher cost or lay off workers to balance out the increase in cost. Creating a market where wage is not flexible and is above the real market equilibrium means that firms will simply decrease employment and increase prices. This kind of unemployment is known as

The current federal minimum wage was established by the Fair Labor Act of 1938 making it over a century old. “the stated purpose of the federal minimum wage is to keep America’s workers out of poverty and to increase consumer purchasing power in order to stimulate the economy. Over the years, the act has been revised to accommodate for the inflation in prices, allowing the minimum wage value to rise ahead with it. Along with the creation there has been people who have argued for and against raising the minimum wage. The two opposing camps are the democrats who believe that it should be raised because they value the pursue of happiness and the republicans who believe it should not change because they value security. The issue with minimum wage

Minimum wage introduced by the congress as the subdivision of the Fair Labor Standards Act (FLSA) in 1938. At that time, congress set the minimum wage at 25 cents an hour. According to Tricia Hussung, Business Analyst, in 1968, adjusted for inflation, the federal minimum wage

In recent years, the demand for an increased minimum wage has erupted across the nation. During the ongoing debate, a few states, cities, counties, and companies have taken the initiative to raise the minimum wage of $7.25 per hour to the varying wages of $7.50-$11.50 per hour. According the United States Labor Department, 29 states and the District of Columbia pay above the minimum federal level of $7.25 per hour. The raising of the minimum wage has numerous supporters; however, there are individuals who are opposed. The analyzation of ethical theories, such as, utilitarianism, altruism, and egoism will be utilized to obtain a more significant understanding of the importance to raise the minimum wage to a livable wage.

The federal minimum wage originated in the Fair Labor Standards Act (FLSA) signed by President Franklin Roosevelt on June 25, 1938. The FLSA originally only covered about 38 percent of the labor force, mostly in the transportation, manufacturing, and mining industries. As the years went on the FLSA began covering more and more people. Over the years, Congress significantly expanded the coverage and increased the wage rate. Over the course of 76 years the federal minimum wage has raised 22 times (Wilson). The first minimum wage stood at 25 cents an hour (Sherk). The last minimum wage increase occurred in 2007, when Congress raised the wage slowly from $5.15 an hour to $7.25 an hour in July 2009 (Sherk). Congress typically raises the minimum wage during times of healthy economic growth and low unemployment.

Creating jobs, raising minimum wage, donating to the poor are not going to erase the poverty out of the United States of America. The government defines poverty as the bottom fifteen percent of annual income. No matter what one does to increase a person’s income there will always be someone in poverty. Across America there are always charities, religious groups, and civic clubs who are giving to the poor--from food giveaways, clothing giveaways, free tutoring, free health screenings, whatever else there is constantly something for the poor to benefit from. The problem is that people want to help, but if they are constantly giving the needy these items, services, or money, then are the poor becoming dependent? When will one person stop

The most prevalent and steadfast myth surrounding the raising of the federal minimum wage is that it will doom the economy. This might seem logical at first, but just think about it for a second. Why do minimum wage employees need more cash? The answer is simple: To spend it, to buy the things that they and their families need to survive. “Most minimum wage workers need this income to make ends meet and spend it quickly, boosting the economy. Research indicates that for every $1 added to the minimum wage, low-wage worker households spent an additional $2,800 the following year” (Fair). Furthermore, EPI estimates that if the federal minimum wage were raised to $10.10 an hour, it would result in over