The Benefits Of Raising The Minimum Wage

831 Words4 Pages
"No family gets rich from earning the minimum wage. In fact, the current minimum wage does not even lift a family out of poverty." -- Senator Jon Corzine
In 1938 Congress passed the Fair Labor Standards Act setting the first federal minimum wage at 25 cents an hour. Since then it has been increased 23 times and currently stands at $7.25/hour. In 2011 around 3.7 million Americans earned the minimum wage. There are two types of workers who earn the minimum wage- young workers(still in school) and old workers(out of school). Statistics show that minimum wage earners are likely to be from low income households and are likely to be working part time. Former President Obama supported a minimum wage increase but it failed to pass because of differences within the Democratic Party. Recently Senator Tom introduced a bill to raise the minimum wage to $10 but it is unlikely to pass in a Republican controlled Congress. The debate over minimum wage can be found at all levels of society from the federal government to the states. The current minimum wage is not a living wage and immediate steps must be taken to raise it. According to the models of prominent economists, the quality of labor happens to be directly related to the wage rate. This means that the minimum wage mixes up the climate within the workforce by increasing high quality labor, which can be hired (Davies). Thus, by raising the minimum wage, the
Get Access