The Benefits Of The Minimum Wage

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.

Raising minimum wage has been an ongoing issue for many years. Similar to every debatable issue, pros and cons are inevitable. In the United States, minimum wage started when the Fair Labor Standards Act of 1938 (FLSA) was passed and minimum wage started at 25 cents per hour. The purpose of setting a minimum wage is to set a maximum workweek and to eliminate child labor. It is defined to be the least amount of money employers are obligated to pay their employees by law. As the years passed, the minimum wage began to increase to accommodate the growing economy. Although the wage has increased from a mere 25 cents per hour to $7.25 over the course of 75 years, living expenses are much higher causing many people to be poverty stricken (Debate.org). President Obama proposes raising the minimum wage, so that it would help minimize the income gap in America. However, most business organizations and the Republicans oppose to the idea, saying that it could potentially lead to more economic problems. While both sides have valid points, which one provides a more compelling argument? In the United States, the minimum wage should be raised in every state; therefore workers can have a more comfortable standard of living, lower the poverty line, and minimize the income gap.

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

There are 156. 4 million people in the US workforce, however 5.2% of those are unemployed. The federal minimum wage is $7.25 an hour; however, each state has its own laws regarding minimum wage and the amount can be higher or lower than the federal minimum, but the employee receives the higher of the two (2015). A higher minimum wage means that employers are less apt to hire someone. Some experts explain this by saying that if an employer values the job at a lower wage per hour than the minimum wage set by the government, then the employer is less likely to hire someone to fill that role. The employer only wants to hire someone when that person will be able to generate some sort of value for the company and positively affect the bottom line. Another problem with a high minimum wage is that potential employees are less likely to want to work if they are able to receive unemployment benefits from the government that will almost equal that which they would receive from working a minimum wage job (Gillikin).

Minimum wage is something a lot of people want to change. Some want to change it to $15.00 an hour, that is double of what it is now, others argue that it should stay the same. Many things would change if minimum wage was raised. People argue that it should be raised, but they don’t stop to think about what the consequences would be. Raising the minimum wage would not only affect many of us in this room, but many people around the United States.

The idea of minimum wage is that workers are guaranteed enough money to live off of. The price of minimum wage is determined by the state, but a federal minimum wage is set. Some states choose to go above the minimum wage, while others, such as Alabama and Louisiana, choose to not have minimum wage at all (Root). Minimum wage is important to society, because it can affect many people’s lives. There are many pros and cons to having minimum wage in the United States. Furthermore, various stakeholders are also impacted by this policy in numerous of ways. Minimum wage is a microeconomics and macroeconomic problem that has many consequences. Therefore, minimum wage has been a great economic issue because of people’s support and opposition to the policy.

In 1938, the Federal Government established a minimum wage through the Fair Labor Standards Act, during the Great Depression. Its stated purpose was to keep American workers out of poverty and increase consumer purchasing power to help stimulate the economy. President Franklin Roosevelt, understood that the minimum wage should be a living wage, he stated “by living wages, I mean more than a bare subsistence level — I mean the wages of a decent living.” Today, the Minimum wage is critical for ensuring that hard work is rewarded with fair pay. However, its value has eroded substantially, factors such as inflation and rising prices are decreasing its purchasing power, and the minimum wage is no longer what it used to be, despite decades of economic growth. Today, a family can no longer live on minimum wage; and a single person working full time on minimum wage is barely above the poverty line. When President Obama gave his 2013 State of the Union address, he advocated raising minimum wage from $7.25 an hour to $10.10-yet a year later, this still hasn’t happened. For many working Americans a higher minimum wage will make the difference between living in poverty or not, furthermore it provides a stepping stone into the middle class for many families. If the minimum wage is increased to equal a current living wage, the income inequality gap will decrease and the quality of life for those living on minimum wage salaries will increase,

Many economists argue that this pay is too low and should be increased in order to raise the standard of living in the United States. The main argument for the increase in the federal minimum wage is that the current wage provides significantly less purchasing power than it did in the past. According to CNN News Reporter Tom Perez, the cost of food, utilities, transportation, and other essentials have gone up, however low-wage workers’ paychecks have remained the same. Perez states that the purchasing power of the minimum wage has been eroding steadily since its peak in the late 1960’s, and the wage today would have to equal over $10 per hour just to equal the purchasing power first established in 1968 (“Raise Minimum Wage”). According to the United States Department of Labor, raising the country’s pay to at least $10.10 would be an important part of strengthening our economy because then the purchasing power would be at the ideal level. This raise for minimum wage earners would put more money in people’s pockets, which will in turn be spent on goods and services, and thus further stimulate economic growth locally and nationally (“Minimum Wage Mythbusters”). In order for businesses to grow they need customers that have money in their pockets because increased incomes will boost consumer demand and the consumer spending that powers our domestic economy. Many experts agree that raising the minimum wage is a key strategy for

Minimum wage is a struggle for many Americans and I believe it needs to be raised. The minimum wage of the United States is $7.25 an hour. It is a rate that isn’t letting many Americans live life comfortably. If the minimum wage was changed even a merely $3.75 it would change people’s lives and will let many people get by. The minimum wage of $7.25 has stayed the same since 2009 and there hasn’t been any effort by the government to change it. Many states have increased their minimum wage, but I hope that the minimum wage rises nationwide and not individually as states.

Did you know minimum wage was $0.25 per hour in 1938? Since then it has raised to a whopping $7.25. Most readers will agree that there is a problem with this current minimum wage, considering the cost of living and salaries, Etc. However, they might not understand the complexity of the issue. In fact, the topic is not simply a question of if the minimum wage should be increased or kept the same, but more of a complex issue involving the different viewpoints on why people agree or disagree. Some reasons why people might agree is: decreasing poverty, increase in government aiding, and cannot afford basic needs. In opposition, opponents of the minimum wage might say it increases poverty, increases unemployment (specifically among unskilled or

Should the government raise minimum wage? Should the government lower or keep the current minimum wage? Minimum wage is a very controversial topic when it is discussed between all parties. For those arguing for minimum wage increase believe that it will bring people living below the poverty line above it. Former President Obama stated, “ no one working forty hours deserves to be living in poverty.” For those arguing against the raise on minimum wage believe that it has more negative effects than just causing citizens to lose jobs. However, I believe that the government should control the minimum wage and if it is to be raised than it needs to be done in a manner that wouldn’t negatively affect the individual or the

Raising the pay of one’s workers is proven to increase productivity in the workplace: Worker productivity increased 104% while the minimum wage rose 101% between 1947 and 1973 (Henderson). Common sense also plays a role here. If you were being paid a penny an hour when you really deserve a quarter an hour, would you work your hardest? Would you begin your work enthusiastically at full-throttle? No, you wouldn’t, and the second you saw a better opportunity at another place of employment, you would jump to it. Why should you feel loyal towards a job or company which does not pay you enough to live? The federal minimum wage should be raised in order to ensure the effort and loyalty of workers.

If you had minimum wage at 15$ people would be crazy for some fast food restaurant job just because some people don't even get paid 15$ an hour. why would you make it 15$ for people who don't have an education.For the people who have went to college and only make $13.50 an hour.

In the United States, there are more than 30 million people who work in jobs that pay poverty wages and provide few if any benefits (Low, 2015). The lowest income bracket has been getting increasingly poorer and since 1968, the real value of the minimum wage has progressively declined (Dietrich, 2004). Most low-wage employers do not offer health insurance to their employees and if they do, premiums are too high for employees to afford. Sick pay and retirement benefits are not likely to exist in these types of jobs. Due to a lack of training or continuing education benefits, most workers are unable to advance themselves and are locked into these low-wage positions. Although many people assume that fast food restaurants and large chain stores are the only low-wage employers, they are wrong as low-wage, low-reward jobs are all around us and include such jobs as security guards, nurse’s aides, child-care workers, pharmacy assistants, and hair dressers. Low-wage service workers have little power to change their situations as many political, economic and corporate decisions have weakened the bargaining power of the average worker (Low, 2015). Unions that once negotiated contracts that propelled autoworkers, steelworkers, machinists, and truck drivers to middle-class status have grown weaker over the years (Greenhouse, 2015). Currently, only 11 percent of workers belong to a union which is a far drop from the 35 percent back in the 50’s and 60’s (Greenhouse,

The majority of people working minimum wage are Raising a minimum wage can reduce expence for social program. Low income people are mostly alike to receive an additional support of government, their run social program to support thenselves and their families.By raising a minimum wage most of people can take care themselves and help fort their family need without leaningas heavily on social programs.The money government spent to assiste them can be reallocated to help other need.