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.

The minimum wage was established in the United States by the Fair Labor Standards Act of 1938 at 25 cents per hour. These laws are broadly supported by the public. Congress enacted these rules to combat “labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and the general well-being of the workers” (Sharp, 2013 p. 71). The purpose and intent of

Minimum wage is an important and hot topic throughout the world, especially America. The minimum wage is the lowest amount of salary that an employer can give to their employees for their work. The federal minimum wage is covered under the Fair Labor Standards Act, also known as FLSA. The FLSA covers standards for government, local, and state employees, including overtime pay and record keeping. This protects the rights of the employers. Franklin Delano Roosevelt, FDR, was the first president to establish the idea of minimum wage in 1938 due to the economic downfall of the Great Depression. (“History of Minimum Wage”) The Great Depression was a huge recession for the economy and for the people. Since FDR applied the minimum wage, the minimum wage keeps increasing over the years. According to Bebusinnessed website, the first year with minimum started at twenty-five cents an hour, which is equal to around four dollars and fifteen cents in USD in present currency (“History of Minimum Wage”). Over time and many presidents later, in 2016, our lowest minimum wage is seven dollars and twenty-five cents. From the numbers presented on this website, the minimum wage seems to be increasing and getting better with time, but in fact, the government is not to kept up with the current “real” dollar amount. Nowadays, parent employees cannot fully support their children. The real question, in our society, should minimum wage be increased or decreased in order to fulfill both the government

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)

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

The federal minimum wage was established in 1938 as a part of the Fair Labor Standards Act (FLSA). The FLSA established a number of constraints regarding labor including minimum wage, maximum work week, lowest employee age of 14, and other regulations. The federal minimum wage was “first established during the Depression, and it has risen from 25 cents to $7.25 per hour since” (Wihbey 1). The FLSA was established to protect the citizens and ensure a safe and fair workplace. Minimum wage was specifically included in the FLSA to ensure that employees would not be unfairly working for incredibly low wages. When minimum wage was first introduced to the US, it was determined to be “unconstitutional” in a court case. Since then, the wage has been adjusted for inflation about every 10 years.

As a result of the Great Depression, in 1938, the federal minimum wage was put into effect as a part of the Fair Labor Standards Act. The government established the federal minimum wage to ensure that employers were not underpaying their employees, and many states also have set other varying minimum wages as well based on the cost of living in those particular areas. According to the US Department of Labor, Wage and Hour Division, “The federal minimum wage ranged from a low of $3.09 in 1948 to a high of $8.67 an hour in 1968” (Pye, “No we shouldn’t raise the minimum wage”). Also, according to the US Department of Labor, Wage and Hour Division, “The historical average minimum wage was $6.60” (Pye, “No we shouldn’t raise the minimum wage”). Many supporters of raising the minimum wage want to increase our current federal minimum wage of $7.25 per hour to $15 per hour, which is more than double the average, more than twice the current, and almost twice as much as the all-time high minimum wage. James Sherk, Senior Policy Analyst in Labor Economics, concluded the following from his research: “Congress typically raises the minimum wage only

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).

In our modern society one of the seemingly least controversial topics is the minimum wage. The popular opinion wants to raise the minimum wage, but is the popular opinion always right? Throughout recent years, politicians have made promises to raise the minimum wage to help low-income earners live a better life. Contrary to popular belief, raising the minimum wage actually hurts low-income earners and low-skilled workers. We must first define a low-skilled worker. A low-skilled worker does not mean that particular employee is not intelligent; it simply refers to a worker who cannot perform as efficiently due to low educational attainment. Through this paper, I hope to inform you, Mr. Randall L. Stevenson, and our company, AT&T, about the disadvantages of raising the minimum wage.

The United States Government established the first federal minimum wage in 1938. Since its inception, most states have also instituted their own minimum wage requirements. The purpose is to ensure that employers are compensating all workers fairly, by preventing them from paying below a mandated level. These laws were enacted to help safeguard the welfare of American workers as a result of the economic instability felt during the Great Depression. Although they were designed to protect workers, history has shown that they often end up causing more harm than good to both the workers they are intended to help and the economy as a whole. This is explained by the Cato Institute’s Mark Wilson in a 2012 report as he states:

Introduced in 1938 as part of the Fair Labor Standards Act to help with the Great Depression, the minimum wage was the first form for federal action to make sure employers are paying their labors. Started at just $0.25, the current federal minimum wage is $7.80, but many states have their own minimum wage, some higher than the federal minimum wage and some lower. The minimum wage makes sure that the workers have a sustainable income and are not paid very low. Unfortunately, in this time period, the current minimum wage is not enough to survive without extra income. Kevin A. Hasset and Michael R. Strain point this fact out in their article The minimum-wage debate, “In addition, workers who earn the minimum wage are generally not the primary

The federal minimum wage was created during the Great Depression to increase finances and secure workers’ rights, but the current rate of $7.25 per hour is too low, because it is not based on productivity, which should be the case. Currently, employees get paid less money than what they could make years ago. The federal minimum wage, in 1968, adjusted in 2014 for inflation, was $10.75 (Lester). In other words, the federal minimum wage, in 1968, was $3.50 higher than the current minimum wage. Five year ago, workers had more income than today, allowing employees to afford more needs. Additionally, in 2012, The Huffington Post published an article, by Caroline Fairchild, associate business editor, that

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).

Companies and small business’s pay their employe’s hourly wages based on a minimum wage. Today in America we have many hard workers who are working for minimum wage which consists of $7.25 per hour. There is some businesses that believe all employees should be paid at minimum wage while other businesses pay well over minimum wage. Skills, attitude, responsibility and work ethic all affect how employers base employees hourly wage. When looking at the economy the government should not increase mnimum wages, there are many factors that affect minimum wage such as elasticty of demand, and how education and skills can increase minimum wage.

President Franklin Roosevelt endorsed the federal minimum wage law in 1938 while the Great Depression was at its utmost insolvent position. Because at this point in time the economy was at its lowest, the sole purpose for its enactment was to keep the majority of Americans out of poverty and increase consumer demand. Following the 1960’s, the minimum wage has had a very gradual increase to the point where it is now at a standby. At this moment with a recession occurring, minimum wages have not brought any benefits to those working for such a limited pay. In fact, it has affected an amount of factors rather than actually keeping the overall population out of impoverishment. Although opponents claim a rise in minimum wages will affect