The Complex Subject of Minimum Wage in Our Economy

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The legally established minimum wage is a complex aspect of our economy. On the surface, the idea is simple: the minimum wage fixes the minimum hourly amount an employer must pay his employee. But at a deeper level, calculating the economic impact of a minimum wage is a challenging task full of projections and speculations, and with this uncertainty comes contentious political debate. Economic liberals argue that the minimum wage should be aggressively raised, while conservatives argue that it should remain at its current state.
Ultimately, a combination of historical evidence, economic analysis, and an understanding of psychology suggest that we should not raise the minimum wage. The minimum wage makes low-skill work less affordable to employers, meaning that fewer people can be hired. Since work experience is a vital part of building a successful career, this means that fewer people will have the opportunity to move up the economic ladder. Rather than institute a simple, short-term minimum wage increase, extensive training programs should be implemented to help give low-skill workers real-world knowledge and skills. Likewise, employers should be granted tax incentives for hiring more employees.
The minimum wage has had an effect upon our economy for over 75 years. When the Fair Labor Standards Act was signed into law by President Franklin Delano Roosevelt in 1938, it set a federal minimum wage, stipulations for overtime, and minimum working conditions for child labor
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