The Effects Of Increasing Minimum Wage On The United States

In a world governed by the rule of currency has a major effect toward the amount an individual owns. The current world economy, labor is required in order to supply services to whomever is willing to buy. The amount of money distributed and earned throughout the economy feeds the nation 's GDP, which shows the stability of the overall economy of that nation. There is an imaginary sequence that must be established in an economy in order to balance both labor and revenue to stabilize a country’s economy.

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

Who gets paid the minimum wage? Well, at some point in our lives we all have been paid the minimum wage. But who are those people earning the minimum wage right at this moment? These are the people who have menial jobs. They work in restaurants, retail stores, bars, and maintenance services (OEA, 9). In 2014, the city of San Francisco proposed an initiative indicating that it would raise the minimum wage to $15 by 2018 (Ballotpedia). So would a typical low-wage worker and low-income family benefit significantly from a minimum wage increase? It would probably help them but not that significantly. In today’s economic standing, people earning the minimum wage are considered below the poverty level if living in San Francisco. In my opinion, the minimum wage increase will give a slight rise to the quality of life for those working on minimum wage as well as their families and could potentially result in narrowing the income inequality gap for workers.

Recently there has been some debate about whether we should raise the minimum wage in America. Now there would be some ups and downs for both of them, but I personally think we should raise it. Mainly because people are barely getting by bill to bill. Plus some people have some kids, they have to take care of and have to buy them food as well. But there would be a risk about the economy and a lot could happen if we just raised maybe if we even raised five dollars. But I have some very key reasons why think we should raise.

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

The fight for a higher minimum wage has been going on for a long time. People are demanding it to be $15 an hour. Although raising the minimum wage seems like it would be amazing, there are a lot of negatives with it. With the economic theory, we can see the effects of raising minimum wage on the economy.

“In 2014, 77.2 million workers age 16 and older in the United States were paid at hourly rates, representing 58.7 percent of all wage and salary workers. Among those paid by the hour, 1.3 million earned exactly the prevailing federal minimum wage of $7.25 per hour. About 1.7 million had wages below the federal minimum. Together, these 3.0 million workers with wages at or below the federal minimum made up 3.9 percent of all hourly paid workers”(Ratio of Minimum Wage). The Federal minimum wage drives debate among people today, and with many wanting the federal government to raise the minimum wage to fifteen dollars, economists have studied and will continue to study the effects of a fifteen dollar minimum. This poses the question: What are the social and economic outcomes of raising the federal minimum wage to fifteen dollars an hour?

My goal in this paper is to influence your opinion on why an increase to the minimum wage is detrimental. This paper is organized into three main sections. The first section provides you with the history of the Fair Labor Standard Act, its amendments, and minimum wage increases. The second section will report on SNAP benefits and government spending. Third, I will specify how an increase in the minimum wage will stimulate economic growth. I end my paper with a summary of the facts that support my thesis. I also include two appendices; one of works cited and the other is my writer’s statement.

Subsequently, the debate endures with the question, should we increase the minimum wage? A question that is relevant and significant to the hourly workers making minimum wage in America. This commentary will assess the issues and determine what the outcomes might

The minimum wage is at eight dollars and seventy five cents for New York State. This is a fair rate because you don’t want people to live off this job the rest of their life. These minimum wage jobs are just that a job. A person needs to find a career. I can respect that people fall on hard times and a job flipping burgers is all they can find right now. But also these jobs are for the high schoolers and the college kids that just want to have some extra spending money. Minimum wage is the lowest payment an employer can pay the employee. I can understand why some people are for the higher minimum wage. But also why some people are against it. This is an argument that is an important decision that can change the way the economy functions.

A minimum wage is the lowest amount of money per hour that the government of the country assigns employers to pay their employees. The minimum wage is based on an idea that the employers have a responsibility for their employees to live in a reasonable standard of living. The minimum wage laws have directly effect to most industries because of the potential of decreasing their budget. As a result, the minimum wage is still an issue that people research and discuss about its impaction to our economy continuously. The minimum wage was used for the first time in New Zealand in 1896 under the Australian state of Victoria of legislation that create a wages boards system. Therefore, it was not until 1911, when it covered most states in Australia. European countries soon followed the minimum wage law, for example, France (1915), United Kingdom (1918) and Spain (1926). However, the law protected only a few industries until the end the World War II. The first minimum wage law in the United States was used in Massachusetts in 1912 for protecting females and young workers. After that, the minimum wage law has used in many states before the United States created a National Minimum Wage Board in 1928 to manage the general minimum wage law for the whole country. The minimum wage law in the United States increased in every few year. The minimum wage has become a hot issue in America again after President Obama tried to pass

As the economic situation around the world continues to deteriorate the questions that has been raised recently are: Should the United States increase the minimum wage? Will the increase make employees more effective? How would the increase affect goods and services? Raising the minimum wage will increase employee output but at the cost of also raising the price to live.

The minimum wage was introduced for the first time in the 1890s in Australia and New Zealand and since then it has been a crucial component of public policy. It entered British market in 1909 and approximately 30% of U.S. states in the following two decades. After America’s introduction of the federal minimum wage law in the Fair Labour Standards Act in 1938, minimum wages have spread to a large number of industrialised countries as well as to some developing countries. Consequently, by the 1990s, over one hundred countries from all over the world accepted the law about minimum wage and the International Labour Organization has accepted it as an international labour standard. The minimum wage was introduced in order to combat the

Minimum wage has been an issue that is highly debated and has created controversy. The debate is one of the most controversial issues in economic policy and labor economics. The set minimum wage will influence the labor market, labor force participation, and social welfare. A minimum wage is meant to improve labor market conditions and increases social welfare. The wage that both maximizes social welfare and worker’s social effort is seen as beneficial to workers even if it increases unemployment. When evaluating the United States labor market, the federal minimum wage has a large effect on jobs. Minimum wage attempts to support low-wage workers, consequently fighting inequality and poverty. Evidence suggests that a higher minimum wage causes adverse effects on employment. Research from both past and present evaluations of a minimum wage increase have demonstrated an adverse effect on the labor market and employment. Overall, an increase in the minimum wage is a problematic policy that does not support the task of handling poverty and inequality. Increasing minimum wage leads to an increase in unemployment among the youth and vulnerable workers and forces the workforce towards informal jobs leading to lower job security and lower earnings.

In 1912, the first place in America to announce a minimum wage was Massachusetts, but before it was set another twenty-five years would pass. June 25, 1938, President Roosevelt signed the minimum wage into law, it was part of The Fair Labor Standards Act of 1938. It started out at $0.25 per hour, which would be equal to $4.18 in today's economy. This rise in income affected about 20% on the labor force. The decree was revolutionary, not many countries had anything like it set in place. In 2012, 74.6 million workers over the age of sixteen were paid an hourly wage, according to the Bureau of Labor Statistics. 3.5 million people that were part of this group were paid minimum wage or lower. Studies from 2012 show that most earners of minimum wage are inclined to be young and a woman.