The Effects Of Minimum Wage Increase On The Household And Industry

My topic of interest is the effects of raising minimum wage in the U.S. Minimum wage is defined as the lowest wage permitted by law or by special agreement. In 1938, President Roosevelt signed a bill called the Fair Labor Standards Act of 1938, which set the minimum wage at $0.25. Although, overtime inflation devalued the amount of the dollar so it was raised there on. After raising the minimum wage the cost of living would keep going up every year. Also, currently advocates are arguing that the living wage should be 125% above the poverty line so that full time workers can afford a living.

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.

In 2015, the Illinois minimum wage is $8.25 an hour (Schreiber and Young). There are people in Illinois who want to raise the minimum wage to $15. The current debate for the increase in minimum wage is that, by increasing the minimum wage, cost of living will be easier to pay for, poverty levels will decrease, and produce income equality. This notion sounds like a good idea initially; however, what will the repercussions of raising the minimum wage most likely look like? Increasing the minimum wage will probably have the opposite effect of what is intended by its supporters.

Research shows if minimum wage was to climb that it would hurt the least skilled and the least experienced people trying to seek a job the most. There are different of opinions people believe in about the positive and negative aspect of minimum wage. Supporters argue that such a boost will shrink poverty without plummeting jobs and that it will boost confidence, increase the normal living, and cut inequality and have businesses to be well-organized. Opponents that are not for minimum wage say it will increase poverty, unemployment and is not good toward businesses. The question about minimum wage and the effects it would cause if it was to rise, remains one of the most commonly studied topics.

House Bill 230, or the most recent bill introduced in North Carolina to increase minimum wage, was introduced by the House of Representatives on March 12, 2015. After the first version of the Bill was introduced, it was revised once. The bill was introduced because the goal of the state is to provide a minimum wage that allows for a decent and healthy life for its citizens. As the value of the American dollar continues to change, so does the average cost of living. The primary sponsors of the Bill were Representatives Farmer-Butterfield, L. Hall, Fisher, and Cunningham. The Bill states that “Employers shall pay employees wages no less than the minimum wage for all hours worked in North Carolina.” It then states that minimum wage in North

Raising minimum wage will have a big impact on individuals and business because in it will hurt more people will be without a job they won’t be able to provide for they family the way they need to like having a roof over they head and food on the table , shoes , and clothes tp were no one will have money because they will be out of a job if minimum wage go up from $9.25 to $10.10 cause they mean it will be less jobs out there .For businesses it will be a impact the reason they will have less works and they will have to make everything in they store a higher price because of the minimum wage and the infeltion , In document 6 it show a picture of a worker happy about getting paid $15 a hour

Many people in the state argue that raising the minimum wage would decrease the number of people who receive welfare benefits; however, there are many side effects of raising the minimum wage. Along with the wages being higher, there would also be a large increase in taxes, social security, workman’s compensation, as well as the unemployment compensation. Small businesses would suffer greatly from the wage increase. Small towns or cities would see a sharp increase in prices for food, housing, as well as for services. Raising minimum wage could also possibly create more unemployment to make up for lost

Even though Ms.Steele considers the down fall of raising minimum wage, Mr.Knight provides clear evidence that raising minimum wage would help the America's economy.A 2011 study showed that increasing minimum wage lead to higher consumer spending.Another study showed that in the first six months of 2014 states that increased minimum wage, increased in jobs also.Last but not least, in 2014 University of Massachusetts Ameherst found that increasing minimum wage would lift 4.5 million Americans out of poverty and 3.5 million from food stamps.

How would a minimum wage increase effect employment and family income, businesses, and the economy are just a few of the main arguments. Typically any increase in wage also increases income right? Raising the wage in the perception of small business is not usually a good move for the economy. Poverty is an important factor when it comes the economy and minimum wage could be the solution to that.

The federal minimum wage has been in effect since The Great Depression. Recently, it has become a hotly contested issue. Should it be raised or not? The issue is a complicated one because some believe that more harm will come than good and many believe this because majority of people are misinformed on the impact raising minimum wage can have on the American economy and families. According to Cato Institute’s article on Reasons Not to Raise the Minimum Wage, the important or more discussed problems that are argued by antagonist are job loss, higher prices for consumers, and the little effect on reducing poverty. Although these problems seem significant, protagonist will say the war against poverty and income

As published by Alison Doyle in “Pros and Cons of Raising the Minimum Wage”, “An increase in the minimum wage raises the standard of living for impoverished workers.” Furthermore, workers that make more than the minimum wage are also effected due in part to the ripple effect, which means that the rise of the minimum wage positively effects higher wage brackets. Katie Lobosco of CNN Money said in the article, Minimum wage hike could mean a raise for all, “As a result, the Economic Policy Institute estimates about 4.6 million workers will see their wages increased, 2.6 million of whom are directly affected as the new minimum wage exceeds their current hourly pay. The other 2 million already make slightly more than the new minimum wage but will benefit from the ripple effect. “ Employers will give valuable employees more money to stay competitive and retain those with valuable skills. people will not want to take job positions where they make almost the same amount as their subordinates. With everyone seeming getting more money the economy could flourish. Alison Doyle painted a great scenario in her article where “Additional income would be spent by consumers and would ripple through the economy if overall budgets for salary were increased under a gradual increase in the minimum wage scenario and Government expenses for social programs aimed at the poor would be reduced causing slightly lower taxes for other

Rise in minimum wage has several impacts apart from unemployment. The minimum-wage workers would have to pay more taxes and receive fewer benefits if they are subjected to rise of minimum wage. The federal marginal rate for tax is 32 percent on an average for low earning members. This would amount to almost one third of the income of a worker. The tax rate is quite high for low paid workers. The rise of minimum wage would also reduce some of the advantages and leverages that the low-wage workers enjoyed previously. In United States, the increase of minimum wage for workers would have some disadvantages including paying payroll taxes and payments for Social Security and Medicare (Clark 445). The economists have therefore stated that the minimum wage should be an amount that could meet the basic needs of a worker and it should not be increased unnecessarily without proper inspection because it could have negative impact in the life of the workers. The marginal tax of 32 percent does not include the benefits of Medicaid coverage services. However, the benefits of minimum-waged labors would definitely reduce as a result of slight increase in the minimum-wage.

Minimum wage is the topic I chose because there has been a controversy regarding raising minimum wage and the impact of minimum wage to the society. Whether it would aid workers or not. There have been arguments of laypersons of increasing minimum wage to a very high level and there are arguments against it.

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).

Raising the minimum wage to $10.10 is not the answer. The various amount of unintended consequences that would come about as a result is reason enough not to support an increase. Those who support an increase contend that it will alleviate poverty. Suppose a spike in the minimum wage does reduce poverty for some workers. This development will be offset since an increase in the minimum wage will further price out inexperienced workers from the job market, resulting in an increase in unemployment and thus, poverty. This can properly be described as a catch-22 situation; no matter happens, someone will lose. When you take these negative affects into account, is an increase in the minimum wage worth it? As expounded further, no it is not.