The Effects Of Raising Minimum Wage On The United States

2322 WordsMar 2, 201510 Pages
The Effects of Raising Minimum Wage 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. I conducted research through peer reviewed articles to find the answers to questions and get a better understanding of why minimum wage should or should not be raised. The argument for minimum wage has been going on for a while, since about the 1930’s. I have learned a great deal from my research such as what kind of effect of raising minimum wage would have the working poor, prices, and to employment rates in the U.S. To begin, there is an extensive debate over whether if the U.S were to raise minimum wage, could it really help the working poor of low income families. Nancy Cook, in her article from the National Journal, “Why a Minimum-Wage Hike Can’t Help the Poor”, she points out that two thirds of around 100 surveys from 2007 had a negative effect and that it does more for the middle class than the lower one. (p.14). So, therefore, from her

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