Across the United States, economists have debated the fruits of the minimum wage. Franklin D. Roosevelt introduced The Federal Minimum Wage Act in 1938, was the first federal minimum wage set in the United States. In the United States, the minimum wage has increased from its original twenty-five cents to its current seven dollars and twenty-five cents. Donald Trump and Bernie Sanders have taken divisive stances on the federal minimum wage. For example, Trump wants the states to set their own minimum wage while Sanders calls for a living wage. This difference in opinion between two relevant politicians is a clear indicator of the importance of the current federal minimum wage to the American people. Is the federal minimum wage effective in lifting Americans out of poverty? No, by itself the minimum wage is unable to make huge steps to get Americans out of poverty.
Why America Has a Federal Minimum Wage Before we can answer the question “Why can’t the minimum wage get Americans out of poverty?” we have to examine why the federal minimum wage was put into place. Congress is the branch of government which determines the federal minimum wage. Initially, the federal minimum wage was to create a ‘living wage’ and was part of the Fair Labor Standards Act (FLSA). A ‘living wage’ is vague, but the overall definition that authors can agree on is that a family must be able to afford to support themselves at the poverty line (Schmitt, Croes). The FLSA focused on establishing the bar
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
The first federal minimum wage mandated by the government was in 1938. When the first minimum wage became law in 1938, it was set at just 25 cents. Today, the federal minimum wage mandated by the government is set at $7.25 an hour. “Many states have their own set minimum wages, which are currently above $7.25 per hour already. Currently, 29 states and the District of Columbia (D.C.) have minimum wages above the federal minimum wage of $7.25 per hour. D.C. 's new wage of $10.50 an hour makes it the first jurisdiction to cross the $10 threshold among the states,” (Halvorson). The last time that the federal minimum wage mandated by the government was changed was over 8 years ago. “The last time Congress voted to raise the minimum wage to its current rate of $7.25 an hour was on May 24, 2007. Since then, the cost of life 's essentials has shot up. Groceries cost 20% more, a gallon of gas costs 25% more, and average tuition at a community college increased 44%. But the minimum wage remains at
In 1938 congress instituted minimum wage with 25 cents an hour being the first wage. After 78 years seven dollars has been the increase of minimum wage, stated by the article listed on, Heritage.org . Every year the cost of living and surviving in this country increases. You would think after 78 years, minimum wage would not be at $7.25. Many college students work part-time jobs that pays minimum wage to have some extra cash in their pockets or pay a few minor bills. Having a part time job is perfectly fine in college, but imagine not being in college, working a minimum wage job. Lets be honest, the pay checks are no where near what you would like them to be or it isn 't enough to cover everything that you want or need. So, imagine not being in college, working a full time job, with rent, children, car note, insurance, and etc. Many adults work minimum wage jobs, barely making it to provide for themselves and their kids. Your probably thinking, "maybe those people should go back to school or look for a better job.” Yes, that is true but for most people, its too late. A better job requires a degree, most people have kids and cant afford to take a couple of hours off or get someone to watch their kids while they attend school, so a minimum wage job is the only option. So, to make a better life for the struggling parents and the needy college students, increasing the minimum wage is a must for various reasons which include decreasing poverty, increasing health, and relieving
Although America is known as the richest country in the world, 43 million of its citizens are in poverty. Unfortunately, some of them work full time, yet are still in poverty due to the low minimum wage (“Should We Raise”). In 1928, the first federal minimum wage of 25 cents per hour was set by President Franklin D. Roosevelt to prevent workers from being underpaid. Since 2009, the federal minimum wage has been $7.25 (Smith). The age old debate of whether or not to raise it is still going on in the US. The federal minimum wage should be increased to keep up with inflation, help support the poor, and stimulate the economy.
Franklin Roosevelt introduced minimum wage as a part of Fair Labor Standards Act of 1938. The purpose of minimum wage were to prevent poverty and to stimulate the economy by increasing consumer’s purchasing power. However, in 2015, 78.2 million workers were paid hourly, representing 58.5% of all workers in the United States. Among those people, 870,000 workers earned the minimum wage, $7.25 per hour and 1.7 million workers earned below the minimum. In total, 3.3% of workers earned exactly or below the minimum wage. For years, there have been heated debates about whether the government should raise the minimum wage. In 2016, California, New York, and Washington D.C. agreed to increase the minimum wage to $15 per hour. Some people think raising the minimum wage will decrease poverty and improve the workers living. Instead, raising the minimum wage will make the job market more competitive and it will increase the poverty level. When minimum wage was raised to $10 per hour, it benefited 16 to 24 million people while half a million workers lost their job. Rather than improving, Faces of $15 will damage the U.S economy and deeply hurt living condition of Americans.
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)
The minimum wage debate brings about a range of reactions from different people. There are those who believe that there shouldn’t even be a minimum wage and that wages should be determined by the markets. On the other hand, we have those who vigorously argue for increasing the wage minimum citing inflation, the poverty line and worker productivity. Regardless, we do have a federal minimum wage rate in the United States at $7.25 per hour, with some states having a higher minimum wage than the federal minimum. President Obama, in his first state of the union address of his second term proposed “Tonight, let’s declare that, in the wealthiest nation on Earth, no one who works full-time should have to live in poverty, and raise the federal minimum wage to $9 an hour” (The White House 2013). A year later, he has revised that number to $10.10 per hour after signing an executive order that has already raised the minimum wage for federal workers to that number. (The White House 2014). With more and more states raising their own minimum wage, a minimum wage increase seems almost imminent with Democrats and Republicans getting closer to a deal. (Bolton 2014). But we are more interested in the efficiency of a minimum wage implemented at the federal level. The main question that surrounds this debate is whether this price floor in labor markets is efficient given that the stated goal of the minimum wage is to make sure full-time workers earn a living wage and are above the poverty line.
The topic of increasing in the federal minimum wage has been hotly debated in Congress and between politicians and activists since the most recent increase to $7.25 in 2009. The Fair Minimum Wage Act of 2013 proposed a $10.10 federal minimum wage increase but failed in Congress, while a more recent proposition, the 2016 Raise The Wage Act, hopes to put wages at $12 per hour by the year 2020 (14). Propositions like these seek to allow lower-income working families to earn a living wage but they have faced resistance by conservatives. Stagnation of wages has caused various cities and states to spearhead minimum wage increases at a local level, with twenty-nine states now having wages higher than the federal minimum (13). Raising the federal minimum wage to $12 an hour would correct for years of deteriorating wage values and would pull hard-working families out of poverty while lessoning income inequality and boosting the economy from the bottom up with minimal costs to businesses.
The federal minimum wage law was signed in 1938 by President Franklin Roosevelt in order to keep people out of poverty and increase consumer purchasing power. This has done the opposite by hurting businesses and reducing employment, while minimum wages go up, so will the costs of living. Most of the people working for minimum wage are 16 between 24 years old, 37% of workers are going to school working part time. Enrollment tuition has increased over the years, and raising the minimum wage could mean further increasing expenses. But, for people who aren 't pursuing an education and begin working right out of school, the federal minimum wage $7.25 looks like it can be hard to live on. Raising the minimum wage would most likely increase with the cost of living, making cost of living or tuition even more expensive, making it harder to pay for groceries or bills. Just because someone starts out at a minimum wage job, doesn 't mean they can 't progress through the company and earn a better wage over the years. Minimum wages are more for entry level paying jobs that don 't require any certain set of skills to be able to do what they ask. Maintaining the current federal minimum wage of $7.25 will help stop rise of inflation.
People all across America believe that minimum wage is a good thing and helps people without an education have a normal life, however others believe it is causing poverty and homelessness among the citizens. Minimum wage was made to provide enough money to live just above the national poverty line.But over the years the cost of living has increased while the minimum wage hasn’t. Today, the national minimum wage is $7.25, which is less powerful than the minimum wage was in 1968. This is because the minimum wage was $1.60 per hour, which seems low but back then $1.60 was enough to support a three person family, whereas today the minimum wage can barely support one person. All throughout the U.S., workers have been fighting for a higher minimum
The minimum wage in the United States has been an ongoing controversy for many years now. The first minimum wage was established in 1938 (Reich, 2015, P. 3). That minimum wage started out at .25 cents an hour; compared to today’s higher wage of a government standard of $7.25 an hour. Many people believe that the minimum wage should be more so that those who live below the poverty level in the United States will decrease, however in many other people’s opinions the minimum wage should be the same. The minimum wage should stay the same at a low $7.25.
Did you know that the Federal minimum wage for employees has been $7.25 since June of 2009? In modern society, poverty and inflation are common substantial problems. Many people think increasing the minimum wage will corrupt businesses and employers by forcing them to make cost cuts and increasing inflation, while others think it will reduce poverty and inflation by increasing individuals income. For instance, according to the Los Angeles Times, Lissette Rowe, a 30 year old psychology student from Georgia, earns $7.25 an hour, making subs for a sandwich chain, but she still relies on her family to help pay her bills, provide food stamps, and money for her basic housing needs. By increasing the federal minimum wage it can help Americans afford basic needs without having to struggle through life.
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).
There have been many questions raised about increasing the minimum wage in the United States but not many people have the knowledge to understand how their lives will be affected. People are more concerned about increasing the minimum wage into living wage. Everyone should be educated and have concerns about the politics of raising minimum wage to a living wage.
Congress enacted the federal minimum wage in 1938, during the Great Depression. Congress had two goals; keeping workers away from poverty and boosting consumer spending for economic recovery. Today, there is a debate, whether we should increase the minimum wage again. Increasing the minimum wage is useful for several reasons. First, the current minimum wage has failed to keep up with inflation. Second, a higher income level reduces employee turnover and increases efficiency and ultimately, raising the minimum wage does not reduce employment. Even with high unemployment rates, the minimum wage is useful for the economy.