The federal government issued the fair labor standards act. This act made it so all employers were required by law to pay their workers a minimum pay of $0.25 at that time. Minimum wage was also made to help the people as stated in the article, “Purpose of minimum wage”.Written by the labor law center, the minimum wage payment would be enough for an employe to afford basic needs of living. It was said that minimum not only prevents poverty but overcomes it. Each state has their own minimum wage but it can’t be lower than the national minimum wage of $7.25. States have their own minimum wage because not all states have the same cost of living. So minimum wage was created in 1938 as a way to overcome poverty, provide enough money for basic needs and be a fair amount of pay for employees throughout
"If we took away the minimum wage, we could wipe out unemployment completely because we would be able to offer jobs at every possible skill level." -- Michele Bachmann Proponents of raising the minimum wage claim that if the minimum wage was raised, then many economic
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.
Sammer hassan Mr. S English 9 6/5/16 “The minimum wage is the minimum hourly wage an employer can pay an employee for work. Currently, the federal minimum wage is $7.25 an hour (part of the Fair Labor Standards Act) and some states and cities have raised their minimum wage even higher than that.” minimum wage was first introduced during the great depression in 1930s. Before it was introduced thousands of people were forced to work in horrible conditions for pennies a week. Early attempts on minimum wage was ruled unconstitutional by the U.S supreme court, because it restricted people from deciding what they wanted to pay their workers. So employers still made there workers, work in horrible condition through the great depression. Now that poverty is a huge national issue. President Franklin D. Roosevelt made sure he would protect workers it was part of his mission as the president of the united states of america. After being reelected in 1936 he signed the FLSA in 1938. Which put into place a national minimum wage of 25 cents an hour. After the law was passed the minimum wage was changed almost every couple of years because the cost of living is very high. In 1997 bill clinton allowed states to make there own minimum wage. Today the minimum wage is 7.25/hour there is continuing debate over whether that 's a fair amount of money to support someone there days. Labor activists want the government to raise it while other point out the negative effects it would have on the
Debate of Raising Minimum Wage Raising minimum wage has been an ongoing issue for many years. Similar to every debatable issue, pros and cons are inevitable. In the United States, minimum wage started when the Fair Labor Standards Act of 1938 (FLSA) was passed and minimum wage started at 25 cents per hour. The purpose of setting a minimum wage is to set a maximum workweek and to eliminate child labor. It is defined to be the least amount of money employers are obligated to pay their employees by law. As the years passed, the minimum wage began to increase to accommodate the growing economy. Although the wage has increased from a mere 25 cents per hour to $7.25 over the course of 75 years, living expenses are much higher causing many people to be poverty stricken (Debate.org). President Obama proposes raising the minimum wage, so that it would help minimize the income gap in America. However, most business organizations and the Republicans oppose to the idea, saying that it could potentially lead to more economic problems. While both sides have valid points, which one provides a more compelling argument? In the United States, the minimum wage should be raised in every state; therefore workers can have a more comfortable standard of living, lower the poverty line, and minimize the income gap.
Introduction 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)
Andrew Carnegie once said “Do your duty and a little more and the future will take care of itself.” Carnegie: for better or worse, played an important part in the worker’s rights movement. Some of the very first movements for workers to unionize and protect their jobs came during Carnegie’s time and would mark the very beginning of long and difficult process to achieve worker’s rights that still continue to this day. The minimum wage debate is without a doubt part of these negotiations and has taken the spotlight in recent years. There are two sides to the minimum wage debate: the employees fighting for higher wages who would like to earn enough to keep food on the table for their family, and the employer who is doing what they can to keep
Minimum Wage History and How It Affects Jobs 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.
What is minimum wage? It is the lowest amount that employers must pay their workers per hour of their labor, legally prescribed by federal government. According to Bureau of Labor Statics, United States Department of Labor, minimum wage was first introduced in United States by President Franklin Delano Roosevelt in 1938 called Fair Labor Standard Act (FLSA). The initial minimum wage was set to $0.25 per hour in 1938 (Grossman). The minimum wage was increased twenty-two times from 1938 to 2009. At present, the federal minimum wage has not changed since 2009, and is fixed at $ 7.25 (U.S Department of Labor). The raise of minimum wage becomes a controversial topic among citizen, some people are in favor of raising the minimum wage, while
Minimum wage affects many people and by understanding its evolvement throughout the years we can better understand how our government can better provide for those working minimum wage jobs today. Inequality is an inevitable factor in a capitalist market, people need proper incentives to work hard and be productive, and the incentive of more money or more opportunity is the driving force of capitalism and even the American dream. However there are several current complications that even those who are actively employed are living under the poverty line, like stated previously minimum wage from when it was first implemented raised along with inflation but then began to lose momentum in the 1970s and since then it began to stagnate and then drop along with increased inflation; if minimum wage were to be raise to $10.10 to become congruent with inflation it would bring 4 million people above the poverty line. Congress instituted the minimum wage in 1938 as part of the Fair Labor Standards Act (FLSA). The first minimum wage stood at 25 cents an hour. The last minimum wage increase occurred in 2007, when Congress raised the rate in steps from $5.15 an hour that year to $7.25 an hour in July 2009. The District of Columbia and 19 states have also established local minimum wages higher than the federal rate. The highest state minimum wage in the country occurs in Washington State at $9.32 an hour, however
It was introduced by the 32nd POTUS Franklin Roosevelt, and was referred to as the Fair Labor Standards Act (Sessions). The first minimum wage set in the country paid workers 25 cents an hour. As noted on the website Bebusinessed.com, minimum wage is deliberately set up so it does not rise with inflation. It can only rise if congress believes it should. In other words, lawmakers from the house and senate who make an average of $174,000 annually decide whether or not the wages should increase. Looking at how the minimum wage has increased over the years; in 1968 the base rate at its highest level was at $1.60/ hour which is equivalent to $10.75 today. From 1990 to 2009 the minimum wage has declined sharply since its highest point. In understanding how minimum wage works, it is important to understand who it is intended to help. 64% of minimum wage workers are part-time while 36% are full-time workers (Tufts). It remains a matter of pure debate on if a higher minimum wage causes unemployment. The benefit would have a greater impact on low-income Americans than the risk it poses. "If the US economy were 9% bigger than it is today, it would have created about 11 million additional jobs. Imagine how great that would be for both American workers and
The minimum wage is the least amount a worker can be paid at a job, by federal law. The present minimum wage is set at seven dollars and 25 cents. The wage can be determined by votes of the public or the average living cost.
The minimum wages are supposed to ensure the hourly wage workers are able to earn enough money to support themselves with the cost of living. Over the years, the cost of living keeps increasing every year due to the inflation and yet the minimum wages have not been changed since
Origin 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
Currently, the federal minimum wage sits at $7.25 per hour. (Alison Doyle). The debate is whether or not the minimum wage should be increased to $15 per hour. Larger states, such as California and New York, are preparing to raise their minimum wage to $15 per hour in the coming years. (Kate Rogers). Due to the size and population of states such as these, a minimum wage increase could actually be beneficial in increasing revenue and the standard of living for many employees. The majority of the United States is not as fortunate and vastly populated as states such as these. Therefore, an increase in the minimum wage could result in layoffs and reduced hiring. (Doyle). Overall, the minimum wage should not be increased to $15 per hour.