The Minimum Wage Change

There has been much controversy over the years on the impacts resulting from an imposed minimum wage and how it relates to the economy. It wasn’t until President Franklin D. Roosevelt signed a Bill enacting the Fair Labor Standards Act of 1938 that American’s gained the right to a minimum threshold by which their labor could be sold. Against much opposition President Roosevelt was for a law that banned oppressive child labor and set the minimum hourly wage at .25 cents, and the maximum workweek at 44 hours.1 The minimum wage has been around for many years and it wasn’t until recently that it has become the topic of many discussions again. The intent of this paper is to look at some of the economic impacts associated with an increase to the minimum wage. There continues to be a difference in opinion among many economists on the pros and cons of a minimum wage hike. Those in favor attribute quality of life, reduction in poverty and gained efficiencies; while those that oppose claim an increase to poverty, unemployment and reduced efficiencies across the board. Which path warrants the most merit and should be considered a viable option across the board for the United States labor force?

The minimum wage debate has been a hot topic over the past year, especially with the Presidential Election. This is a divisive topic that people rarely agree upon. There are essentially two sides you can take when it comes to this argument. Either people are for minimum wage or are against raising, or even having, a minimum wage. Proponents of the minimum wage are typically politicians who are lobbying for the vote of the people who feel that a minimum wage is critical to their wellbeing, and those who sympathize with people who earn “minimum wage”. Minimum wage is destroying America’s free market economy and someone needs to take action and find a better solution to this problem. Without anyone acting on this problem now, it can potentially be worse in the long run. Raising the minimum wage in the United States will do more harm than good to society because of the long-term effects.

Before discussing the potential implications of raising the federal minimum wage, it is important to understand why such action is necessary. By historical standards, the current federal minimum wage of $7.25 is fairly low (Weissmann 1). Adjusted for inflation, the minimum wage today is over three dollars less than when its real value peaked in 1968 (ibid). Although many state and local governments have passed laws setting the minimum wage above that of the federal level, the majority of states have not, despite rising levels of GDP, productivity and cost of living. Since 1968, the average American, at all levels of income and in almost all occupations, has worked 163 more hours per year, the equivalent of a month (Schor 26). Additionally, worker productivity has doubled since that time, as indicated by Real GDP per hour worked in the United States (“Real GDP”). So although the average worker is twice as productive now as he was in 1968, his real wage earned is

Americans are worried about how the minimum wage will be change to best fit everyone’s needs. There are 45 million families living in poverty that can’t get out no matter how hard they try. The economy will undoubtedly be affected if the minimum wage will be changed raising of the minimum wage will reduce the amount of some jobs. Over the years inflation has caused controversy on how the minimum has not gone up with it. Additional actions will be needed to take people out of poverty then just raising the minimum wage. In order for there to be a smooth transition there needs to be more done before just raising the minimum wage. One looking through the economic lens can see that this a huge topic and very contraversonal.

An issue that has been debating throughout centuries is whether or not America should increase the minimum wage. This is an issue that has been arising to be relevant to people all over the nation. Researches have provided logical facts and statistics on how increasing the minimum wage would be the solution to America’s debt. Increasing the minimum wage has also been successful in several countries including Germany. Studies have shown that decreasing the minimum wage is unlikely to solve any economic woes. While when we increase the minimum wage it benefits the economy, employment as well as skillful people.

In recent years, the discussion of whether or not to raise the minimum wage has once again surfaced as a popular topic of deliberation among U.S. policymakers. Serious thought is being given to the suggestion of increasing the federal minimum wage “by more than thirty-nine percent [from the current rate of $7.25 per hour to a proposed $10.10 per hour] and mandating automatic increases every year by the rate of inflation” (Alexander, 2013). This new proposition is receiving its share of both support and criticism. Maybe the important question we should be asking, however, is if this new increase is approved, will this time differ from previous attempts and actually benefit those whom it is intended to help?

In today's society money makes the world go round. People need to pay bills, take care of their kids, get transportation, and to even eat. All of those things are costly. Unlike water coming out of a faucet, money isn't always coming our way when we need it. It comes sprinting out of our pockets faster than it goes in. The federal minimum wage is only paying $7.25 an hour. At pay like this, life isn't even survivable. What can we do to end this struggle? We can move minimum wage to $15 an hour. There are people against it. They say jobs and the chance of advancement will plummet, however predictions show otherwise. Raising the minimum wage can boost the economy, help struggling families make

With President Franklin Roosevelt’s cries for “A fair day’s pay for a fair day’s work,” the Fair Labor Standards Act established minimum wage in 1938 (Grossman). Overtime, the minimum wage has been raised in order to account for inflation (BLS 14). However, what the overall economic impact of raising the wage will be is once again a daunting and extensive question. The controversy over raising the minimum wage seems to come from often conflicting economic opinions. While raising the minimum wage is done with good intentions, critics argue that a higher minimum wage will harm those it is actually trying to help. Raising the minimum wage, while a controversial issue, will have an overall economic impact that reaches not only minimum wage

According to Michelle Chen the increase in minimum wage to fifteen dollars would be beneficial allowing families to be able to purchase more food therefore allowing parents and their children to eat more. While Ed Rensi believes that the increase in minimum wage would cause businesses like McDonald's, whom he used to work for, to invest in self-service computer kiosk in replacement of part-time employees causing many people to be laid off. Since Chen’s idea of a $15 wage has not happened yet, her article is not a trustworthy source.

Millions of Americans live in poverty, unable to find high paying jobs to support themselves and their families. Common belief persists that paying a higher minimum wage would aid in lifting people out of poverty by giving those with low paying jobs a higher income, however the evidence suggests otherwise. As the 2016 race for the White House heats up, the minimum wage battle stands at the forefront of every economic discussion. The rhetoric between candidates within and across party lines intensifies by the day. While the debate over whether or not to raise the federal minimum wage from $7.25/hour to $15/hour rages on, one side continues to stand out from the other.

Although it is not a new topic in America, the decision to raise the minimum wage continues to be controversial, especially in the political realm. The political parties still move to block the opposing party from successfully implanting their ideals, causing either nothing to be accomplished or the situation to worsen. Research shows that raising the minimum wage a reasonable amount would lessen the gap between the rich and the poor, continue to fulfill its original purpose of protecting workers and keeping the economy in a healthy state, and contain more advantages with a minute influence on employment rates.

The debate on increasing or eliminating minimum wages is of serious concern for the developing and developed economies. Minimum wage is the amount of lowest wage, set by the federal state to allow employers to pay minimum wage per hour to the employees (Bloobergview.org, 2014). Here, the area of concern is whether there should be minimum wage or not in the country. Well, I strongly oppose the idea of having a minimum wage in the economy. The increase in minimum wage will increase the cost of the job market, as companies have to pay enormous amounts even in the hiring of unskilled staff (Gorman, 2014). As economists raised their concern on the announcement of president Obama when he decided to increase the wage rate up to 10 dollars an hour, which will help to strengthen the economy. But it

Raising minimum wage has in the recent years become a very controversial and personal issue, and although it is slowly becoming a more popular idea, some people still resist the movement. What people who oppose the adjustment of minimum wage are not considering, is that by raising minimum wage, it will allow low income families or otherwise low income individuals to earn more, in turn, allowing them to spend more money on goods and services. It will also help the same people who rely on government aid such as food stamps and Medicaid to become more self-reliant, and moreover, it will allow people who are in the working poverty to begin moving into the lower reaches of the middle class.

The issue of whether to raise the minimum wages across the United States has for years divided economists, politicians and academicians alike. The first national minimum wage laws in the US were established with the passing of the 1938 Fair Labor Standards Act during the Great Depression at the rate of $0.25 per hour. Currently, the federal minimum wage stands at $7.25 per hour while many states and localities such as the city of Seattle have raised minimum wages significantly above the national rate (Hoffman, 2014). However, for working people today, pay for work has declined in value when adjusted for inflation from what it was at the beginning – pay rates have fallen along with fewer quality

Sunday, July 24, 2016, marks seven years since the last time the federal minimum wage was raised (U.S. Department of Labor). Since raised, the cost of living has increased by nearly 12 percent. When President Obama called for an increase in 2013 19 states, have raised their minimum wage between $8.15 and $11.00. But is the hike beneficial to everyone? According to conventional economic analysis, increasing the minimum wage reduces employment in two ways. First, higher wages increase the cost to employers of producing goods and services. Second, a minimum wage increase raises the cost of low-wage workers about other inputs that employers use to produce goods and services, such as machines, technology, and more productive higher-wage workers