The Negative Effects Of The 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.

One of the biggest political topics in today's society is the federal minimum wage and whether it should be raised or kept at where it is now at $7.25 an hour. Arguments could be made for both sides on whether it should be raised or left alone. The majority of minimum wage in today’s job market are unskilled positions. Minimum wage jobs were created for teenagers and colleges kids as a way to get into the workforce and to have a little extra money for themselves. It was not designed to be a wage for people to live on. Increasing the minimum wage would hurt the economy by hurting small businesses, a huge loss of jobs and it would increase the competition between teens and adults. Overall if the federal minimum wage is increased it will have many negative effects on the economy.

Should the minimum wage increased to $10.10 an hour? This has increased over the years and everyone has their opinions. Those who are in favor of increasing minimum wage to $10.10 believe that more money will decrease poverty and the unemployment rate. Those who oppose the increase in the minimum wage, believe that it should not be increased and should stay the same, because it will cause businesses to close up because they are not making enough money to survive in the economy An increase in minimum wage would have to make the employees work harder to make increase sales of the business. I believe that the minimum wage should not increase to $10.10.

Should the minimum wage be raised? This question is the question being asked by millions across the United States. Most people will say yes, however, an economist will most likely say no. This is a very important subject and what the people of the United States should be compelled to notice as well as take action on the minimum wage. In the United States, 3 million people make less than the federal minimum wage. Furthermore, with over 60 million people living in the lower middle class the minimum wage is not high enough. That's why the minimum wage should be raised to $15 an hour because CEO's support it as well as it presents a living 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.

I worked a minimum wage job for 6 days and I did 8 hours shifts and only got 193 dollars. I personally think minimum wage workers don’t get paid enough for what they do. They deal with unpleasant costumers. They are constantly cussing at you. Some people has told me stories where they even got food thrown in their face because the grill workers made a simple

Should the government raise the federal minimum wage?  The federal minimum wage is currently $7.25 per hour, however many states have their own minimum wage laws.  For example, the minimum wage for California is currently $10.50 per hour and is subject to rise gradually to $15 over the next few years.  While many people believe that it should be substantially higher, others believe that increasing it would harm small businesses and the economy.  Now the question that remains is whether the federal minimum wage should be raised.  Even though job losses from raising the minimum wage are negligible, minimum wage should not be raised because a fixed minimum wage actually hurts the same low-rung workers it vows to protect and contributes to the

The topic on whether the minimum wage should be increased our untouched has been a hot topic in the media and political scene lately. Both the republicans and democrats have spent some big bucks lobbying their insights on the matter. There has been a lot of subjective and objective arguments that are reasonable on both the pros and cons of increasing our national minimum wage. To add to the drama associated with this topic, President Obama endorsed a bill proposing a nearly 40% rise from $7.25 to $10.10 per hour. The President has been campaigning around the country ever since his State of the Union address, pushing congress to raise the minimum wage to $10.10 an hour. Many say this is too high due to the costs of enacting such an increase, and many say this is a little low due to the increased cost of living. After looking into both sides of this debate, I realize that overall it would be better for the well-being of our nation to increase the minimum wage due to the short term and long term costs that an increase of the minimum wage could lead to. In terms of helping out the lower class and poor citizens of the United States, increasing the minimum wage level is not the answer.

There are 156. 4 million people in the US workforce, however 5.2% of those are unemployed. The federal minimum wage is $7.25 an hour; however, each state has its own laws regarding minimum wage and the amount can be higher or lower than the federal minimum, but the employee receives the higher of the two (2015). A higher minimum wage means that employers are less apt to hire someone. Some experts explain this by saying that if an employer values the job at a lower wage per hour than the minimum wage set by the government, then the employer is less likely to hire someone to fill that role. The employer only wants to hire someone when that person will be able to generate some sort of value for the company and positively affect the bottom line. Another problem with a high minimum wage is that potential employees are less likely to want to work if they are able to receive unemployment benefits from the government that will almost equal that which they would receive from working a minimum wage job (Gillikin).

Businesses will not just reduce the number of employees they will also seek to maximize their profit by reducing benefits. While most minimum wage jobs do not offer much in the way of benefits, many at least offer some form of incentive. In some cases it may be a free of reduced cost meal, others may offer at least some form of basic health plan or 401(k). The effect of raising the minimum wage is also disproportionate, affecting small businesses more than larger companies. This leads to a greater incentive for a small business to participate in the ""black market" for labor, by paying employees in cash in order to pay them less than

Minimum wage is just bad to the economic policy to even start. Its unfair, raises prices, and more. They should not consider to raise minimum wage.“The government has instituted a price control related to wages for labor. This price control is called the minimum wage.” Many citizens believe that by raising minimum wage it will help and improve how the world runs. Will it improve though? I believe that we should not raise minimum wage, not only would it be harmful, it would stop the process of full employment, economic growth and more. Is raising minimum wage really worth all he consequences. Take a look for yourself on the reason being why we shouldn’t raise minimum wage.

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).

An increase of minimum wage can cause the effect of not reducing the poverty. It will only cause more problems because if wages go up then that would mean that the less experienced employers may not even get a chance to get a job since all the companies would look for experienced workers that would take it since they will pay them the “big bucks.” Thus, it would mean they would more likely pay them the higher wages than the less experienced causing people to lose more jobs.

Minimum wage is the lowest legal amount of money that a person gets paid for each hour the work for. For many years, there has been many protests of people who want the minimum wage to rise, and think that by increasing the minimum wage it will give a lot more earnings for those who get paid a little bit. There are others who argue that if the minimum wage is raised, it will result in unemployment rate get bigger and lead to price increase.

Damage to the labour market: As seen in the above graph, with a minimum wage there will be an increase in labour supply and decrease in labour demand resulting in damage to the labour market as workers will not be able to find jobs. Resulting in non-price competition, such as personal connection, experience, age would replace price competition making it even tougher to find jobs.