The Negative Effects Of The Minimum Wage Law

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.

House Bill 230, or the most recent bill introduced in North Carolina to increase minimum wage, was introduced by the House of Representatives on March 12, 2015. After the first version of the Bill was introduced, it was revised once. The bill was introduced because the goal of the state is to provide a minimum wage that allows for a decent and healthy life for its citizens. As the value of the American dollar continues to change, so does the average cost of living. The primary sponsors of the Bill were Representatives Farmer-Butterfield, L. Hall, Fisher, and Cunningham. The Bill states that “Employers shall pay employees wages no less than the minimum wage for all hours worked in North Carolina.” It then states that minimum wage in North

The current U.S. Federal Minimum Wage is $7.25 per hour. In just two years from 2013, the demanded from advocates for raising minimum wage rose from $9 to $15. However, raising the minimum wage is more complex than simply raising the number of federal standard of pay for employees. Relative control groups and other market activities play a part in the outcome of the minimum wage. For example, one instance of market activity was observers said that raising the minimum wage did not hurt individuals; however, wages were raised during an economic downturn so the impact of minimum wage was masked by other activities. Federal Minimum Wage is pressing topic and it is important to consider the pros and cons to raising it, to ask what people and how people are affected, and to look further into the microeconomic theoretical framework of wages surrounding the topic.

Supporters of an increase in minimum wage, the McDonalds employees that demand $15 per hour, argue that they need a “living pay”. Furthermore, they state that it will bring workers out of poverty and will have little negative effects. There is evidence to support this claim. One of them being that when the minimum wage increased from $6.25 to $7.25, there was no immediate negative effect.

Supporters of an increase in minimum wage, the McDonalds employees that demand $15 per hour, argue that they need a “living pay”. They state that it will bring workers out of poverty and will have little negative effects. There is evidence to support this claim. One of them being that when the minimum wage increased from $6.25 to $7.25, there was no immediate negative affect.

Proponents of raising the minimum wage claim that if the minimum wage was raised, then many economic and social problems would be alleviated. This contention is at odds both with economic principles and years of creditable research. The effect of raising or even having a minimum wage has been studied extensively and the majority of studies have proven that raising a minimum wage does not have the desired effect. Both micro and macroeconomic forces affect the results of raising the minimum wage. The secondary effects of raising the minimum wage are bad both for

Greetings everyone, the topic I have selected for this research paper is on the topic of having fifteen dollars for minimum wage and how it can be a detriment for the fast-food sector and for small businesses in general. The areas that I will be addressing in this piece of work is what is minimum wage, the history of minimum wage, the benefits and consequences of minimum wage, the history of the rise and fall of minimum wage and the factors, the consequences of having fifteen dollars for minimum wage or something closer to that range, and how having a minimum wage of fifteen dollars an hour can be a factor to increasing human health, such as helping relieve stress in times of need. Once my findings have been presented and discussed, we

In the United States alone there are around 3 million people who work in fast food restaurants. They get paid minimum wage. This year in the city of chicago the minimum wage went up to $10 and taxes went up from 9.25% to 10.25% making it one of the most expensive cities in the country. There was a debate rather they should of raised the minimum wage or not because they feared the taxes would increase as well. While the minimum wage is around $7-$10 across the country a new demand to raise the minimum wage to $15 is being talked about. Fast food workers across the country in major cities like New York and LA are protesting to get $15 an hour. Many are upset despite the fact that all they do is push buttons and flip burgers. Fast food employees do not deserve a $15 wage because there are other jobs that require more skills that don’t even get paid $12 an hour.

Minimum wage jobs are the fastest growing jobs in the US at around three million people and rising. A minimum wage worker will only make $15,080 annually which isn’t enough to even consistently pay for food. In response, McDonald's told their employees to go on food stamps instead of raising their pay. On Thanksgiving 2012, hundreds of fast food employees went on strike to protest their low pay, leading to the start of the Fight for 15. The Fight for 15 is a movement to help anyone who is frustrated with their pay, and is working to raise the minimum wage to $15 an hour by going on strike at fast food restaurants.

Another big topic of conflict perspective is raising the minimum wage to 15 dollars an hour in fast food restaurants. Many workers at McDonald’s feel they cannot survive off the state’s minimum wage, so they went more to make a living. Many owners at McDonald’s and other fast food restaurants are now combating the employees demands by installing touch-screen cashiers, like the ones at Wawa. Still employees feel suppressed by those establishments because as stated in this article McDonald's Announces Its Answer to $15 an Hour Minimum Wage with New Jersey minimum wage set at 8.38 an hour (8.38 x 8hrs x 5days =335.20 x 52weeks = 17430.40 a year before taxes) is not enough to survive off from. Still McDonald’s states and argues that, “Fast food

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).

Raising the minimum wage to $10.10 is not the answer. The various amount of unintended consequences that would come about as a result is reason enough not to support an increase. Those who support an increase contend that it will alleviate poverty. Suppose a spike in the minimum wage does reduce poverty for some workers. This development will be offset since an increase in the minimum wage will further price out inexperienced workers from the job market, resulting in an increase in unemployment and thus, poverty. This can properly be described as a catch-22 situation; no matter happens, someone will lose. When you take these negative affects into account, is an increase in the minimum wage worth it? As expounded further, no it is not.

Minimum wage has always been, and will probably always be, a controversial topic. Some believe raising the minimum wage is the solution to poverty, while others believe that raising the minimum wage is a recipe for “killing” jobs. This age old debate has come to the forefront recently as the “Fight for $15” by fast-food workers continues to grow. The campaign’s core argument is that the billion-dollar companies in the fast-food industry can afford to pay their employees better to ensure their employees make enough money to support their families and cover basic necessities such as food, health care, rent, and transportation. McDonald’s is one of the billion-dollar companies that the campaign is targeting and fighting against and, therefore, McDonalds has taken significant heat lately about their decisions to keep their wages low. Thus, the debate is, should McDonald’s raise their minimum wage to at least 15 dollars for all employees?

The article that we are critiquing is aimed to assess the blow of increased minimum wage from $4.25 to $5.05 per hour in 1992 on the employees working in fast-food restaurants in New Jersey and Pennsylvania. The author has shown two comparisons in this study. The first comparison is the employment growth rates at the fast food stores in New Jersey and Pennsylvania, before and after the minimum wage raise. The second comparison is the change in employment rate from fast food stores (in both states) that pay higher wages initially to the lower wage stores. Krueger Card concluded that there was no indication or signs that the minimum wage increase, decreased employment