The Pros And Cons Of Minimum Wage

The issue of the minimum wage has recently come to the forefront of the debate on social policy. There is much disagreement over the wisdom of an increase in the minimum wage in the current fragile economic recovery. Some argue that a dramatic increase is what is needed in order to lift the standard of living for those in the bottom of the economic pyramid. Economists reason that the basic principle of supply and demand mandates than an increase in the wage would result in the loss of available jobs. Small businesses maintain that it would spell their doom.

Raising minimum wages is a contestable issue because it is debated in wide and varied audiences. Minimum wage is near the top of economists’ interest; they are looking for the connection between low wages and poor job markets. Each country sets its own laws and regulations regarding wages. For this reason, it has significant importance to policy makers and workers in each of those respective countries. Social activists have also found interest in the topic due to the fact that those who earn a minimum wage tend to come from poor minority families. Furthermore, the average American should have the strongest interest in the conversation because most citizens have been paid a minimum wage at some point in their life. Due to this fact, the idea of a significant federal minimum wage increase in America is open for debate specifically to rejuvenate the job industry, improve living conditions for citizens, and strengthen the economy as a whole.

The idea to raise the US FMW has been gaining traction in recent years. While some states and cities taken it upon themselves to enact legislation to raise minimum wage in their jurisdictions, to raise it across the entire country is a different debate. In this paper I will provide history pertaining to when and why minimum wage came to be in the US. ...

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).

The minimum wage was set in a federal mandate back in the 1938, by President Franklin D. Roosevelt, to have a minimum hourly wage set across the United States. The bill is known as the Fair Labor Standards Act (FLSA). It was founded to boost the low-income families and provide some money to the full time workers. In its original form, the bill first covered about 38 percent of the workers in America such as covering the workers in the mining field and transportation industry. As we became more technologically advanced it starting covering the airplane industry by 1947 and construction sites by the early sixties. In America today, the FLSA has covered close to 85 percent of the American workforce (Wilson, September 2012). The FLSA

The idea of minimum wage is that workers are guaranteed enough money to live off of. The price of minimum wage is determined by the state, but a federal minimum wage is set. Some states choose to go above the minimum wage, while others, such as Alabama and Louisiana, choose to not have minimum wage at all (Root). Minimum wage is important to society, because it can affect many people’s lives. There are many pros and cons to having minimum wage in the United States. Furthermore, various stakeholders are also impacted by this policy in numerous of ways. Minimum wage is a microeconomics and macroeconomic problem that has many consequences. Therefore, minimum wage has been a great economic issue because of people’s support and opposition to the policy.

Minimum wage is the minimum hourly wage an employer can pay an employee for work. Minimum wage helps people pay for things they use or need every day like food, clothes, and their homes. In some cases and for certain people the the federal minimum wage is not high enough for them to live on. In this paper I will argue that minimum wage should be increased to benefit people in a variety of ways, both socially and economically. Increasing minimum wage will also help cut down on government spending and pull people out of poverty.

In 1938, The United States enacted a minimum wage law under the Fair Labor Standards Act that made employers pay their workers at least twenty-five cents. The law was intended to reduce the amount of Americans living in poverty and keep track of unjust business practices. Still to this day, we Americans argue over the controversy due to low minimum wage and high inflation rates. The deregulation of business and the inconsistent government policies have led to an alarming problem, the minimum wage isn’t enough for Americans to live off of nor is it doing its original purpose by getting citizens out of poverty.

Initially the minimum wage law was introduced to reduce poverty and inequality. Proponents of the Minimum wage do believe that these laws attain to these objectives. They do guarantee that the workers at the bottom level of the pay scale are being treated right and don’t get underpaid as the result of the belonging to a particular race or sex. They also guarantee that the workers are receiving a reasonable compensation from the employer (Cho, n.d.). The proponents of minimum wage also believe that it may have a positive reflection on the work ethics of the low-pay workers, thus it may benefit employers. It is also might encourage more people to join the workforce instead of trying to gain earnings by the means of unlawful methods, such as prostitution, selling narcotics

One of the most talked about subjects in the U.S economy is the topic of minimum wage. What is it? Why people talk so much about it? Why should you care about that topic or even pay attention to that? This paper will try to answer the question of why increasing a minimum wage is a good or not so good idea.

The federal minimum wage was officially established in 1933 as a law. However, in the article Fair Labor Standards Act of 1938: Maximum Struggle for a Minimum Wage, Jonathan Grossman stated that it actually was struck down after two years by a Supreme Court case and was not reestablished until 1938. Grossman explained how the formation of this law had to endure many so called “Supreme Court disasters”. The Supreme Court at the time voted against many cases regarding state level minimum wage laws and declared them unconstitutional. Grossman put in his article that several of these decisions were among the most unpopular ever rendered by the Supreme Court. Only three years later though, thanks

Should the federal government raise the minimum wage to reduce poverty, ensure proper pay, and protect younger generations and minorities? That is a common question discussed in recent years. In 1938 during the Great Depression, President Franklin Roosevelt signed a law creating a federal minimum wage. The federal minimum wage is important to Americans and the government because it keeps workers out of poverty and helps increase consumer purchasing power which in turn stimulates the economy. The current federal minimum wage is $7.25 per hour, although certain states have higher minimum wages. (Raise the Minimum Wage)

Although the issue ran out of steam momentarily, the Great Depression soon amped up the debate once again. Then President, Franklin D. Roosevelt, formed the New deal which was a series of initiatives that would help boost the economy. After being denied several times by a conservative Supreme Court, President Roosevelt sought to increase the amount of justices from nine to fifteen. The reasoning being he felt he would be able to appoint more justices that would agree to his New Deal. The plan failed almost instantaneously. In 1937 when Justice Owen Roberts switched his vote last minute to uphold a minimum wage law in the state of Washington, that the courts finally jumped on the platform for the New Deal and minimum wage. In 1938 Federal minimum wage was set at 25 cents an hour when President Roosevelt signed into effect the Fair Labor Standards Act (FLSA). The Fair Labor Standards Act set forth guidelines limiting the work week to forty-four hours, uncompromising regulations on child labor, and set overtime for employees who work over eight hours a day. There were however exemptions for tipped workers and farm employees.

Looking back over the last century, minimum wage has been a divisive subject among policy makers and economists in the United States. As far back as 1938 when the Fair Labor Standards Act (FLSA) was first introduced, minimum wage has been a contentious issue. After much judicial opposition, President Franklin D. Roosevelt signed into law a bill which was a landmark in the nation’s social and economic development. The bill banned oppressive child labor, set the minimum wage to twenty five cents, and set the maximum allotted time to work at forty four hours per week (Grossman). The fight regarding minimum wage continues today, and one of the most frequently asked questions in our country, when it comes to

If per say the minimum wage was increased to the desired amount that workers are aiming for, is not only unrealistic, but impractical too, then the major decreases if minimum wage increases will be that of productivity and efficiency. A study found by George Mason University says, “Workers who are more productive command higher wages because employers compete for these valuable workers by offering them higher wages; higher productivity causes a higher wage. Raising the minimum wage makes workers more expensive. It does not necessarily make workers more productive.”(Davis). This quote from Antony Davis explains what can be expected from workers who now think they are worth a larger amount of money for working the exact same as before. This reasoning can make people a bit arrogant in a sense that they will potentially work even less or their work time will be used not efficiently. The efficiency lost in increasing minimum wage is due to the lack of a drive to work hard, for example: “Why do I need to go above and beyond for work for a raise when I already make more than enough for my daily life.” could be stated as an argument for lost