U.s. Federal Minimum Wage Essay

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U.S. Congress passed the federal minimum wage law in 1938 as part of their Fair Labor Standards Act. Federal minimum wages were intended to ensure fair wages were paid to an alarming amount of women and youths employed and paid substandard wages. This also seems to be the case today, where countless Americans who work full time, cannot make ends meet by making minimum wage. Evidence shows that raising the minimum wage would drive consumer spending, thus producing faster macroeconomic growth. Wage stagnation is one of the key things holding back our economy from growing the way we need it to.
Recent polls show that a majority of Americans support raising the federal minimum wage, while the U.S. Department of Labor reports that 30 states have set their own hourly minimums at more than $7.25 and hour (see Appendix A for more information on the minimum wage laws per state). George Miller (2014), a former California Congressman, said, “Income inequality is one of the greatest threats to America’s long-term economic vitality, yet we are widening that inequality with wages that subject people to live in poverty.” Still, the country is divided across party lines, while 85 percent of Democrats support raising the federal minimum wage, Republicans are split 50-45.
Opponents of raising the minimum wage argue that employers will refrain from hiring future employees and firing those who do not add value. They claim the young an inexperienced will end up without work or the ability to

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