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Minimum wage must be raised
Why should the federal minimum wage be increased
Current state of the U.S. economy
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Currently the United States of America is undergoing economic difficulty, with the gaps between the upper “1%” and the “99%” only growing in size. Along with this ever increasing gap, many Americans are finding that they are no longer making enough money to simply survive in the current economic climate. Due to this, there have been calls for the Federal Minimum Wage to increase from it’s current $7.25 an hour to a much higher number, many calling for $15.00 an hour. However, I propose and argue that the implementation of a federally mandated, flat-across the board, minimum wage brings more harm than good. It reduces the success and viability of new and growing small businesses, forces massive wage increases upon large businesses, and can lead …show more content…
I propose that the clause in the Fair Labor Standards Act of 1938 that details the implementation of a Federal Minimum Wage be rewritten and renamed to “Accommodation to Cost of Living”. This clause would outline the new implementation of a federally mandated living wage based upon the average cost of living of counties within states. This clause would demand that states create positions for professional economists, who would review all the state’s counties and their separate average costs of living, and set a reasonable minimum wage based on several factors, including but not limited to: Cost of living in a single studio sized apartment in the area, Availability and quality of Public Transport, Average cost to open and maintain a new business in the district (sorted by type; restaurant, retail, etc.), and many other key factors in determining the most reasonable of amenities (substantial food, water, shelter, clothing, etc.) for the people doing the most basic of jobs.
Many people against raising the minimum wage create arguments such as, “it will cause inflation”, or, “ it will result in job loss.” Not only are these arguments terribly untrue, they also cause a sense of panic towards the majority working-class. Since 1938, the federal minimum wage has been increased 22 times. For more than 75 years, real GDP per capita has consistently increased, even when the wage has been
The minimum wage was, as it should be, a living wage, for working men and women ... who are attempting to provide for their families, feed and clothe their children, heat their homes, [and] pay their mortgages. The cost-of-living inflation adjustment since 1981 would put the minimum wage at $4.79 today, instead of the $4.25 it will reach on April 1, 1991. That is a measure of how far we have failed the test of fairness to the working poor.” (Burkhauser 1)
Understanding the basic concept of minimum wage is important for every single individual. We all live in this world together and it is obvious that there is an order. In order to continue our lives and afford our basic needs, we all need to work and gain wealth. As the old adage says ‘‘There ain’t a such a thing as a free lunch.’’ We need to give up on something that we like to get something else that we like. That’s why, every single individual in the society face trade-offs. However, people have different status. Some people work as employees and some work as employers. In that case of minimum wage the trade off is between employees and employers. Employees work for employers in order to gain money and afford their minimal living expenses whereas employers give up on their money and pay for employees because employers take care of their need of labor. Employers pay for their workers who we call employees and employees gain hourly money. The calculated minimum money that they gain in an hour base called minimum wages. Besides, there is this cycle that everyone actually works
Imagine working under poor conditions for over 40 hours a week to afford basic human necessities only to remain nothing more than a cog in a corporal machine seen unworthy of livable wages. While this may seem unrealistic, it proves as reality for many lower class Americans. Minimum wage has seen a drastic decline in relation to the inflation of living costs, an issue addressed in Lew Prince’s, “The American Dream Needs a Fair Minimum Wage”. In the article, Prince, a business owner, states, “... in 1979, the minimum wage was $2.90 -- that would be $9.50, adjusted for inflation in 2014 dollars”. Even with this information, many americans above the poverty level line argue against an increase in wages. Although opinions often
Currently, in the United States, the federal minimum wage has been $7.25 for the past six years; however, in 1938 when it first became a law, it was only $0.25. In the United States the federal minimum wage has been raised 22 times since 1938 by a significant amount due to changes in the economy. Minimum wage was created to help America in poverty and consumer power purchasing, but studies have shown that minimum wage increases do not reduce poverty. By increasing the minimum wage, it “will lift some families out of poverty, while other low-skilled workers may lose their jobs, which reduces their income and drops their families into poverty” (Wilson 4). When increasing minimum wage low-skilled, workers living in poor families,
On April 4, 2016, California Governor Jerry Brown signed a bill that would significantly raise the minimum wage for California workers. By 2022, California 's workers will receive a minimum wage of $15 per hour (Kurzweil, Anthony, Sara Welch, and Kareen Wynter). Brown signed this bill because employees cannot live above the poverty line if their minimum wage is not proportional to the cost of living (Scheiber, Noam, and Ian Lovett). The purpose of the minimum wage is to ensure that workers can provide essential amenities for themselves and their families. Many economists have been in a debate about this topic with mixed feelings, whether increasing the minimum wage would be a reasonable legislation or not. For most average American workers, at first, the idea of raising their salaries might make them feel thrilled and optimistic. However, increasing the minimum wage will have its pros and cons effect on the economy. Despite numerous of arguments from both sides, a compromise can be met regarding minimum wage.
The living wage movement is an economic reform movement that has become one of the most important public policy issues that has come up within the last 10 years. Although there is no single definition, it is often defined as an hourly salary that allows working families of four to have an income that is above the federal poverty line. This means that the livable wage laws often stipulate that hourly wages should be two to three times above the federal Mininum wage. However, unlike the Mininum wage, the living wage has so far only been enacted on the county and city level. Cities and counties enforce the living wage for companies that have contracts with their respective cities and counties, receive subsidies from their cities or counties, other economic benefits cities and counties provide to companies, and in some cases a livable wage is required for the tourist areas of the particular city. For cities and local governments, the livable wage is perceived as a measure to increase the welfare of the poor. However, like everything in life the livable wage creates its on costs that along with its benefits of increased wage to some low income earners.
Poverty continues to grow in America. The average minimum wage in the United States is $7.35 an hour- far too low in today’s society. Key expenses, for example, gas and housing prices, have gone up significantly since the minimum wage was last changed in 2007 (Wagner 52). The laws creating the minimum wage were intended to improve the standard of living and decrease poverty. Raising minimum wage is a vital step in decreasing poverty and giving every family the opportunity to survive and succeed. Millions of hard-working Americans are below the poverty line and need an increase in pay. Minimum wage must be raised because it will diminish poverty and assist the working class to support their families.
Gitterman, Daniel P. “Remaking A Bargain: The Political Logic Of The Minimum Wage In The United States.” Poverty And Public Policy 5.1 (2013): 3-36. EconLit. Web. 24 Oct. 2013.
A federal minimum wage was first set in 1938. The first minimum wage was just 25 cents an hour in 1938. Can you imagine surviving off of 25 cents an hour? Now just over 70 years later the federal minimum wage is now 7.25. The question at hand is the federal minimum wage enough to meet the minimum requirement for a good, happy and healthy life? Some states and cities say no. While a select few states and cities have mirrored the federal minimum wage of 7.25, some states have placed their state or city/county minimum wage marginally higher than the federal minimum wage. So why would some states prefer to have a higher level than required by the federal minimum wage when some state have decided to match or even go below the federal minimum wage level. The answer to this question lies within each state city and county and how they perceive the cost of living in the presiding area. Minimum wage needs a makeover in America despite some of the negative effects that may come along with it. This paper will explore the reasons behind federal and state minimum wages and why some of them differ among states counties and cities across America.
Living wages became a hot topic in 1994 when Baltimore, Maryland officials adopted a policy that required all companies that received public funds or worked on government contracts to pay a wage that would sufficiently provide for the basic needs of the people they employed. Living wages differ among cities since it is calculated by the cost of living in that area. The cost of living is based on available childcare, healthcare, housing, food, and transportation costs. According to www.responsiblewealth.org, (2005) in 2000, the living wage amounted to $17,050 a year for a family of four, or $8.20 per hour for a full-time, year around worker. Most studies show that the economical benefits of living wages, such as worker productivity and reduced turnover, are increasing, and I must agree with Neumark (2003) who explains that living wages overall can reduce poverty, and living wage laws are effective, but there is an obvious tradeoff that occurs with wage increases, specifically employment reductions for individuals with little or no skills. Issues such as these will be discussed in greater detail in this paper.
On Saturday, June 25, 1938, President Franklin D. Roosevelt signed 121 bills. Among these bills was a landmark law in the United States’ social and economic development—Fair Labor Standards Act of 1938 (FLSA) or otherwise known as the Wages and Hours Bill. This new law created a maximum forty-four hour workweek, guaranteed “time-and-a-half” for overtime hours in certain jobs, banned oppressive child labor, and established the nation’s first minimum wage. By definition, a minimum wage is the lowest wage permitted by law or by a special agreement (such as one with a labor union). Throughout the years, the minimum wage has been a central debate topic for the socioeconomic world and now in 2014, the debate has broken through the surface once more. In order to make a choice of whether the wage should be increased or decreased, the history of the wage is needed to make an informed decision.
Americans are not wrong in thinking that increasing the minimum wage will increase low-wage working families’ incomes, and some of these families will rise above the national poverty threshold. While increasing the minimum wage might benefit some American families, it will hurt others. Increasing the minimum wage will eliminate many low wage jobs, which would then result in many people jobless and therefore, a substantial drop in those individuals’ household incomes (“The Effects of a Minimum-Wage Increase on Employment and Family Income”). . “Raising the country’s minimum wage could boost the incomes of millions of Americans, but it could also potentially cut total employment by hundreds of thousands of workers” (Kurtzleben). An increase in the minimum wage lowers employment, which makes it harder for these workers with minimal skills to find a job. Congress then explains that low income families will actually not bring in any benefits from an increase of the minimum wage (“Would an Increase in the Federal Minimum Wage Help or Hinder Small Business” 2-3). While increasing the minimum wage might raise the standards of living for some low wage workers and families, if the increase in minimum wage reduces employment rates, there is no certain answer on what
A while ago I was told by my parents that I got a call from (my now boss), Donald Makepeace, asking if I was still interested in a job. We played phone tag for the longest tag, but finally I was hired at the local Dairy Queen. My parents originally said that I was supposed to contribute some money to help pay for insurance, gas ,and ect. After, seeing how much money I brought back week after week, they ignored that request. The truth of the matter is, it’s hard to live on a minimum wage job. In fact, many individuals must have at least two jobs to keep the bills meet. So, President Obama is trying to get Congress to pass an increase in the minimum wage. However, Congress refuses to raise the minimum wage. I agree with Congress, that we should not raise the minimum wage because these jobs are mainly for high school students and more people wouldn’t be able to hire people.
Living with a low wage job can be very stressful on people and most of us don't even know it. Us, average joes, just go along with our daily lives by working nine to five on the weekdays and get our normal annual salary. On the weekends, we spend time with our children and spend that money on fun stuff to do. We live in a well secure home, we have nice cars, and we have plenty of food to eat. But there are others who aren't as lucky.