Minimum Wage Isn’t a Living Wage
"The rich get richer while the poor get poorer." This quote was originally stated in William Henry Harrison's 1840 speech but sadly enough can still be used today to describe our economic downfall and crisis. With California currently holding a minimum wage at $10 many argue that this just isn’t cutting it anymore. One of the only ways to live prosperously on this income is to work, relentlessly, day in and day out. With many people living day-to-day and paycheck- to-paycheck, it is safe to say that the place minimum wage is right now is not working for most of the nation. With our developing economy, standards of living, unemployment rate, and debatable employee morale, it just seems right to increase the minimum wage.
First, let’s talk statistically. A person working on minimum wage, if they work at maximum 40 hours a week makes around makes $260. With 52 weeks in a year, this is roughly $13,500 a year. This may seem manageable if you are living on your own but imagine being responsible for a family as well. Think about the cost of keeping your family healthy, happy and sucessful. But don’t forget about all the taxes and the bills. An average family spends around
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Raising this rate means minimum wage workers have more money to spend which means more money ripples throughout the economy as minimum wage employees are able to spend more. These low income families earn a little extra money every day or every week which allows them spend more on things they want. This isn't to say low-wage workers wouldn't save some of their extra pay, but given the poor savings rate of workers in the U.S., let's just say I wouldn't be surprised to see consumption rates rise. Why should our economy stay at a low point when we can make a simple change and be known for a nation of prosperity? With this simple change, our whole population can
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)
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.
Throughout the decade, a continuous firing debate still remains, whether to raise the minimum wage or keep as it is. People believe that raising the minimum wage can hurt the economy. More will lose jobs than gain. Though all are true, the amount of poverty shown throughout the decades are jaw dropping. That is in fact one of the leading factors. As there is yin and yang, the demand for a higher minimum wage is no coincidence or selfishness as others perceive as is. The poverty shown throughout the decade is deadly prominent. Minimum wage should be raised as people are not gaining enough money compared to the past, despite with more education, too many low quality jobs, “in active” unemployment are outcasted from the statistics, and finding jobs is more difficult than it was decades ago.
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.
Over the years the cost of living has been on the rise. Therefore, it is only right for minimum wage to increase as the cost of living increases. Many states and even some individual cities have taken the first steps toward raising the minimum wage. States like Washington and cities like San Francisco have already raised their minimum wage above the federal minimum wage. This is a very good start as it is becoming harder and harder for Americans to start and take care of their families. We need more states and cities to follow their lead some more Americans can feel more financially stable. This will make a better America for us all.
The minimum wage today has a lot of issues; some people say it is not enough to live comfortably. Many agree that there needs to be an increase in minimum wages and by doing that it can help with our issues of poverty. Statistics show that a worker who is full time and earning minimum wage makes only $15,080 a year, which is under the federal poverty line for a family of two. (Gitis, 2013) The problem with that is $15,080 is not a sufficient amount that a person can live and grow on. “A family of two can consist of a mother and son or daughter, father and son or ...
Raising the minimum will end up hurting Americans more than helping them. The people that are for raising minimum wage are people who believe that increasing minimum wage can help those people who are unskilled and need an income they can live on. Yet, raising minimum wage would do the opposite and make employers have to fire people who earn minimum wage, because they can't afford the higher wages. People need to realize that increasing the minimum wage would hurt people more than help them. In the end increasing minimum wage would result in some people being let go, for the reason, businesses can't afford paying them minimum wage anymore.
A person working at minimum wage will only make about $10,700 a year. When rent, groceries, bills and gas are all added up, it appears to be a nearly impossible task to keep a family afloat. But working 40 hours a week at $5.15 an hour, one makes less than $206 a week after taxes. Making $206/week, one brings home about $824/month. Adding 17 gallons of gas at $2.20 a gallon in a car; the cost ends up to be about $38 a week, $152/month. The gas and electricity bill about $120, $50 for cable, $147 for property taxes, $45 for the telephone bill, $25 for water, and $42 for house insurance. All this totals about $580 (Abrams, H). Making it difficult to afford cable, and make the smallest payment possible on all the bills causing one to slip into debt. This is reality for many of the people in the United States. At the current minimum wage level, a full time, year round minimum wage worker in 2005 will earn $5,378 less than the $16,090 needed to lift a family of three out of poverty (Minimum).
The minimum wage being too low has been a public issue in America for generations. Basically, the debate includes two different opinions. Firstly, people who want to raise the minimum wage, and second, people who would rather is stay the same. The overwhelming majority of liberals are on the side that favors a raise. Additionally, a somewhat smaller proportion of conservatives favor the change as well, but for different reasons. The liberal opinion on raising the minimum wage is based on the idea that putting more money in the people’s pockets, will stimulate the economy, and decrease poverty. The problem that conservatives and liberals alike have with this, is that a few direct consequences are proven to apply when raising wages. Some proposed consequences include unemployment, inflation, and unfairness to higher educated people. Another main point is that raising the minimum wage is thought to helps small business by increasing worker satisfaction. This issue of minimum wage has become increasingly popular and important in current times, as president Obama has proposed the idea of raising the minimum wage of contract workers to 10.10$ per hour (about a 30% increase from the current 7.25$ per hour minimum wage). A large number of people consider this wage hike unnecessary due to the fact that today’s value of minimum is higher than it has ever been since the 80’s, and because the wage hike comes at too high of a cost. All things considered, the issue of raising minimum wage is not a battle of political parties and their agendas, its really a debate between everyone.
On an average, a worker must make $18.92 per hour to afford a two-bedroom apartment in most places in the United States today (Network, Jolie Lee/USA Today). Additionally, most of the workers have to balance multiple job schedules, travel, and struggle to keep up their life going. In fact, according to the most recent available numbers from the U.S. Bureau of Labor Statistics, (2010 Census) in December of 2011 more than 7 million people were holding 2 or more jobs. “In this world, nothing can be said to be certain, except death and taxes.” Benjamin Franklin (1789). In brief, people work and dies to pay the circle of education, work and taxes. The increase in minimum wage will indeed decrease a huge stone of stress of working enormous hours. The federal poverty line guideline for a family of four is 24,250 according to 2015 census. (Obamacarefact). Accordingly, a person will have to work 50 hours a week in order to fulfill the guideline. Whereby, $15 an hour will perfectly meet 40 hours work law without overtime or working multiple
Because the cost of living has sky rocketed, it has become almost impossible to raise a family on a minimum wage job. A person living on his or her own cannot survive on minimum wage job either. Their living expense would just be too much. The earnings of minimum wage workers are crucial to their families well being. Evidence from 2013 and 2014 minimum wage increase shows that an average minimum wage worker brings home more than half of his or her family's weekly earnings. In 2013 one million single mothers with children under 18 would have benefited from a minimum wage increase to $10.
For the past three decades minimum wage has been seen to rise several times. Only helping some but more than anything harming most. So who are the ones feeling the effects? Certainly not the wealthy, it never is them, mainly it would be the working poor, unskilled and teenagers. Raising minimum wage would cripple the public even more than what it would actually help.
In a published interview with Saiful Islam Khan, MD at Essential Clothing Ltd, it was heard that if the minimum wage increases to BDT 10 thousand then one-third of the factories might shut down because it would be tough for them to survive specially for the small and medium sized companies. On the other hand, it was also heard that the companies or factories can still absorb additional 20% increase of the minimum wage rate without causing the disruption in such factories. he article 123 of the Labour Act states that workers should receive their monthly wages by the end of 7th day. However, it is still seen that workers are not paid accordingly. This is the main reason for which the workers try to form a trade union in order to fight such exploitations.