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History of the living wage movement
The living wage movement
Impact of minimum wage on poverty
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The living wage is more and more being called a movement because the current federal minimum wage laws does not provide enough money for an individual that works a full time job to be able to support a family. Making them feel like they should not have to raise a family in poverty. Across the United States there are efforts to provide what is called living wages for workers which began with requiring all employers to pay at least the minimum wage to its workers that is equal to the living wage for the area (City/State) they are working in. The current minimum wage is set, depending on where you are living it can be up to several dollars short of what should be the living wage. The living wage movement is very active in full force forward …show more content…
The low income workers who receive public assistance will seem to make more in wages but will lose money from what public assistance they were also collecting causing them to request working less hours to maintain what they would have received from public assistance. A worker with children who is paid $7.25 an hour will have a higher income than if they were paid a higher wage, but because at the higher wage they will lose the public assistance such as food stamps, welfare, and other benefits because of making the higher wages. This is causing people to request to work less hours so they can receive their public assistance benefits. Who seems to gain the most from a living wage requirement is the public employee who is in a union as their involvement with the union is a form of protection in the job market. The living wage laws can and will have negative effects as they can in certain job markets reduce employment opportunities for the low skilled workers or the workers without a higher education. Some employers will be forced to eliminate some job opportunities because they will not be able to produce enough profit to be able to or justify to having to pay the higher wage. The hardest hit will be the mom & pop or non-chain stores as they do not have the backing or income to support
Many people who are against the raising are being paid a good amount of money and have no idea how life is being born in a poor family and then bearing another child into poverty. This is stressful for them already and the least we can do for these people is to raise the wage so they can live an easier life. The myths have been debunked involving the rise, and now we can get to
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)
(Webster). The differences between the minimum wage and a living wage are that government regulates minimum wage and a living wage is the amount of money that a person needs to earn in order to have what
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,
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.
In recent years the minimum wage has been a heated topic. People want to hike it up to 15 dollars an hour which they call a living wage, while others just want to keep it the same. There are also others that suggest to bring the minimum wage to around $10.78 an hour, which should be around the minimum wage now if we account for inflation from the 1960’s. I agree with that to a certain point. We as a nation need to bring up the minimum wage only up to ten dollars so that less people are living in poverty, and not any higher so that states with smaller economies don 't crash and burn.
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.
Minimum wage has been around for ages. Minimum wage employment was a temporary condition for people earning little payment until they moved on to a better paying job. These jobs helped build résumés, experiences, and skills for a better career. It has become the easiest way for people to receive easy pay. As years went on that idea began to demolish into a job that many families can get to survive and pay for their expenses. There have been many arguments going on, "Should minimum wage be raised or should it be lowered or eliminated altogether?" This action has its pros and cons. It can benefit many families as living cost has gone up, price for education is rising, and college students are in huge debts. It may increase poverty, but those
The minimum wage has always been a controversial subject that has more and more people debating about the subject. While the talk about minimum wages are highly popular it is an important subject to get informed about if you’re an employee or employer because it has to deal with your money. What is minimum wage? Minimum wage is the hourly wage an employer can pay an employee for his or her work. While the talk about raising the minimum wage has caused some attention in both negative and positive. Nevertheless, the topic that the minimum wage offers substantial benefits to low wage workers without any negative effects to business owners has a growing view among economists.
Most people during their lifetime have worked for a company in which they received minimum wage, I know I have and I am only 19 years of age. Well in 2013, 3.3 million people of the American workforce made the minimum wage, and of that 3.3 million people, nearly fifty-five percent were adults over twenty-five years old working full-time. With the current minimum wage at $7.25, there is no doubt that it is not sufficient to support a family with that amount. Although many people and many industries believe that the minimum wage should be raised to as much as $15 per hour, raising it to that level may be extreme. Minnesota raised its state minimum wage from $8 per hour to $9 per hour for companies making over $500,000 annually, effecting more
It is very difficult to live in America if you are living off of minimum wage, and many Americans are living off of it today. Raising minimum wages has its benefits like gaining more money to live better, but people do not see the down side of the increases in wages. With the increase in minimum wage, it also causes the cost of living to increase. How can this help the economy or help people? Minimum wages in America should not be increased because it will cause cost of living to increase, reduce employment, and cause businesses to lose money and workers.
The minimum wage being too low has been a public issue in America for generations. Basically, the debate includes two different opinions. Firstly, people who want to raise the minimum wage, and second, people who would rather is stay the same. The overwhelming majority of liberals are on the side that favors a raise. Additionally, a somewhat smaller proportion of conservatives favor the change as well, but for different reasons. The liberal opinion on raising the minimum wage is based on the idea that putting more money in the people’s pockets, will stimulate the economy, and decrease poverty. The problem that conservatives and liberals alike have with this, is that a few direct consequences are proven to apply when raising wages. Some proposed consequences include unemployment, inflation, and unfairness to higher educated people. Another main point is that raising the minimum wage is thought to helps small business by increasing worker satisfaction. This issue of minimum wage has become increasingly popular and important in current times, as president Obama has proposed the idea of raising the minimum wage of contract workers to 10.10$ 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
The national living wage was introduced by the government as a new rate per hour voluntary set by employers, applicable to individuals aged 25 and older, which is calculated according to the basic cost of living in the UK and is updated annually. (Gov.uk, 2016) The minimum wage rate per hour in the UK is at 6.70 pounds p/h for those aged 21-24 while individuals over the age of 25 get paid around 7.20 pounds p/h, while the living wage is set at 8.25 pounds p/h across the UK with the rate in London being at 9.40 pounds p/h due to the higher cost of living. (National Living Wage, 2016) What is certain is that the introduction of the living wage is bound to affect the economy of the UK in one way other. It might as well have an impact on other
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.