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History of minimum wage essay
Factors contributing to social inequality
Factors contributing to social inequality
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The idea of minimum wage is an intense argument that holds various opinions. It is a concept that was created to lift low-income families out of poverty. These good intensions have been unsuccessful thus far; minimum wage is not enough for families to live on. Theses bare-minimum pays definitely need to be raised throughout the United States. Despite the predictions that higher minimum wages would cause other issues, Inflation rates have shown that it just isn’t enough to live on anymore, and raising the wage would make the economy stronger by uplifting millions of workers. The United State’s Minimum Wage is about to be the lowest it has ever been. Even though minimum wage has been increased a couple of different times, inflation is the core …show more content…
reason that explains why workers are being paid less every hour than they were 40-50 years ago. If everyone were to earn the same amount of money, then everyone’s income would be the exact same. If everyone were to make no money except for one person, who would be earning of the money, that would mean that the income distribution would be extremely unequal. In a regular civilization, Income distribution should be somewhere in between perfectly equal or perfectly unequal. If a slim amount of citizens began to earn a large amount of the revenue in a society, the government would attempt to find methods to redistribute pay. The United State’s government tries to stop the rich from getting any richer, and the poor from getting any poorer. By doing this, the outcome is a good balance of income distribution. Minimum wage laws are the way that the governments get a good balance of income distribution. Most importantly, an increased minimum wage would pull countless families out of poverty. The official poverty rate now stands at almost 15 percent, an entire 4 percent higher than it was during the early 1970’s. Additionally, the current poverty rate has risen to 15 percent- 1the poverty rate of 1964 was 19 percent. (Eberstadt, p. 6) There are currently 28 million Americans making minimum wage. There are counteracting claims that congress should benefit the poor by taking away these guidelines that redistribute away from the poor families; the wage is expected to hurt the people rather than helping them. There are also various claims that minimum wage needs to be raised to $10.10. Right now, it is only $7.25 in most states. If the nationwide raise occurred, then those 28 million workers from all different households would have a direct increase in pay. Families all around the U.S. could finally make ends meet. Currently, the moderate pay for fast-food workers is about $9 per hour, which is about $18,500 per year to survive on. For a family of four, the Census Bureau’s poverty level is $23,000. That is approximately $4,500 less per year. There were over 3 million United State’s workers that worked year round in 2013. Despite their hard work, they unfortunately still fell below the National poverty level. It is clear that the current minimum wage is not enough to take families out of poverty. Raising minimum wage is a fundamental step in lessening poverty and providing every family the chance to be successful and just survive.
There are millions of hard workers in America that are barely balancing themselves above the national poverty line and desperately need to be paid more. Minimum wage needs to be higher, because it will lessen poverty and help the employed to support their families. The development of economic policies was created in 1933. Franklin D. Roosevelt called it “The New Deal”. Minimum wage became one of the policies that had been included. It basically promised that all American employees would earn a sufficient salary to support their families. The New Deal was the beginning of control of wages by the federal government. It made sure that every worker would be capable of earning a living wage. Because $7.25 per hour is not a living wage, that promise has been …show more content…
broken. Raising the minimum wage would result in employment growth. There are many claims that it would actually cause 500,000 people to lose their jobs. Since businesses would be paying more to their workers, they will want to hire staffs with more skill than the ones that they already have. Recent changes in minimum wage have shown that that is completely untrue. There are 13 states that have a higher wage than $7.25, which is the national bare minimum. As studies have been compared, they show that those same 13 states had a larger employment growth then the 37 that did not. It doesn’t matter what predictions are made if they are showing the complete opposite results. Since those states have had a higher employment growth, all states need to follow in their steps to employ more people who are currently jobless. To add to that, businesses like fast food restaurants always have job vacancies. The vacancies occur because the minimum wage is just not enough pay, so people quit. If the wage were at least $10.10, more workers would stay with their job, and even work more hours—because they want to. There have been more than 600 economic Nobel Prize winners that encourage the increase of minimum wage to $10.10; they even signed onto a letter in support for it. Additionally, if even if businesses did start looking for higher skilled workers, it would inspire people looking for jobs to up their skills.
There are always shortages in jobs that require college degrees. Most kids come out of high school knowing they can take the easy way out and not continue to college. If businesses stopped hiring young adults, since they wouldn’t be “skilled” enough for the $10.10 minimum wage, they would think more about going off to college. Currently there are ___ job openings in the medical field that need to be filled; yet another reason why higher minimum wages would strengthen the economy. A lot of people believe that all minimum-wage workers are young and all unskilled—which is only a stereotype. The truth is that the people who will be most effected by a higher minimum wage are adults in their 30’s working full time, that have a family and are trying to make ends meet. 88 percent of those who would benefit from a federal minimum wage increase are age 20 or older, and 55 percent are women. (United States Department of
Labor) It is very important that minimum wage keeps up with inflation. Congress sets the minimum wage, but it doesn't keep pace with inflation. Because the cost of living is always rising, the value of a new minimum wage begins to fall from the moment it is set. The minimum wage of $1.60 an hour in 1968 would be $10.90 today when adjusted for inflation (Bureau of Labor Statistics' Consumer Price Index Inflation calculator) The lowered minimum wage is one reason why so many families are in poverty. Opposing opinions are that a constant increase in minimum raise could cause higher living costs. First of all, people making the minimum wage can barely afford their housing as it is. A regular person making even more money an hour means more pocket money. Since they’ll have more extra money, it will result in more consumerism and up sales for businesses. If everyone is already making more money, it won’t account for higher living costs. There wouldn’t be a need for it. Skilled, high-wage workers won’t have to help pay for the Medicare and welfare of other unemployed or unskilled low-wage workers. Middle and upper classes of our society are taxed to provide welfare and support to the poor; not fair! It is clear that no one would want to continue to help pay for other people’s living expenses when there’s an alternative solution. People who don’t have jobs and don’t bother looking for one do not deserve the extra help. A higher wage means that the poor will work harder to find a job instead of relying on welfare. If fast food workers earned a decent living wage, they would not have to rely on food stamps, Medicaid, or other government programs when their paychecks don’t provide enough to make ends meet. Some claim that small business owners can't afford to pay their workers more, and therefore don't support an increase in the minimum wage. Small business’s sales would shoot up after consumers are making more money. Small businesses currently aren’t making enough money to raise pay because nobody has the extra money to spend. Raising the minimum wage would increase consumer purchasing power. Increasing purchasing power will make a greater economy because Business owners and minimum wage workers would both have greater incomes. Businesses that start having a greater income will not have problems paying their minimum wage workers more per hour. Minimum wage workers, for an example, fast food workers, work probably around twice as hard as they did in the seventies. These fast food companies hold their employees at wages that dig them into the hole of poverty; knowing that they are making billion every year, this doesn’t make much sense. Since there is increased numbers of families in poverty, minimum-wage workers work more hours and much harder just to pay the bills. There have been stereotypical claims that minimum wage workers are unskilled, so they don’t have to work hard. The demand at fast food restaurants and other businesses is greater than it was 40 or 50 years ago, therefor the workers put in more effort in one shift. Despite that, they are paid less then they would have in the seventies, considering inflation. To be blunt, Minimum wage workers just deserve the raise… plain and simple. Even though these people didn’t attend college, they don’t receive enough credit. Fast food worker's jobs are a lot tougher than people may think. Not everyone would be able to work long hours in such a quick-paced and demanding environment. A raised minimum wage is only right because of good ethical reasons, but also because the owners of these businesses make heaps of money and could afford to pay their employees a higher pay with no problem. These jobs are stressful, especially fast food places. It takes a lot to go through an entire shift of nonstop work, especially when they know they’re only getting $7.25 for every hour of hard labor. A lot of the time, It is a struggle to pay bills and support a family with a minimum wage of 7.25 or even lower-- especially because the prices of everything is only rising. For example, gas, car payments, kids, house payments, electric bill, water bill, and medical bills… they all add up quickly. Companies always hire individuals proclaiming that “these are your responsibilities,” and they expect their employees to do it. Then, while they are working, they are asked to fulfill more burdens and are trained in several other places, but they get no raise for the additional skills they have obtained. They deserve more money! United States citizens should clearly encourage raising the federal minimum wage because observed information proves that it does not lead to losses in jobs. Americans know that a minimum wage raise is an ethical way to help others that are struggling. For numerous working Americans, a rise in the minimum wage will make the change from living in poverty to not living in poverty. A higher minimum wage, a system that would guarantee employees that they're getting a reasonable pay for their efforts, would definitely provide for the poor families who would otherwise not earn a decent living.
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 United States minimum wage is not indexed to inflation. Due to this fact, the purchasing power of minimum wage falls as the price of consumer goods increases. The current hourly minimum wage is set at $7.25, however many states do pay above this rate. One example of this is in Michigan, the current hourly minimum wage is $7.40. The last time a change occurred to raise minimum wage was in 2009. President Obama has put out a proposal that is designed to raise the federally required hourly minimum wage to $10.10 in 2015. The public opinion of this proposal is all over the board ranging from a positive outlook to a negative one. Some of the negative remarks are that it would dampen the economy and shrink the hiring done by small businesses. “The Household Survival Budget for the average New Jersey family of four is $58,500 and for a single adult is $25,368 in 2010. These numbers highl...
This article gives you a yes and no opinion on whether or not the F...
One way raising minimum wage will be beneficial is that it could lift many Americans out of poverty. Raising the minimum wage in Illinois, would help the families of more than 1.1 million workers who work to meet their children’s basic needs and “reduce the adverse effects of poverty on a child’s well-being” (Fiscal Policy Center). Studies have shown that raising the minimum wage would help 1 in 5 Illinois families who are in poverty. By raising the minimum wage in Illinois, it would help workers with families spend money on food, housing, gas, and other needs without going into poverty. Along with puling Americans out of poverty, raising the minimum wage could also stimulate economic growth. Raising the minimum wage, is stimulating economic growth by worsening the income inequality and substantially reducing the employee turnover for the business. Increasing a person’s income would raise their yearly earnings by $3,640 and “Improve the economic security and reduce the economies poverty rate” (Fiscal Policy Center). Low-wage workers spend most of what they earn on their basic needs, which is quickly spent and does not leave the worker with much money left to spend on other needs. This boost in the minimum wage will stimulate the economy and help create opportunities for more people, by hiring more workers to keep up with the
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.
Obviously minimum wage has increased significantly since 1968 where it was at $1.60 but, how much has it really increased in connection with inflation and rising prices of things such as food, gas, land and etc? That is what's really lost in the whole conversation of increasing minimum wage to give people more money doesn't necessarily mean you can buy more. Senator Tom Harkin made a great statement regarding inflation senator Harkin said "today, tens of millions of hardworking Americans who are earning at or near the minimum wage can’t even aspire to live a middle-class life or achieve the American Dream. Instead, they are falling further and further behind" (Harkin). This is because of inflation, although minimum wage has increased from $1.60 in 1968 to $ 7.25 in 2013 we actually have less buying power. What that means is that $1.60 in 1968 would get us more food than $7.25 would in 2013. People are tricked into thinking that small incremental increases are good because we are making more, guess what we're actually making less. If we kept that $1.60 wage today and indexed it to account for inflation minimum wage should be at $10.56 in 2013.
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 ...
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
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.
Today the federal minimum wage is $5.15, but should be about $8.50 if Congress had adjusted it for inflation over the past 35 years. While $5.15 may not seen that bad, when factoring in such variables as sky rocketing gas prices, budgets can get pretty tight. David Shepard, a sophomore at Wayne State University, worked at a Meijer Retail and Grocery Superstore for over two years while in high school. At the time Shepard lived with his parents and didn’t have to worry about paying rent or buying groceries, all that he had to pay for was filling up his gas tank and paying for his car insurance. Shepard recalled, “It was all I could do to pay for the basics like gas and bill’s, I barely had any money to have fun on the weekends”. This is only an example of a high school student that can nearly slip by on minimum wage with only a few expenses. There are 1.8 million people in America with children under the age of 18 that would benefit from an increase in minimum wage (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.
I have seen in the news that you’re wanting to raise the minimum wages in the state of Florida. If this is true I believe you should reconsider. This would only hurt our economy more than it already has been. I know you wouldn’t want to do that, now would you?
The minimum wage must be raised because the cost of living has gone up considerably. Education is essential if one wishes to work, and the cost of education has increased drastically in the past twenty years. Companies should be requied to pay workers what they deserve, and that is more than minimum wage is now. With our new technology and the technology in the future work is harder and more complicated. A minimum wage increase would raise the wages of many workers and increase benefits to those disadvantaged workers.
In the 2014 State of the Union address, President Obama called on Congress to raise the national minimum wage from $7.25 to $10.10 an hour, and soon after signed an Executive Order to raise the minimum wage to $10.10 for the individuals working on new federal service contracts. An increase in the minimum wage has been a topic of discussion for many years now, and it looks like this year will finally see the first increase of minimum wage in 10 years. Not everyone agrees that there should be an increase, but many states have already raised their minimum wage rates because of the federal government’s inaction. Iowa raised the state’s wage, and it will rise again in 2016. Clearly there are benefits to a higher minimum wage; the current minimum wage in the United States should be raised because it helps the economy by increasing employment, and it is now at the lowest value it has been in more than 50 years, causing hardship for earners of minimum wage.