Minimum Wage And The Wage

There are a lot of people around the world who struggle with money and a satisfactory way of life. Whether they be in the United States or across the globe, there is a standard minimum wage set for the working class of their country. In the Unites States, there is a federal minimum wage of seven dollars and twenty five cents per hour worked. Almost every state has another set minimum wage, which typically is a little higher than the federal minimum wage, but it cannot be lower than seven dollars and twenty five cents. Countries set minimum wage laws, to ensure there is a basic quality of life amongst its citizens. As the minimum wage goes up in certain states, the quality of life also improves. The problem with a higher minimum wage, is now people are getting paid higher for entry level jobs which are meant for teenagers and people new to the workforce. If the minimum wage keeps increasing across the country, teenagers and young adults will have a much more difficult time finding jobs.

An increase in the minimum wage would push companies to take this route as it becomes more and more profitable to them. The end result of all of this would be a suddenly increased level of unemployment bound to become subsequent with an increase in government-funded welfare expenses, weakening the economy even more.

The controversy over what to establish as the official minimum wage in the United States has been debated and argued over for many years. Due to inflation, the gradual increase of pricings due to a saturation of printed currency, the minimum wage for workers has to be increased in order to compensate for the ever-fluctuating value of the U.S. Dollar. Many today are rising to the conclusion that a minimum wage of fifteen dollars an hour is necessary. This motion is designed to keep those who have minimum wage income out of poverty and to increase the amount of money in the consumer’s pocket overall. However, this particular increase in minimum wage will lead to the inevitable downfall of the United States’ economy and be a catastrophe for the working class.

Minimum wage was established on October 24, 1938 after President Roosevelt signed the Fair Labor Standards Act. (Grossman) Minimum wage was set to allow working class citizens an opportunity to work a reasonable amount of hours for pay that would enable individuals to maintain a minimal quality life.

When the minimum wage goes up, money will get shuffled back into the economy once the lowest earners can invest. “It also would help the economy by supporting consumer spending that in turn supports job growth” (Source 1). Once the lower class starts to earn more they become capable of consuming more, so in the long run it would benefit employer. Although some may argue that a higher minimum wage would hurt employers, it would not due to a gradual change. Also, more consumption of products creates more jobs which helps the economy and the general

Many argue that raising the minimum wage makes hiring workers more expensive, eliminates jobs at the bottom, slows growth and ultimately raises unemployment. Economic studies show that raising the minimum wage to keep pace with inflation creates little additional harm, but what the president is

Raising minimum wage would lead to an increase in demand and a lowering of supply. The price of goods would increase, along with the services. The shortage of jobs would increase the poverty rate and crime rate.

Minimum wage continues to increase, but does it increase enough? Minimum wage right now in Florida is set at $8.05 but who can really live off that. It is absurd that the minimum wage has not increase since the 1960’s in real buying power. The reason for this statement is that the minimum wage in the 1960’s allowed people to buy more items then they could buy with the minimum wage in 2013. In Order have the same buying power as in the 1960’s the minimum wage in 2013 would need to be at least $9.84 an hour. However, the minimum wage in 2013 was only at $7.25 an hour which was a 35.7 percent decrease of the buying power of an individual. The cost of living is continuously increasing. Bills, housing and everyday expenses continue to increase, which is making it impossible for people to live comfortably. The Minimum wage increase ties into chapter 8 Social Stratification and the U.S Class system in the Society in Focus book. Applying the conflict, functionalist and symbolic interactionist perspective to this chapter will help with further understanding the different aspects and causes with increasing minimum wage.

If minimum wage was increased many jobs would be lost. Employers would be forced to fire people because they wouldn’t be able to afford to keep them. “In 1938 minimum wage was raised by twenty-five cents, resulting in many people losing their jobs” (Cato Institute). Unemployment rates would be higher than ever. Raising the minimum wage would also make it more expensive for business’ to run, giving them no choice but to close down sending more people out of work causing the unemployment rate to go up (ProCon.org). Raising the minimum wage would result in higher prices, which would then result in less items being sold (ProCon.org). Without money

Many fast food workers and minimum wage employees have been protesting recently, in hopes of increasing the federal minimum wage. States such as Seattle, that have already increased the minimum wage to $15 per hour, and California, that has approved a bill that will change the minimum wage to $13 per hour in 2017, have already jumped on board with the movement. President Obama and many other protesters around the country who are fighting for the increase in the minimum wage believe that the raise will decrease poverty among Americans and provide a stable income to support a family, or serve as a livable wage (Lee). Instead of creating a positive impact on those in need, increasing the minimum wage will affect the lives of lower-income, lower-skilled workers in a negative way. According to conventional economic analysis, employment levels for lower-income workers in jobs such as fast food, or any job that pays minimum wage, have steadily decreased with the rises in the wage (“Effects of Raising”). While it will negatively affect the lower-income workers, the other half of Americans who work for higher wages and are not in poverty, will have increased incomes (“Effects of Raising”). Raising the wage will not produce the desired outcome and will consequently make the situation worse. Also, these types of jobs are not meant to be supporting families or be a livable wage. These jobs are stepping stones for teens and young adult workers to gain

Raising the minimum wage by 10 percent would cause a 1 to 2 percent reduction of teens and low skilled workers to be out of a job. Because teens and young adults make up the majority of minimum wage workers, they would be the ones most impacted. If the minimum wage were to be raised, teens and young adults, who could be considered less skilled workers, would have to compete with higher skilled and most likely older workers. Employers would want to have skilled workers working for the higher wage. Younger and less skilled workers usually are part-time, and since if the minimum wage were to be increased there would be 550,000 less part-time jobs which would reduce the number of teens and less skilled workers who are part-time by 310,000. Also, employers would not want to or be able to hire as many people because they would not want to pay all of them more. Some people say that increasing the minimum wage from $7.25 to $10.10 would put about 500,000 people out of a job and it would become hard for young, less skilled workers to find jobs because it would be too expensive. Having to pay for many employees would force businesses to raise their prices, which would reduce the demand for their products causing a decrease in demand for the employees who create the product. Raising the minimum wage could increase some people’s pay if they are able to keep or find a job, which is not very

Minimum wage has a big impact on the economy and has the potential to harm it. Raising minimum wage to the right amount is a key to keeping the economy safe. If minimum wage is increased to $10.10, it will increase economic activity and create more jobs. Raising minimum wage too high will harm businesses and the economy. In an article by Lauren Dixon, she wrote that “If a new minimum wage is set low and close to labor costs, there would be minimal harm to business; if set too high,

How would a minimum wage increase effect employment and family income, businesses, and the economy are just a few of the main arguments. Typically any increase in wage also increases income right? Raising the wage in the perception of small business is not usually a good move for the economy. Poverty is an important factor when it comes the economy and minimum wage could be the solution to that.

The economic effects of raising the minimum wage can be damaging, but I believe the benefits of it outweigh the negatives. Those who tend to live on the minimum wage - fast food workers, retail employees, ext. - tend to spend most to all of their income. By raising their wage, they are able to 1. spend more and 2. possibly invest more. This would have a ripple effect throughout the entire economy - leading to raises for everyone. It is

News stories abound with demands from workers, organizations, and lawmakers to increase the federal minimum wage. Headlines throughout the country highlight recent minimum wage policy changes in major cities such as Los Angeles and Seattle. Last month, Governor Andrew Cuomo of New York announced an approved minimum wage increase to $15 an hour for all fast food workers in the state (McGeehan). Even the website for the White House has a separate page, “Raise the Wage,” advocating for Congress to increase the federal minimum wage to $10.10 an hour ("Raise the Wage"). The most commonly held beliefs supporting an increase in the federal minimum wage are the potential lifting of families above the poverty line and the reduced demand for governmental assistance promised by livable wages. Democratic legislators believe people who work hard in the United States should receive living wages that combat poverty. Emotions flare over the minimum wage debate due to its strong connection with poverty and governmental assistance. While the issue tugs at the heart, people must also consider the issue logically in order to avoid unforeseen consequences. Increasing the federal minimum wage will have negative effects on training opportunities, non-wage compensation, and labor competition.