The Economic Case For Raising The Minimum Wage - 927 Words

The Economic Case for Raising the Minimum Wage The United States is recognized for its economic opportunities. Thousands come to this country for the chance to improve economic stability and climb the social ladder – opportunities usually not available in their home countries. However, there has been increasing concern regarding American wages compared to the rise in the cost of living. Many of the lowest paid workers receive wages that is far much below the federal minimum provision as stipulated in the Fair Labor Standard Act (FLSA). At the same time, costs to cover only the basic of necessities are rising at a much faster rate. Currently, only ten states that have raised their minimum wage rate above the federal minimum wage rate to match the increasing cost of living. The federal minimum wage is listed as ($7.25) per hour. Most low-wage earning workers do not received benefits such as vacation and the family medical leave. Economists believe raising the minimum wage will combat poverty and improve the economy while opponents argue that raising the minimum wage will weaken job creation in an economy still climbing out of a recent recession. Raising the minimum wage is necessary and will have the following three outcomes; Increase economic spending thus reducing economic recovery time, improve overall living for families, decrease the need for social programs such as Temporary Aid to Needy Families (TANF) and Supplemental Nutrition Assistance Program (SNAP). SupposeShow MoreRelatedMinimum Wage During The Great Depression1419 Words   |  6 PagesThe Minimum Wage Battle In the United States, the minimum wage was passed during the Great Depression in 1938 to protect the buying power of normal workers in a period in which the â€Å"unemployment rate was still a very high 19 percent† (Sklar, 2009, p. 1). Since that time, there has been significant debate about the controversial topic of raising the federal minimum wage. The federal minimum wage law was created to eliminate unfair practices of sweat shops and manufacturing companies during this timeRead MoreThe Minimum Wage Change 1151 Words   |  5 Pagesthe topic of minimum wage. With president Obama’s increase in the minimum wage to 10.10$ per hour people, both economists and politicians alike, have been debating whether raising the bar is a smart idea. At a time when the country the country’s inflation continues to rise at a steady pace and Americans are constantly working to feed their families, some economists know that a raise in the minimum wage would help elevate some of the difficulty. The last time the federal minimum wage was raised wasRead MoreThe Benefits Of Raising The Minimum Wage706 Words   |  3 Pages Minimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N. Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw 6-1b). Currently, the minimum wage in the United States is $7.25 per hour. For many years politicians and citizens have argued on what should be the minimum wage that would benefit the economy and society in generalRead MoreMinimum Wage And The Wage1639 Words   |  7 PagesMinimum wage is one of the many microeconomic policies that serve to correct imbalance in the economy. It is defined as the lowest amount of remuneration required of an employer to pay his employees during a given period of work. There exist different laws in different states that can fix the minimum wage policy. A current economic issue is minimum wage, or specifically, its pertinence to social inequality. Many sectors of society w ould be affected by changes in this policy. Minimum wage relies onRead MoreA Brief Note On Raising The Minimum Wage1503 Words   |  7 PagesWage War Alternatives to Raising the Minimum Wage Minimum wage is a topic of considerable controversy and a significant source of economic stratification. Essentially, the minimum wage policy is what defines the baseline income of â€Å"low level† or â€Å"starting positions.† Here in the U.S. most individuals will at some point in their life hold a minimum wage position. According to the U.S. Bureau of Labor Statistics, about 58.5% of U.S. citizens were paid at hourly rates, and about 2.6 million workersRead MorePros And Cons Of Raising The Minimum Wage1122 Words   |  5 PagesSince 2009, the federal minimum wage rate for employees has been $7.25 per hour. In retrospect, this is hardly enough pay to take care of one’s self-- let alone a family with children. If a person were to add up the average cost of living for one week and then compare it to the average amount of money earned in minimum wage for that week, it would be apparent that there is little to no extra money for emergency situations. Increasing t he minimum wage has been a major controversial issue; DemocratsRead MoreThe Case For A Higher Minimum Wage1659 Words   |  7 PagesRachel Dorf The Case for a Higher Minimum Wage In 1938, the Federal Government established a minimum wage through the Fair Labor Standards Act, during the Great Depression. Its stated purpose was to keep American workers out of poverty and increase consumer purchasing power to help stimulate the economy. President Franklin Roosevelt, understood that the minimum wage should be a living wage, he stated â€Å"by living wages, I mean more than a bare subsistence level — I mean the wages of a decent livingRead More America Must Create Jobs Essay1475 Words   |  6 PagesPrices everywhere are on the rise as wages are declining drastically. Class division has never been more distinct. Of those lucky enough to have secured the multiple jobs needed in order to maintain their subsistent existences, most make only a minimum wage, established by their state’s laws, which is then harshly taxed upon. Life is hard enough in our dying superpower of a nation, but even worse for the work force of America that must survive on minimu m wage. It is an offending disappointment thatRead MoreIf Minimum Wage Raise Up945 Words   |  4 PagesIf Minimum Wage Raise up In many cases in the U.S. people are suffering from the very low hourly wages. According to David Cooper: â€Å"As wages go down, the percentage of workers relying on public assistance gets higher: 60 percent of workers earning less than $7.42—only slightly higher than the $7.25 federal minimum wage—receive some form of means-tested public assistance.† Because the minimum wage is so low, many people are forced into programs, such as Medicaid, food stamps and the Earned IncomeRead MorePersuasive Speech Outline For Non Rising Of Minimum Wage Essay1228 Words   |  5 Pagessupport the non-rising of minimum wage. ___________________________________________________________________________ Introduction Attention getter (teaser): How many of you believe we in the state of California should have a higher minimum wage? Well we shouldn’t and I’m going to tell you why. Significance (why important to them?): A lot of people believe that because you re getting paid a higher minimum wage that it’s benefiting you but in reality that’s not the case. The purpose of my speech