... CERTIFICATE OF ORIGINALITY I certify that the attached paper, which was produced for the class identified above, is original work and has not previously been submitted by me or by anyone else for any current or previous class or course. I further declare that I have cited all sources from which I used language, ideas, and information, whether quoted verbatim or assistance of any kind, which I received while producing this paper, has been acknowledge in the references section. This paper includes no trademarked material, logos, or images from the Internet, which I do not have written permission to include. I further agree that my name typed on the line below is intended to have, and shall have the name validity as my handwritten signature. As of January 1, 2013 there was a minimum wage increase of 15 cents from $7.70 to $7.85 in the state of Ohio and 19 other states, this affected Ohio’s local government. Ohio’s local government will be responsible to enforce this new policy to employers. The department of labor wage and hour division is also responsible in ensuring this process is used by properly. The minimum wage increase policy was developed as a cost of living increase. Ohio will be affected by this new policy it will be more money back into the communities and give the minimum wage employees some spending power. The policy that has affected the local government is the minimum wage increase, which begins on Tuesday January 1, 2013. The local...
Words: 1597 - Pages: 7
...Overview of the Federal Minimum Wage The Fair Labor Standards Act (FLSA), a law that guarantees employees and youth a fair minimum wage and overtime pay. It is regulated by the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL); it mandates employers to pay all nonexempt employees a federal minimum wage no less than the determine amount set by the government (U.S. DOL, 2011). Unfortunately, the federal minimum wage still sits at $7.25 per hour and has remained the same since George W. Bush signed a law to change it on July 24, 2009 (Risher, 2013; U.S. DOL, 2011). So, why did so many government officials decline the increase of the federal minimum wage and why do they fear the positive impact that the increase will have on America? This paper intends to briefly discuss six laws, all pertaining to federal minimum wage introduced to the House of Representatives within a year and highlight one member of the senate who disapproved the law for passing. In addition, this paper will briefly point out statements made about why some Senators chose to decline the bill; and finally, this paper intends to briefly explain any legal issues preventing the wage increase and implications for management. Start of Hope: Minimum Wage Fairness United States senators and representatives have introduced numerous federal minimum wage bills to the House of Representatives in order to amend the Fair Labor Standards Act (FLSA) during their term. These bills were designed to either...
Words: 3510 - Pages: 15
...Introduction In 2014 14.8 percent of the United States population, 46.7 million people, were living at or below the federal poverty level (Census, 2014). As the income gap continues to widen, policy makers debate which policies best serve the American people by effectively raising the incomes of the poor. Many politicians argue that raising the minimum wage best increases the incomes of the working poor. However, others believe that increasing the earned income tax credit (EITC) best provides financial relief to low income families, while still others believe neither policy is necessary. This paper examines the costs and benefits of a Kentucky state-level minimum wage increase, a state-level EITC, and a combination of both. Discussion following...
Words: 681 - Pages: 3
...Ayman Lam Macroeconomics June 11, 2014 Dr. De Term Paper: Minimum Wage and Economic Growth Economic Policy Institute, most commonly known as EPI, has always been a crucial factor in the effort to increase minimum wage and highlighting its positive effects for blue-collar families as well as the general economy. As of today, twenty-one states including Washington, D.C. have already advanced in setting their minimum wage above the federal minimum of $7.25; in other words, almost half of the United States workforce is now under the influences of minimum wages above the federal minimum. Therefore, EPI took the opportunity to conduct data and reports from these states, with the aid of the Economic Analysis and Research Network, also known as EARN, in order to advance economic policy at both state and regional levels, and at the same time, demonstrating the insufficiency of having $7.25 as the minimum wage. President Barack Obama, during his State of the Union, requested for a raise in minimum wage. In the late 1960’s, the purchasing power of the minimum wage was at $9.22 an hour in 2012 dollars, which is nearly two dollars above the current level of $7.25 an hour. Inflation is a cause of reducing the purchasing power of the dollar; so as a result, when the minimum wage is raised, the purchasing power of the eventual wage is less than the proposed nominal dollar value. The minimum wage is twenty-three percent less than its peak inflation adjusted value of 1968. One of...
Words: 1963 - Pages: 8
...Abolish or Sustain? The Minimum Wage Debate Sarah Campbell May 8, 2013 Abstract In 1938 the Fair Labor Standards Act established a federal minimum wage. Minimum wage has continuously increased throughout the years due to interest rates and the value of a dollar. Since its introduction the minimum wage has risen from 25 cents an hour to 7.25 dollars per hour in 2009. In President Obama’s recent State of the Union Address he states, “Working folks shouldn’t have to wait year after year for the minimum wage to go up while CEO pay has never been higher.” He hopes to raise the minimum wage by 2014 to 9 dollars per hour. Following the President’s support on minimum wage increase Sen. Tom Harkin (Democrat-Iowa) and Rep. George Miller (Democrat-California) formalized a proposal known as S.460, the Fair Minimum Wage Act of 2013 to increase the minimum wage by 2015 to $10.10. This proposal includes increasing the minimum wage (in three incremental increases of $.95) and then indexing it to inflation (“as prices rise, so would the minimum wage” (Cooper, Hall 2013)). Also, the tipped minimum wage (the minimum wage paid to workers who earn a portion of their wages in tips) would be increased in $0.85 increments from its current value of $2.13 per hour, where it has languished since 1991, until it reaches 70 percent of the regular minimum wage (Cooper, Hall 2013). However, in the current tough economic times many people argue that an increased minimum wage will only hurt and that...
Words: 3250 - Pages: 13
...Many people in the United States have witnessed and experienced minimum wage jobs earning $7.25 an hour. People have been activists of raising the federal minimum wage for a long time. This federal minimum wage standard has been used since July 24, 2009 and has not been changed since then but the question is whether or not we should raise the federal minimum wage again to help families in need. The thought of raising the minimum wage standard recently has been a popular topic. In this article, Senator Tom Harkin, Representative George Miller and U.S secretary of labor Tom Perez propose the idea of raising the federal minimum wage and what pros can come from raising the wage. They talk about how much of an impact it would have on our economy. They also take into...
Words: 1212 - Pages: 5
...The current debate of raising the minimum wage at a national level is one of the biggest things legislatures are talking about nation wide. Because it has been slightly put down at a nation level, legislators at a state level are trying to push higher wages through. The effects of raising the minimum wage range from inflation to unemployment. Angel-Urdinola, Diego. "The Impact on Inequality of Raising the Minimum Wage: Gap- narrowing and Reranking Effects." LABOUR: Review of Labour Economics & Industrial Relations. Jun2004, Vol. 18 Issue 2, P317-327. Wiley Blackwell, June 2004. Web. 19 Feb. 2015. In this research paper, Angel-Urdinola uses examples from other countries to prove why raising the minimum wage isn’t effective. He says that raising...
Words: 2141 - Pages: 9
...Raising the Minimum Wage Student Name: Sylvie Makendi Course/Number: com /170 12/14/15 Faculty Name: Angela Grosse With $7.25 a person can maybe buy a whopper meal at burger king and a pack or chewing gum at a local convenience store. For a person working minimum wage to buy that whopper and pack of gum, they must work one hour. That is not enough to live a sustainable life. The meager wage brings forth recent discussion about whether or not the federal minimum wage should be increased. This divisive issue is especially prevalent within the bipartisan American political parties, the majority of Republicans do not want the minimum wage to be raised, and the majority of Democrats want the minimum wage to be raised. However, this issue should not be a political one because raising the minimum wage benefits everyone regardless of their political party of affiliation. There are many reasons to raise a minimum wage. In today’s society, it’s expensive to live in America and even getting day by day is tough. Raising the minimum wage will be beneficial for both workers and employers in the United States. It will put more money in people’s pockets. This money is invested back into their communities and small business which will help uplift the downtrodden economy. The growth of the national economy, the decrease in poverty and reduction in government sponsored social programs shows that the federal minimum wage should be raised to more than $ 7.25. Raising the minimum wage would help...
Words: 1047 - Pages: 5
...of Topic: Is a $15 minimum wage in large American cities fair to the affected businesses? On Nov 2014, San Francisco has voted to raise the minimum wage to $15 over a course of the next three years. This article intends to analyze the impact of the decision on businesses. The ripple effects of the wage hike are felt not just businesses that employ blue-collar workforce but also by larger corporations and the US economy as a whole. The wage hike is primarily aimed at providing economic stimulus to blue-collar workforce, who must live off their hourly wage. The article will be segmented into two parts – Fair and Unfair. Reasons that highlight both standpoints will be listed out and discussed in each segment. Fair to US Businesses Reduces employment and training costs. Employee turnover, ranging from 50 to 200%, is a serious problem among many businesses that employ a major chunk of the blue-collar workforce. (For example, an employer with annual turnover of 100% means that the firm is employing two different people for one position). All this translates to roughly 30 to 150% of yearly pay . Increases consumer spending due to increase in Purchasing Power Parity (PPP). Research undertaken by the federal government and also research agencies, indicates that wage hike results in approx. $50 B in spending. This increased spending can be captured by businesses in general. GDP grows by $22B , which leads to better business. Research by EPI, a research group funded partly...
Words: 515 - Pages: 3
...obesity, and the minimum wage Chad Cotti a, Nathan Tefft b,* a b Department of Economics, University of Wisconsin Oshkosh, Oshkosh, WI 54901, USA Department of Economics, Bates College, Lewiston, ME 04240, USA A R T I C L E I N F O A B S T R A C T Article history: Received 1 August 2011 Received in revised form 22 March 2012 Accepted 9 April 2012 Available online 15 April 2012 Recent proposals argue that a fast food tax may be an effective policy lever for reducing population weight. Although there is growing evidence for a negative association between fast food prices and weight among adolescents, less is known about adults. That any measured relationship to date is causal is unclear because there has been no attempt to separate variation in prices on the demand side from that on the supply side. We argue that the minimum wage is an exogenous source of variation in fast food prices, conditional on income and employment. In two-stage least-squares analyses, we find little evidence that fast food price changes affect adult BMI or obesity prevalence. Results are robust to including controls for area and time fixed effects, area time trends, demographic characteristics, substitute prices, numbers of establishments and employment in related industries, and other potentially related factors. ß 2012 Elsevier B.V. All rights reserved. JEL classification: I18 J38 H20 Keywords: Fast food prices Obesity Body mass index Minimum wage 1. Introduction ...
Words: 11767 - Pages: 48
...Pierre Okpara Persuasive Paper: Raising minimum wage 3/21/15 Professor Arin Black English 102 July 24th very easily could have been the day of rejoicing for Americans around the United States thanks to the Fair Minimum Wage Act of 2007, which amended the FLSA (The Fair Labor Standards Act of 1938) to increase the federal minimum wage in steps. The first increase came on July 24th, 2007 when minimum wage was increased to $5.85, then in 2008 when minimum wage rose again to $6.55, and lastly on July 24th 2009 when minimum wage was raised to its current $7.25. Instead of raising minimum wage consistently as the years before, six long years have passed since the minimum wage has risen at all in the United States and this has left Americans to have very little to rejoice about. Not only does the government owe their citizens a raise in minimum wage, but it is long overdue. Many Americans are drowning in debt but somehow find a way to enjoy their life as comfortable as possible without the help of a higher minimum wage. For many this may seem like the norm but poverty has grown ever so steadily and there has yet to be an answer for this since July 24th, 2009. Given this, I absolutely agree the minimum wage needs to be increased in order to match the rise in costs of living which, unlike minimum wage, has risen dramatically since the last time anything was done about it. To begin, I’d like to take you deeper into the history of our rise in prices throughout the economy since...
Words: 1978 - Pages: 8
...Microeconomics Research Paper Minimum Wage In the United States, minimum wage has remained at a low number for several years. Minimum wage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimum wage is considered a price floor and the minimum wage laws determine the lowest price possible that any employer must pay for labor. In an economic model, the quantity of supplied is greater than the quantity demanded and the minimum wage is above equilibrium price and quantity. Minimum wage prevents labor supplied and labor demanded from moving toward equilibrium price and quantity. Although the government is trying to maintain a good balance of income distribution, there are is a high amount of people that work year round and still fall under the national poverty level. The government tries to stop the rich from getting richer, and the poor from getting poorer, so they make sure that everyone is earning the same amount of money. Even if our balanced income distribution is at a good number, an increase of the minimum wage price would help our country in a lot of ways. Raising the current minimum wage is one way to reduce poverty, will help businesses grow, and could help a lot of communities as well. The first advantage of increasing the minimum wage is that it will help poor people to earn a higher income. For many workers, minimum wage is simply not...
Words: 1608 - Pages: 7
...Running head: INCOME DISTRIBUTION IN THE UNITED STATES Income Distribution in the United States and the Lorenz Curve 1 Market economies are favored and well-known for generating macroeconomic growth and progress in industrialized nations, such as the United States. Numerous academic studies and economic research have been done not only to measure economic growth, but also to analyze any disparities in income distributions among the general American population. This paper will examine trends and patterns of American wages since the 1970s, focusing on shifts in income distributions to see if these shifts can be interpreted as income inequality across different sectors of our society. Furthermore, this paper will study two important and interlinked methods of measuring income inequality, which are the Lorenz Curve and the Gini Coefficient Index. The Executive Branch of our federal government and the U.S. Congress keep a close eye on income distributions throughout the entire nation. These bodies rely heavily on data collected and analyzed by non-partisan agencies such as the U.S. Census Bureau, the Internal Revenue Service (IRS), the U.S. Bureau of Economic Analysis, the Congressional Budget Office (CBO), and academic institutitions that provide data and statistical analysis to assist in economic and budgetary decisions made by elected officials concerning a wide array of policy issues such as taxes, social insurance programs and other issues that impact the overall economy...
Words: 2108 - Pages: 9
...HRM Application Paper Coy, Peter. “How Much Am I Worth? - The Case for a $10.10 Minimum Wage.” Bloomberg Businessweek. Feb 2014: 10-13. Print. The Cost-Of-Living in Hawaii and New York are among the highest. Yet, in both states the minimum wage is set at $7.25. In his January 2014 State of the Union address, President Obama requested to raise a new federal minimum wage of $10.10 an hour. This movement has progressed within the past couple of weeks since its publication in February 2014. In the following pages, I will attempt to update and fill in the gaps where the article has left off. How would you like a 40% increase in your payroll? I bet that sounds like a great idea! How about if you and your fellow coworker’s all received a 40% raise? Even better right? Now, what if that 40% increase went through with the entire nation? Although raising the minimum wage would not increase everyone’s wage, this is where the controversy starts. Set in 1938, the Fair Labor Standards Act, or FLSA, is the fundamental compensation law in the United States. It is the federal law that establishes a minimum wage and limits the number of hours that may be worked in a standard week. It defines two categories of employees, the exempt employees and the non-exempt employees. The exempt employees are not allowed over-time pay, and non-exempt employees who are allowed overtime. The non-exempt employees are highly effected through this issue of raising minimum wage. Non-exempt employees are given the...
Words: 4144 - Pages: 17
...Minimum Wage Rates in the United States Algeria Robinson Kaplan University BU224 Professor Gurganious August 31, 2013 The working class citizens are extremely strong people. On a day to day basis they bear the routine rat race. It seems as soon as you clock out for the day you’re right back at work. An endless conversation by the coffee pots at work is how we the employed cannot seem to enjoy life comfortably because of several different reasons; the main reason is wage rates of pay. The people in my firm earn well above the minimum wage rate, but still have some complications financially. This in fact is intriguing; if we’re struggling to be comfortable how are those people able to survive actually earning minimum wage. In the United States the working class citizens are provided a wage by their employer for the tasks performed during their shift. For some time this wage has been under ridicule because it has been considered to be too low to survive and be at ease. The reality of this paper perhaps are shocking. It will contain that innumerable families are now struggling and striving to provide and finance their lifestyles with a single solitary income, nearly all are in need of government assistance, and the same number are long awaiting the new minimum wage to secure decent respectable wage. After speaking to one of an old high school friends she made it clear the constant daily struggle that minimum...
Words: 1363 - Pages: 6
