...Should the government raise minimum wage One of the biggest debate is whether or not should the government raise minimum wages. Individuals who is living on a minimum wage will find it a bit difficult. They may be struggling to pay their bills, providing food on the table, and clothing themselves. I suppose it is unfair to the hard- working individuals. Minimum wage needs to be raised so people would be able to afford things. There will be more opportunities for jobs if minimum wages increased. If the people who make minimum wage spend more, then businesses will earned more and will be in the need to hire more employees. The only problem is the surplus of workers because than many employers would want to get paid more. There...
Words: 372 - Pages: 2
...ALL AMERICANS MOVING TOWARD POVERTY. That sentence is probably as article that came from a newspaper, or a news anchor. In all reality poverty is a big struggle in today’s time and what people think will fix it may not the best solution, but my Idea makes more sense to me. Rather than raising minimum wage, why don’t we give people more opportunities for jobs, that way prices for goods do not raise and more people can make their way out of poverty. If we could actually raise job opportunities we probably would not have somewhere near the millions of people living in poverty. “CNN.com op-ed a policy analyst with the group said that an increase in the minimum wage could boost the economy and create one hundred-sixty thousand jobs.”(Saltsman)...
Words: 273 - Pages: 2
... (History Of Minimum Wage) President Franklin D. Roosevelt characterized the Fair Labor Standards Act of 1938 (FLSA), as “the most far-reaching, far-sighted program for the benefit of workers ever adopted in this or any other country.” A law drafted by Senator Hugo Black of Alabama and signed into law in June 1938, the FLSA was designed to “put a ceiling over hours and a floor under wages” by establishing an eventual maximum 40 weekly work hours. Henderson, David R. "Raising the Minimum Wage Will Not Reduce Poverty." Poverty. Ed. Viqi Wagner. Detroit: Greenhaven Press, 2007. Opposing Viewpoints. Rpt. from "The Negative Effects of the Minimum...
Words: 917 - Pages: 4
...Some people may think raising the minimum wage will reduce poverty, but guess what it really doesn’t to a point. Let me break it down for you, you see raising the minimum wage will help out, but what else is changing when you raise the minimum wage? Well when you raise the minimum wage something else changes with it. It actually redistributes income among poor families, it puts others out of work, and it doesn’t put low-wage workers out of work. Raising the minimum wage will not reduce poverty. Admittedly, Raising minimum wage increases in tax income, help bigger families, and increase in annual earnings . “In 1998, a typical family of four with a full-time, minimum -wage worker had income above the poverty line when food stamps and EITC benefits were considered” ( Furman, and Parrot). Food stamps and EITC benefits are considered for a big family of four because it will become hard for them to live with because you have to buy food, pay bills, mortgage/rent (etc). Raising the minimum wage could help out a little, but not a lot. You see raising the minimum wage will only help get big families with food and more. However once you raise the minimum wage other things would have to either change or something would have to go. other people’s pay may go up or you would have to try to recalculate how everyone’s pay is being...
Words: 890 - Pages: 4
...Date: 22/06/15 The Effect of a Raise in the Minimum Wage on Employment and Profitabilty in the RMG Sector of Bangladesh, Drawing Sources From Other Developing Countries The study of minimum wages has led to many debates surrounding the topic whether a raise in minimum wage can kill businesses in profitability and employment or the change in profitability and employment is insignificant. This is a hot topic for policy makers in both developed and developing countries as a raise in minimum wage affects the economy in terms of economic growth, standards of living for the poor, survival of businesses and employment. A lot of research and literature has shown that a hike in minimum wages do not particularly affect the developed nations but the same hikes in developing countries can cause damage to firms depending on the size of the firms and their profitability. This paper attempts to show that the garments sector in Bangladesh (Ready made Garments Industry) faces the same dilemma. Since the Savar tragedy in late 2013 where a garment factory, Rana Plaza, collapsed which killed more than 1,100 people and injured and more than 2,500 people injured, garment workers and civil society demanded a raise of minimum wage from 3000 tk to 5,300 tk every month. This tragedy and similar events in developing countries lead us to think how businesses especially in the developing countries where wage rates and productivity are low can operate if minimum wage is suddenly increased threefold and...
Words: 2415 - Pages: 10
...Why this Salary Raise is a Bad Thing Introduction: Economics has been based on multiple theories throughout history, and one of the most popular has been the free market or laissez- faire theories. This theory is based on letting the economy grow on its own without government intervention. The laissez-faire theory is logical for several reasons including, supply and demand and competition. Traditionally, consumers will only pay the amount of value they perceive the product is worth. In the same vein, an employee will only work for a wage that he deems appropriate. If the employer lowers the wage, fewer workers will desire the job. These are a few of the reasons why the free market principle has many benefits. However, in a free market there can also be market failures. Market failures can arise from a multitude of situations such as pollution, or extreme low wages in areas of poverty. In a free market, a company could cause massive amounts of pollution and not have to bear the market cost of that pollution. The society as a whole, including people who do not benefit from the cheaper product, are the ones dealing with the polluted environment. Currently our government has been discussing a raise in the minimum wage. President Barack Obama is pushing for this bill and has many supporters. A rise in the minimum wage will be a major business issue for the next year and presidential election. Pros: Raising the minimum wage some enticing benefits to the American people and...
Words: 1237 - Pages: 5
...Rasing the Minimum wage “The average CEO makes 933 times more than a full-time minimum-wage worker,” (10 Reasons to Raise the Minimum Wage (with Charts)).”The country will benefit if we raise the minimum wage,Others think that we won’t prosper as a whole.Many Americans will be positively affected if the minimum wage is raised because, income inequality would be reduced, crime rate would decrease, and the general quality of life will be raised. If we as a country raise the mimmum wage we would reduce income inequaltiy. Others think that by raising the minimum wage, the country would transform into a socialist government, because everyone is now somewhat equal. People wouldn’t have to rely on food stamps to get the essentials. “3.5 million people wouldn’t have to use food stamps to get the essentials anymore,”(10 Reasons to Raise the Minimum Wage (with Charts)).” Many Americans will come come out of poverty by raising the minimum wage.“Over 5 million people would come out of poverty by raising the minimum wage to 10.10,”(- Berman).” An average CEO makes a lot more money than a minimum wage worker.“The average minimum wage worker ($15,080)...
Words: 504 - Pages: 3
...Raising the Minimum Wage Over the years the minimum wage has been a talked about topic. Many people would see it as a great idea because it would help families financially. In reality raising the minimum wage would be more of a struggle rather than a gift. The minimum wage has always been a struggle for people. Many people think that raising the minimum wage will solve all of our problems, when in reality it will not. It would only reduce the human motivation. Raising the minimum wage would also eliminate jobs making the economy struggle more. There would not be enough money circulating through the economy. Raising the minimum wage would reduce human motivation, eliminate jobs, raise taxes, and make the economy go into a hyperinflation. Raising minimum wage will reduce human motivation. In a perfect world where everyone comes from a good home, and lives in society, where people are raised to strive for better. In today’s society we do not have the perfect world. We have children being raised up to where they have to find a job at a young age just to help support their family. Children being raised up in a home like this creates a loss of ambition. Imagine, only being a child getting a job at such a young age. The only thing on your mind is being able to support the family with the money that is coming in. Imagine fighting to get the education back that was lost. Imagine not being able to go to school because there is no more time or money to help out yourself. Then the...
Words: 1676 - Pages: 7
...The minimum wage is often thought of as a guarantee of fairness in the employment market. As it is erroneously perceived, the minimum wage ensures that every person receives a living wage. However, the minimum wage neither guarantees that an individual be employed in the first place, nor does it guarantee that an employee will be offered enough hours of work in order to garner a so-called “living wage.” A raise in the minimum wage, without a raise in productivity for the given work, will result in companies resorting to drastic measures to secure profits. These measures include cutting down worker hours, implementing rigorous productivity standards, and most importantly, raising the cost of products and services. An increase in the minimum wage will result in an increased difficulty for low-skilled individuals seeking work, as they now have to compensate for an inequity in the value they provide and the wage they are guaranteed. In addition, those already past the threshold of the minimum wage will be forced to endure a rise in the cost of living, despite the fact that they did not receive a raise in their personal wage. Lastly, raising the minimum wage will degrade the idea of the free market, a system which allows prospective employees to exchange their work to an employer for an agreed upon wage, including wages that may not conform to the restraints of the minimum wage. Ultimately, the federal minimum wage should not be raised as it will encourage an increase in the unemployment...
Words: 1419 - Pages: 6
...Kelby Storm Rough Draft The minimum wage in America is a problem that is continuing to grow. This can be fixed by raising the minimum wage. In Webster's college dictionary "minimum wage" is defined as “the lowest hourly wage that may be paid to an employee” (“Websters College Dictionary” 845). The minimum wage determines what a human makes per hour which in America is not where it should be. At a job there is a low that can be set for how much the minimum is per hour worked. Many places put it at minimum wage just so that they can make as much money for the company without losing a bunch to pay the employees who are the one that keep the business running. Minimum wage is a very debatable topic as people view it as it is too high and others...
Words: 1245 - Pages: 5
...Raising Minimum Wage Intermediate Microeconomics In the 2014 State of the Union address, President Obama called on Congress to raise the minimum wage from $7.25 to $10.10 per hour (The White House, n.d.). Many arguments stand both for and against the $2.85 per hour raise, all of which cite the affects it may have on employer costs, household income, and the economy as a whole. The majority of the arguments, however, point toward the major economic benefits that are capable if such a raise occurs. The federal government put into place a minimum wage in 1938. Nominal minimum wage values have increased intermittently ever since, starting at $0.25/hr, growing until it reached its current $7.25/hr. It has increased the most recently in three $0.70 increments, from $5.15 to $5.85 in July 2007, to $6.55 in July 2008, and to $7.25 in July 2009, where it has stayed for the past six years. In more recent years, various cities and states have made their own decisions to raise their minimum wages. For example, in 2015, San Francisco raised its minimum wage to $12.25 per hour, with plans to raise it further, to $15 per hour in 2018. In 2016, California will raise its state-wide minimum wage to $10 per hour, making it the highest state’s minimum wage (Smith, 2015). There are four major arguments against the raise of minimum wage – job loss, less job availability for low-skilled workers, lack of poverty reduction, and higher prices for consumers. In the Southern Economic Journal, experts...
Words: 1341 - Pages: 6
...California Minimum Wage COMM/215- Essentials of College Writing California Minimum Wage In 2016 California minimum wage will be the highest in the country jumping form $8 per hour to $10. This will be the first minimum wage increase in six years. This increase will come in two separate $1 increments the first to take effect on July 1, 2014, and the second on January 1, 2016. Democrats back the bill saying it will help families in this economy, and it will also stimulate the economy because people will spend more money. Governor Jerry Brown said that this was an “overdue piece of legislation that would help working class families.” Republicans say it will hurt small business and hurt job growth. The California Chamber of Commerce called it "a job killer," and the California Restaurant Association said it was a "blow to small businesses" because they were thrown off by the proposal of the raise in minimum wage (“California to raise minimum wage to $10 by 2016,” 2013, para. 10). The maximization in the raise of the California minimum wage will help to decrease poverty in California. Even with the tax relief that was put in place for a family of two children, most families are still below the poverty line because they are working full time jobs earning minimum wage (“Obama gets behind democrats' $10.10 minimum wage proposal,” 2013, para. 10). Most families that are working only earning minimum wage are barely making ends meet to support their families. Hiking up the minimum...
Words: 835 - Pages: 4
...A huge controversy in the economics world in 2012 has been a possible raise of the minimum wage from $7.25 to $9.00. Many supporters of this increase believe that a $9.00 minimum wage would enable many adults to make enough money to live off for a year. This wage increase would give low-income families a chance to make more money to support themselves and their families. Following this, supporters say these so called “low-income” families would spend more, thus resulting in an increased flow of money in the economy. However, what these supporters do not see is, many of these families will go to large department stores or super stores to make their purchases. With these large stores getting all the money many small businesses will be forced to close their doors. In addition to small businesses losing these customers, employers will be faced with another tough decision. In many small businesses employees are paid based on their skill, position, or time of employment. Many of these workers are paid the minimum wage because employers of a small business are unable to pay them any higher in order to keep their store or shop open. So what happens? Employees that currently being paid $7.25 will now be paid $9.00 and those higher level employees being paid $9.00 would be also given an approximant pay raise to $11.00 per hour. Now, how does this hurt small business owners? Here is a possible scenario. Max is the owner of a small sports shop in Waverly that has been open for ten years...
Words: 866 - Pages: 4
...In today’s society people are having hard times finding a job that will be able to allow them to pay for their houses, rent, and other expenses and this is mainly due to the fact that the minimum wage is just not going to provide enough money month to month in order to pay these things off. In this essay I will be describing why the United States should raise the minimum requirements from their current position. Minimal wage means the lowest amount of money that an employer can pay an employee without it being considered unfair payment. Minimum wage has fluctuated and changed many times in the past 40 years. “The minimum wage was signed into law by President Roosevelt on June 25, 1938 as part of the Fair Labor Standards Act of 1938. The first...
Words: 989 - Pages: 4
...Act(FLSA) which established the U.S. federal minimum wage to be 25 cents. After 49 years, President Bill Clinton proposed a legislation that would allow individual states to set their own minimum wage as they see reasonable. As a result, several states set their minimum wage above what was originally established by the federal government. During that time since the FLSA was passed, the minimum wage was revised every few years to account for inflation and the cost of living which includes several reductions made by Congress. As of 2009, the federal minimum wage became $7.25, although labor activists continue to debate and ask Congress to raise...
Words: 1274 - Pages: 6
