...According to my research, there are quite a few positive reasons why Congress should increase minimum wage that I personally agree with. Raising the minimum wage could be used as a solution tool for some economic issues. This includes an issue such as reducing the poverty rate by increasing income for minimum wage workers. Understanding that inflation occur once minimum is raised makes sense why after years of not having a minimum wage increase is affective over time. Since when minimum wage had started to be consistent, it has been generally increased to improve the economy from the conditions it was in at the time. Now I understand that just because businesses and government prices continue to increase, does not give Congress an absolute...
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...raise the minimum wage to 15 dollars national wide without even think of how it is going to affect the economy as well as the citizens of this country. Raising the minimum wage to 15 dollars national wide will lead to a disaster. According to Douglas Holtz- Eakin, raising the minimum wage will hurt the poor citizens more than people think it would help them (Holtz-Eakin, 2015). As it is obvious, the cost of living is different in every states. Therefore, raising the minimum wages to 15 dollars national wide will be such disadvantage for many states in this country. For instance, New York, the minimum wage...
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...Raising the federal minimum wage has become more of a consistently pressing issue in the United States since President Obama spoke of the matter during his 2014 State of the Union Address, where he stated that he intended on raising the minimum wage by 40%, from $7.25 to $10.10 an hour. While he and his supporters argue that this would work most beneficially for America’s economy and would not result in any loss of jobs for citizens, others argue that, on the contrary, this would drastically affect current minimum wage earning employees and would also cut almost 500,000 jobs on top of other detrimental consequences. While both sides consider legitimate concerns, the argument still remains on if the risk is worth an unknown outcome. Presently,...
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...There are studies out there that show raising minimum wage will barely, if at all, decrease unemployment but those studies all have common flaws; those studies do not measure the effects long term, and they do not measure if there is a decrease in hiring and labor hours. If minimum wage is nearly doubled, then businesses will need to cut back somewhere and the easiest thing to cut back on is labor hours. Businesses will hire fewer people, expect twice as much out of their current employees, and cut the hours their business is open. If an employer has a tight compensation budget, then when the minimum wage is raised they will have to lay people off to stay within their budget. The Huffington Post states that many CEO’s of large corporations...
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...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...
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...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...
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...federal minimum wage. Minimum wage is the amount of money an employer can legally pay an employee per hour. It makes sure workers are compensated fairly and protected from exploitation. Each state minimum varies in amount; however, the federal minimum currently sets at $7.25 per hour (Chang 12). Increasing the minimum wage would help workers and families without harming the business economy....
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...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...
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...Recession, seven to eight years ago, about 8.4 million jobs were lost and 14.3% of Americans were living in poverty. Several years later, the government is still trying to get the Economy back on its feet. Democrats say that raising the minimum wage will increase earnings for millions of workers leading to cash flow which will stimulate the economy. Republicans say that although increasing the minimum wage would help many Americans by increasing their earnings, many Americans would also experience job loss. Increasing the minimum wage would help the economy greatly but could also hurt many of the low-income families. Rex Huppke of the Chicago Tribune, brings up a great point stating that raising the minimum wage is not an effective way to address the poverty issue America faces. When raising the minimum wage, not only will the families living in low-income housing be affected, but also young adults with their first jobs and teenagers working after school. This is a concern because these students aren’t the ones who need the help; it is the families with 5 children who...
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...The Effectiveness of Raising Minimum Wage Since minimum wage has come into existence, raising the wage has become a heated topic for debate. President Obama said it best in his “State of the Union Address” in 2014. He said, “In the wealthiest nation on earth, no one who works full-time should have to live in poverty.” Yes, the current rate of $7.25 an hour averages out to about 14,000 dollars a year, which falls short of the poverty guideline of 17,000 per year. Therefore, I believe that minimum wage should be raised to deliver people out of poverty and restore their dignity, to boost the economy, and to provide for a better education. Minimum wage has been kept to $7.25 per hour for the last 8 years because the federal...
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...government, we have been living in poverty while the government refuses to take action and raise the minimum wage. Three billion of the world’s population live on less than $2.50 a day (DoSomething.org). That’s enough money to buy only one box of cereal. What comes to mind when you think of a decent lifestyle? Having a family, going to school, food to eat and a place to call home? This isn’t the case for many families and children in our country. Reporters say that 44% of U.S. children live in low-income families (The Washington Post.com). Our country is currently oblivious to the fact that because these families are living in poverty, parents can’t provide decent shelters, education for the children or even food to put on the table....
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...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...
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...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...
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...Minimum wage The Fair Labor Standards Act (FLSA) of 1938 established the minimum wage, overtime pay, record keeping and child labor standards (Minimum Wage - Wage and Hour Division (WHD). For the purpose of this assignment, the primary focus will be on minimum wage. The minimum wage is a price floor set at a minimum price for labor per hour. The intention for minimum wage is to help alleviate poverty, workers are guaranteed hourly pay, protection of minimum living standards, and employee labor wage equality. Currently, the federal minimum wage is $7.25 and has been in effective since July 24, 2009. Although many states have their own minimum wage laws, which may be above the federal minimum wage, states must comply with both state...
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...This topic might be one of the biggest topics in our time. Raising the minimum wage, certain people think it's a bad thing but other people think differently stating that minimum wage is good. It helps the government in saving money. Giving hard working workers the money they deserve. Raising the minimum wage helps the government. It means that people will get off food stamps. Saving the government's money, and also that they don't have to be buying people's food. Saves the government about $46 billion over 10 years spending it on Supplementary Nutrition Association Program. It just saves the government by a lot. Raising the minimum is good for families. Raising the minimum means the incomes of 28 million americans would raise, and it benefits...
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