...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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...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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...Minimum wage has been a problem in many states simply because people believe that their pay isn’t enough and should be raised to support themselves and others. But why should minimum wage be raised? I believe otherwise because the US raising minimum wage can cause problems for us, don’t you think? I believe minimum wage shouldn’t be raised. I believe that raising minimum wage can destroy businesses. The government raising minimum wage can destroy those small companies that already cannot afford to pay their employees more than the minimum wage. No company would want to lose their business because they are trying to pay employees more when they know they can’t afford it. If a person really thinks about it they will be able to see that if businesses did start to pay more than the minimum wage many people can lose their jobs. In the article, For the first time, majority of states have minimum wage above federal level, Charlene Conway a co-owner of the Carousel Family Fun Center will have to lay off staff members to be able to pay more money to the employee’s “ She might have to layoff several members of her 40 person staff and totally eliminate the younger workforce”...
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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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...Minimum wage is one of the number one issues in America. There are debates on whether minimum wage needs a raise or stay the same. The current minimum wage in California is $10.50 per hour. Most people that work under minimum wage work more than 60 hours a week. Those people that work under minimum wage are most likely to live in poverty. People can not earn a living on minimum wage. This is why minimum wage needs to be raised. One reason minimum wage needs a raise is because it leads to a healthier population and less premature deaths. Over the past few years, fast food prices drop while the healthier food prices increase. The author states that in “many poverty-dense regions, people are unable to access affordable healthy food, even when...
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...government should raise minimum wage. Raising minimum wage will help the economy and help people buy what they need to live a comfortable life. Raising minimum wage would be very beneficial to our economy. Raising the wage would not only help people by putting more money in their pockets but those people would also buy more goods which would put money back into our economy. Let’s face it, the cost of living has gone up significantly in the last decade or so. People need more money in order to live a comfortable life. People need money to be able to afford vital things such as food, transportation, education, healthcare, life insurance, etc. “Even if one can work full-time, after state and federal taxes and Social Security and Medicare deductions, one is lucky to retain $225 a week or $12,000 a year, which is precisely the threshold of poverty for a single person (Komlos, “Column: Why”).” If...
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...Minimum wage in California is predicted to increase up to $15.00 an hour by the year 2023. Most people fighting for an increase in minimum wage are restaurant workers, especially in the fast food industry, dissatisfied with the current minimum wage of about $10.00. Economists, on the other hand, oppose raising the minimum wage for numerous reasons, such as an increase in unemployment, the effects it has on minors, the effects of the free market, and the “-ism”’s that increase. The largest and most often point argued by economists that oppose raising minimum wage is that it increases unemployment. Statistics show that “...in 2013, a $1 increase in the minimum wage was associated with a 1.48 percentage point increase in the unemployment rate…”...
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...The national average for the minimum wage in the United States is $7.25 per hour. This is the lowest amount that an employer can compensate its workers legally. Basically it is the lowest wage that a worker can sell their labor at. The federal minimum wage should be raised for two reasons, it keeps up with rising living costs, and it boosts the economy. But on the other side the opponents will say it increases poverty and unemployment. The first reason that the federal minimum wage should be increased is because of the rising cost of living. Raising the national living wage will allow workers to better support their families and keep up with the economy. The last time congress raised the national average of pay was seven years ago. Since that time, the cost of living has dramatically shot up. According to an article on USA Today’s website, groceries cost 20% more, a gallon of gas costs 25% more, and average tuition at a community college increased 44%, if...
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...has voted to raise the minimum wage to $15.00 an hour to provide people working in retail and other industries with salaries that can raise them above the poverty line. This is great for employees who have long struggled to make ends meet. Some, though—like the Ontario Chamber of Commerce—are claiming such an increase will “ruin” businesses. Though unlikely, the question does remain: What effect will a minimum wage increase have on retailers and their bottom lines? While you prepare your business by finding automation solutions to decrease overhead costs, here are some likely possibilities for how the wage increase will affect retailers. The Cost of Living Some debate rages on whether retailers will have to downsize staff or raise prices in order to manage the increase in staff wages. Some believe that a minimum wage increase will force up the cost of products across the board, affecting retail businesses on a razor’s edge, thus raising the cost of living and negating the wage increase in the first place. The truth remains that if people cannot afford the cost of living, then they certainly will not be able to afford new products. Though the immediate cost is bound to be jarring, retailers will likely be able to find a balance that will, in the long run, be beneficial to their employees and show a good will...
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...The history of minimum wage dates back to 1938, during the Great Depression, where it was set to $0.25 per hour (“Background of the Issue”). Ever since then, Congress has increased this rate 22 times. The most recent change occured in 2009 where the minimum wage was set to $7.25 per hour. Currently there are 29 out of 50 states who have altered and increased their minimum wage higher than the federal minimum wage (“Background of the Issue”). Undeniably, this generates much controversy regarding those in favor and against raising the minimum wage. Is it enough money to make a substantial living? Through some research we will try to identify which arguments are the strongest. Raising the minimum wage has many benefits for the economy and its citizens in our opinion. The most...
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...Raise the Minimum Wage Imagine working full time, but you can’t still make enough money to support your family. That's what millions of Americans who work on minimum wage experience. Minimum wage should be raised because it would reduce government welfare spending and poverty rates. According to Fletcher, raising minimum wage “would reduce federal food stamp spending by $4.6 billion a year” ( Fletcher 1). This increase in minimum wage allows the government to free up an astonishing amount of funds that they can end up spending on our military, education, and so much more. Imagine what we could do if we spent the money on developing cures and furthering our space exploration. The welfare spending could end up going to education which in return leads to more students getting degrees which leads to better jobs and even less spending on food stamps. It becomes a cycle to where the more people the...
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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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...This essay will talk about the minimum wage laws, I have read a few articles and must decide based on these articles what is best for the economy to raise minimum wage laws or lower them. There have been multiple debates on the minimum wage law debut. Both have good arguments but, based on these articles we read and analyzed I believe we should not endorse new minimum wage laws because the unemployment rate would rise, the demand for things in the world will go down because they are so expensive, and it would also eliminate jobs at the bottom of the ladder who are inexperienced. It will cause unemployment because when you start to raise the minimum wage laws you are paying your workers more even if some are doing more or have a better past...
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...Federal Minimum Wage Proposal Research Essay MDH-ECO210 President Obama has proposed to increase the Federal Minimum Wage to $10.10 as well as increase the Earned Income Tax Credit among other items associated with this. There are those who oppose the increase to Federal Minimum Wage as well as those who support this proposal. What we have to question when looking at this increase is whether or not it will actually help the economy or if it will simply raise costs of everything we buy on a daily basis. It is necessary that “businesses need to have money available to pay for labor, materials, power, and other inputs” (McConnell, Brue, Flynn, 315). It is debated if raising minimum wage will stifle these businesses, by increasing their pay rate for labor. There are many factors to consider when looking at this proposal that has a multitude of pros and cons. If this constant debate continues as it has in the previous instances then the typical result will be that most Republicans will oppose the proposal while the majority of Democrats will be in favor of passing the bill. President Obama is quoted as saying in his State of the Union address that “in the wealthiest nation on Earth, no one who works full time should have to live in poverty” (Hassett, Strain, 2013). The case that is made against raising the minimum wage is very simple; by raising the minimum wage it makes it more expensive for businesses to hire employees. Those who retain their jobs will make more money;...
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...Argumentative Essay: Is it really worth it? LABR 1F90 Haseeb Mohammad 5591979 T.A – Nathan Cecckin March 25, 2016 “I do not support raising the minimum wage, and the reason is as follows. When the minimum wage is raised, workers are priced out of the market. That is the economic reality that seems, at least so far, to be missing from this discussion.” as John Sununu states, raising minimum wage is not a great decision. The minimum wage rate must not increase for the reason that this will put many firms out of business, and will also lower the employment rate. Assuming firms are employing resources at maximum efficiency, increasing the labor wages will cause immense damage. An increase in minimum wage will not help our economic system become efficient; in order to allow our economy to run smoothly there mustn’t be an increase in labor wages. Increasing wage rates will increase the unemployment rate resulting in an increase in inflation allowing an increase in poverty, increasing the minimum wage rate will also increase the expenses for businesses, and lastly it will also affect a majority of high school students. If the industries suppliers’ prices increase along with the wages many industries will start to go bankrupt because of the decrease in demand for the industries’ products, resulting in a decrease of employment for low skilled workers, or young people just as Niels Veldhuis & Sylvia LeRoy explain in their academic journal, “Specifically, he concluded...
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