...block Should the Federal Minimum Wage be Increased? In the United States many people struggle in their everyday life to provide for their family. A quick and easy way to solve this problem would be to raise the hourly minimum wage to a higher rate instead of $7.25. Increasing the minimum wage would reduce the amount of poverty that the United States has. Surprisingly, the high school dropout rate has a high correlation with the low national minimum wage. Doing this would also decrease the amount of crimes we have in the US every year. Raising the minimum wage would benefit the United States in many ways. Poverty is a real problem in the US and has been for some time, but by paying our low income families more money per hour this problem could be resolved. “The annual earnings for a full time minimum wage worker is $15,080 at the current federal minimum wage of $7.25.” (what are the annual earnings) $15,080 is hardly enough to support a family and provide nutritional and well balanced meals. In agreement with Mike Konczal, Author of Economist agree: Raising the Minimum Wage Reduces Poverty says, “raising the minimum wage to $10.10 an hour, as many Democrats are proposing in 2014 would reduce the number of people living in poverty by 4.6 million...
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...Why We Should 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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...Raising the minimums raises the maximums Most of our nation’s low-income jobs and positions are not paying like they used to. Is federal minimum wage at an all-time low? Are we not in the greatest country, where American’s who work harder live more wealthily and have more success? The first federal minimum wage legislation was created in 1938, where law stated that workers earned 25 cents an hour. Since then the federal minimum has been revised and increased twenty-two times. The federal minimum wage was ignored from the year 1981 to 1990, and again until in 2007 where wages were raised to $7.25 per hour. Eight years later, the minimum standard remains the same which is an issue for most American’s considered to be middle class today. Actually, today’s minimum wage is lower than any rate during the years between 1956 and 1985. Nearly a quarter of America’s working adults are laboring for wages that do not support families at the minimally acceptable level (Curry). A person working full-time at the federal minimum wage earns $290 in a week, around $15,080 for the year (Gillibrand). With an annual salary of $3000 less than the nation’s poverty level line, an average family of three will struggle to make ends meet. These low-income families will need government assistance, for basic living needs. At this rate of pay, even an average family who has two working/supporting parents will still have financial burdens. They will be considered a poor family, with house-hold income of...
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...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...
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... (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...
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...Fast Food Workers’ Strike Raul Valdez’s section On Thursday September 4th 2014, thousands of fast food restaurant workers walked out of their post and joined a street protest demanding a wage of $15 per hour. Fast food workers in more than 100 cities in the US joined the protest hoping to disturb the fast food chains enough to get their executives’ attention. This protest was part of the movement that was organized by the Service Employees International Union (SEIU). A previous strike was organized on May this year and it took place not only in the US but in at least 33 countries like The UK, Philippines, India, Japan, and Belgium among others. The protests were supposed to be peaceful, but there were some instances of protesters blocking streets. The police had to intervene and at least 430 people were arrested. Kendall Fells, the organizer director of Fast Food Forward organization that helped organize the protest said “There has to be civil disobedience because workers don’t see any other way to get $15 an hour and a union” Protesters were hoping that their absence from work would make these fast food restaurants lose revenue and create chaos forcing executives in these establishments to accept the protesters’ demands. A similar strike took place when the Market Basket workers abandoned their posts when the Market Basket Board of Directors decided to replace their CEO. Although the fast food protest was highly organized and the majority of workers joined, some workers...
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...increasing the federal minimum wage is actually beneficial to our country and its residents. “Minimum wage is defined as the lowest amount that employers can legally pay their workers per hour of labor” (History and Debate of Minimum Wage). Most jurisdictions have laws that enforce a minimum wage; however there are benefits as well as disadvantages to this type of policy. Minimum wage laws were initially established to reduce poverty and are upheld with particular goals in mind. Those who support minimum wage laws generally believe that these objectives are being sufficiently achieved, which is enough jurisdiction to maintain the laws. Those who are opposed the minimum wage laws usually believe that it harms less skilled workers and raises unemployment (History and Debate of Minimum Wage). There are many pros from the side that is in favor of raising the minimum wage. An increase in the minimum wage would create more job opportunities because it would cause minimum wage employees to spend more leading to an increase in earnings among businesses and requiring them to hire more employees to keep up with their increase in sales. Raising the minimum wage would also allow some people who rely on additional support from the government to be able to support themselves better without being as dependent on social programs. This would ultimately lead to lower taxes as well as a reallocation of funds that provide support for other’s needs. An increase in minimum wage would also lead to a...
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...Should minimum wage increase? “The bottom line is that five million low-income Americans working full time for minimum wage, deserve a raise,” says Jim Clyburn. The argument that has continued for years is whether the American federal government should increase the minimum? The two opposing sides on this argument are the Republicans and the Democrats. The Democrats are for minimum wage to increase, unlike the Republicans, who are against it and think of it as a job killer. There are many reasons why the Democrats are for the increase of minimum wage. Currently, there are approximately 3.8 million people who are working at minimum wage or below it. Fewer than one in four minimum wage workers are teenagers and more than half are 25 or older. (Dickinson) If minimum wage were raised to $10.10 it would trim payrolls by less than one-third of one percent, which would help approximately one million Americans out of poverty. It has been proven by the Congressional Budget Office that the raise will not affect the number of jobs as much as people think, and the increase will accomplish more than just harmful situations. There should have been a consistent raise in minimum wage from 1968 to now, but there has not been. The federal government minimum wage should be close to $20 an hour. Tax money could potentially fund less food stamps, welfare, and other financial support for this to occur. A family of four trying to be successful and build their family is living on the earnings of being...
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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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...Poverty is defined as not having enough money to afford basic needs, such as food, shelter and clothing.The United States definition of poverty varies from the number of people in a household. Poverty is an ever present issue that affects millions of Americans today. It is a societal issue often swept under the proverbial mats of our consciousness. That there are people in this great country who work full time and still struggle to support their families is not because of a lack of resources but an unwillingness by the people to promote change. There are numerous things that could be done to combat poverty. Raising the minimum wage is one of them. Further expanding government programs is one. Preventing out of wedlock childbearing is another. There are many reasons people fall into poverty and the solutions to it are as numerous if not more. Why should we care for the poor? Aren't they already getting free handouts from the government? Who cares if a few people go hungry at least they're not settling for cannibalism? These are common remarks made by apathetic Americans who don't understand the gravity of the...
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...people we have a right to receive support from our 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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...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...
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...over minimum wage is a pivotal issue that affects millions of workers and businesses. The minimum wage is the lowest legal compensation that employers can offer to employees, a figure that can influence the quality of life, economic stability, and the purchasing power of a workforce. The passage “The Fight for Fifteen Movement Is a Costly Job Killer” by David W. Kreutzer, explains that increasing the minimum wage to $15 an hour could have negative economic impacts. Kreutzer said higher wages could lead to higher prices and less hiring, hurting businesses and customers. The passage “Minimum Wage Increase Proposal Does Not Go Far Enough” by C. J. Polychroniou, has the opposite opinion. Polychroniou shares that the minimum wage cost has not changed in over 10 years. Not only has the minimum wage not increased in recent years, but the price of living has skyrocketed. As such, discussions around minimum wage often revolve around its impact on poverty reduction, employment rates, economic growth, and the overall fairness in the distribution of wealth. This complex and multifaceted topic invites a closer examination of how changes in minimum wage policy can ripple through society....
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...Outline I. Introduction II. Minimum Wage Defined a. Past Minimum Wage Law b. Considerations III. Increased Minimum Wage and Employment c. Job Losses d. Unskilled Workers IV. Increased Minimum Wage and Poverty V. Increased Minimum Wage and Effects for Society e. Costs of Labor f. Higher Prices g. Individual Impacts VI. Constitutionalism h. Previous Court Rulings i. Free Contract VII. Demotivation Factors j. Education k. Promotions VIII. Minimum Wage Redundancy IX. Conclusion The issue of raising the minimum wage is a highly debated topic. This topic is one that appeals to people from all walks of life. During some time in an individual’s life, he has worked for minimum wage. There will always be the worker who feels he is not paid enough and the boss who feels that the worker’s pay is adequate for the work. “If there were only two economists left in the world, they would disagree about the minimum wage” (Mejeur 14). Minimum wage is basically the minimal amount that an employer can legally pay an employee for work on an hourly basis. Past laws governed that the minimum wage would increase every few years, with the last increase being in 2009 for $7.25 per hour (Funk & Wagnalls 1). Many people feel an increase is long overdue. Those people, however, are not looking at the entire picture. Increasing the minimum wage goes beyond simply giving people more money...
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...Value of Minimum Wage The first attempt to establishing minimum wage was during the Great depression. It failed, due to the Supreme Court striking it down in 1935. Three years later, President Franklin Roosevelt signed the Fair Labor Standards Act, as a result, a minimum hourly wage of 25 cent was inaugurate. Over a century later, Americans are still debating the merits of this fundamental portion of the New Deal. The question is, is it necessary for government to ensure that, low skills worker receive a decent paycheck, or would the economy and low wage earners be better off without government intervention. The logical response is latter, primarily because, the continuity of minimum wage would only raise the unemployment and diminish the employment for low skilled workers. The first argument is, minimum wage will escalate the raise of unemployment rate. –Its basic economics. If the price of labor increase, the demand will plummet. According to James A. Dorn article, Obama Minimum wage hike: A case of zombie economics, “A fundamental law of economics-Law of demand-states that when price of anything increase, the quantity demand will decrease…in the case of labor, this means as the price of labor increase, the number of job will decrease” (Dorn). Dorn statement validates the assertion of unemployment rate escalating while, employment plummet. However, opponents such as President Obama, disregard the law of supply and demand by, proposing to increase the federal minimum wage. During...
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