...The minimum wage rate is introduced in this essay, with the perspectives of weighing the benefits with that of the costs of the national minimum wage. The essay goes about discovering what exactly is minimum wage and how it impacts the economy. Moreover, the advantages are compared against the disadvantages of the minimum wage rate. Furthermore, it also covers the detailed consequences of increased minimum wage after a research on what economists have surveyed about the recent increase in the minimum wage. Thus, this essay has thoroughly evaluated the pros and cons of implying with the law to allow for national minimum wage in the labor market. The minimum wage act was created in the 1938T as Fair Labor Standards Act, which makes it legally compulsory for the employers to pay their employees for the period of time worked. The minimum wage could be defined as the “minimum rate of remuneration that is must to be paid to a wage employees for the work they have done over a period of time, which cannot be neglected or reduced by individual contract and collective agreement”. The eligibility of minimum wage is that it is allotted to workers who are below 20 years old, for long as the probationary period lasts that is for almost 3 months. The minimum wage rate...
Words: 1311 - Pages: 6
...Bill H.R. 2150- Raise the Wage Act Bill H.R. 2150 should be passed, because US citizens getting paid minimum wage which is currently $7.25 (federally) and are not being paid nearly enough to even pay their house payment or rent each month. Even if an average minimum wage worker at $7.25 worked 40 hours a week for four weeks each month they would only be making 1,160 before taxes after taxes that’s hardly enough for car insurance, food, and clothes. If that worker has kids and they don’t even have enough for themselves how is life in the US even a reality? In 1938, the government established the Fair Labor Standards Act (FLSA). The FLSA was intended to establish a minimum wage across the states as well as overtime pay eligibility, and child labor standards. The Raise the Wage Act otherwise known as H.R. 2150 ammends the FLSA to raise minimum wage to $8.00 on January 1st, 2016 and additional raise of a dollar after each year....
Words: 534 - Pages: 3
...In today’s society, many political leaders debate about whether raising minimum wage would help or harm both our economy and our United States working class earning minimum wage. I feel that our country should not raise its minimum wage, for while it may help those that keep their minimum wage jobs, it would make the laid off and fired workers suffer. Many businesses would not be able to afford paying their current number of employees, meaning that there would be less job opportunities, and unemployment would increase. Also, with fewer job openings earning minimum wage, overqualified individuals would take a majority of the job positions, leaving fewer opportunities for less experienced workers to learn necessary life skills. Raising minimum wage is not a smart move for the federal government to make, because businesses have strict budgets that they must follow. We must remember that just because the minimum wage can be freely altered by the government, does not necessarily mean that businesses will magically have more money in their budgets to distribute to their employees. Instead,...
Words: 601 - Pages: 3
...Higher minimum wages are attractive and seem to be a socially responsible thing to do for the welfare of the workers. Unfortunately, according to research, unintended outcomes after the fact have resulted in negative outcomes. In my opinion, when I look at the general bird’s eye view, the negative effects are as a result of an uneven application of the rise in minimum wage giving other opportunistic players a chance to maneuver and cheat the system. Let us look at the effects on various stakeholders; On Workers A raise in minimum wage gives more purchasing power to more workers resulting to a raised standard of living. It is however urged that once the employers raise wages, their production costs go up resulting into higher prices of goods and products. As reported by Forbes, San Diego changed its minimum wage from $10 to $11.50 and saw a loss of as many as...
Words: 617 - Pages: 3
...Raising minimum wage would change the way people live. The increase would make living conditions better for people who don't have good ones. People also wouldn't have to struggle to provide for their families and for themselves. The increase would help people enjoy life. Although increasing minimum wage could help people provide for their family, it could also cause many people to lose their jobs. Increasing minimum wage would help people live is. People also wouldn't have to struggle to provide for their families and for themselves. The increase in minimum wage would help people enjoy life. Although raising minimum wage would hen better conditions. The article" The Pros and Cons of Raising Minimum Wage" says that," Increasing minimum wage raises the standard living for impoverished people." This means that people wouldn’t have to worry about getting a job, or worrying about if they have enough money to put food on the table. People would worry less if the minimum wage was raised. To...
Words: 499 - Pages: 2
...According to “ The Pros & Cons of Raising Minimum Wage”, minimum wage has only been raised three times within the last 30 years. To make up for the inflation that has gone on the government should increase the minimum wage. While prices may increase in the economy, increasing the minimum wage will bring forth a more successful economy because of the inflation, the decrease in the turnover rate and there being more opportunities for available jobs and better living for those included under the poverty threshold. First, increasing minimum wage will bring forth a more successful economy by helping make up for the inflation in the economy we have today. Sources say that President Barack Obama wants to increase the minimum...
Words: 808 - Pages: 4
...Cannot ignore the issue of humane working conditions • Wage gap, class issues, race issues, gender issues will inevitably be brought up • Government vs private institutions Pros Raising the minimum wage would increase economic activity and spur job growth Increasing minimum wage would reduce poverty Cons Increasing minimum wage would force businesses to lay off employees and raise unemployment levels Would increase poverty Higher minimum wage would reduce government welfare spending Would hurt businesses and force companies to close The minimum wage has not kept up with inflation Would increase price of consumer goods Improvements in productivity and economic growth have outpaced increases in minimum wage Teenagers and young adults may be shut out of the workforce if minimum wage is increased Increasing minimum wage would reduce income inequality Would disadvantage low-skilled workers Minimum wage increase would help to reduce race and gender inequality...
Words: 939 - Pages: 4
...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
...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...
Words: 1422 - Pages: 6
...Effects of Minimum Wage in Our Economy Barbara Munoz Microeconomics Dr. Pieper Kaplan University Upon receiving a paycheck, many feel it is simply not enough. On the other hand, employers may disagree. Minimum wage is the least amount of money an employer can pay their employees. Some argue that this said wage is not enough for average living expenses, while others feel that those who get paid minimum wage are paid what they are entitled to. Currently, the controversy is mainly regarding whether or not the federal minimum wage should be raised. An increase in the minimum wage raises the standard of living for impoverished workers. Nonetheless, this may have an adverse reaction in the economy. Minimum wage has not been changed since the last time in 2009, it was raised to $7.25. Ever since then, “the federal minimum has lost about 5.8% of its purchasing power to inflation.”(Pewresearch.org). It is eye opening to realize that inflation goes up every year, yet minimum wage has only been raised three times in the last three dacades! Since the buying power of the dollar bill has decreased, it is harder for families that earn minimum wage to survive. Even though their money is worth significantly less, they still need to pay the same or increased prices for groceries, utilities, and rent. On the other hand increasing the minimum wage could have a negative effect on economy as well. The current plan is to try to increase the amount gradually to $10.10 by 2016. The projected...
Words: 820 - Pages: 4
...According to Webster's Dictionary The definition of minimum wage is “the lowest wage paid or permitted to be paid” (“Minimum Wage”). The big question is, should minimum wage be raised? Over the years there have been many protests in Wisconsin because of people thinking that they deserve a higher pay rate. I strongly disagree with this controversial topic of raising minimum wage because it will cause more job layoffs and cut benefits, small businesses can’t afford it, and it will reduce the worker's motivation to get a higher education. $0.25 an hour was the first federal minimum wage in the 1930’s (“Why We Should Not Raise the Minimum Wage”). Although the minimum wage has raised to $7.25 per hour since then, many people still believe it is still not high enough....
Words: 846 - Pages: 4
...The debate whether minimum wage should be lowered or increased has been a very contested topic for many years. There two sides to this topic and both have a side to be discussed and agree with and disagree. Even tho everyone believe it should be raise there is also another side and should be lowered. Lowering minimum wage sounds pretty harsh but also has its pros and cons. Everyone can have there own opinion and lowering minimum wage is mine. Lowering minimum wage has its reason like if they do reduce it many jobs will be available and hiring workers and likely not outbalance individuals that are making less money. Also, companies that minimize jobs when minimum wage increases, then there is no benefits to hiring more people to work for them, unless they occupy more workers. If minimum wage is lowered it will help people for example it would lower prices and things will be cheaper. If it is lowered it will allow businesses, mostly smaller business to survive during difficult economic problems. Then it will not affect lower class human race to a greater level. Even if they to raise or lower it i think people should still focus on the fact that looking for a job at least and not doing anything but complaining helps. Just like lowering minimum wage has its reason so does raising the minimum wage would also help economy. I support the fact...
Words: 492 - Pages: 2
...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
...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...
Words: 1107 - Pages: 5
...Discuss the pros and cons of raising the minimum wage. Give your opinion, experiences and real life examples. Also discuss the complicated relationship between cities, states and the federal government. Raising minimum wage has been a popular topic since the 2014 State of the Union Address announced by our President. His desire is to increase minimum wage by over 40%, which is $7.25/hour to $10.10/hour. While the president and his supporters claim it to be beneficial, opposes predict over 500,000 jobs will be lost. Pro: Economic Incentive (raising the minimum wages means more money to expand resulting in more money flowing through the economy by individuals spending more), Increase in Job Opportunities (earning more money leads to spending more money. Businesses will need to hire more employees to keep up rising sales), Reduced Expenses for Social Program (employees who re earning more money will be able to support themselves better without depending in social programs which would result in lower taxes), Turnover Rate would Decrease (with a higher minimum wage, employees may feel more comfortable and satisfied in their jobs, they are less likely to leave. Lower turnover rate means fewer hires which means less training expenses), and Inflation (this would account for inflation, which rises every year. Minimum wage has only increased 3 times in the past 30 years). Cons: Layoffs (some companies may no longer be able to support the number of employees they currently hold. While...
Words: 480 - Pages: 2
