Analyze Changes of the Federal Minimum Wage The federal minimum wage establishes the minimum remuneration that an employer in the US can give to an employee. Set by the Federal Reserve, it is applicable throughout the nation; however, each state is free to set its own. Some states have a higher minimum wage than the federal standard and others had set a lower rate but are required by law to adhere to the federal's minimum. Importantly, the minimum wage set by the Federal Reserve protects workers from exploitation by ensuring that they get their deserved pay the work that they do for an employee. Considering its role in setting remuneration standards, the minimum wage affects other factors of employment such as the availability of jobs and the citizens' purchasing ability. Therefore, it causes a decrease in employment to some extent and enhances the household, individual, and family income. The primary role of the federal minimum wage is to ensure that workers are not underpaid and that they are not exploited by their employees (Manzo, & Bruno, 2014). Actually, the determination of the …show more content…
Although examinations of previous adjustments have not revealed a remarkable impact on employment, experts agree that some level of increasing could hamper the employer’s ability to pay consequently leading to a reduction in employment (Manzo, & Bruno, 2014, p. 3; Gibson, 2016). Logically, the minimum wage dictates the minim price that a worker could ‘sell’ his/her services to an employer. In this regard, the employer becomes the purchaser and the job seeker becomes the seller of services. Where the price of the seller is too high for the buyer, then the buyer may desist from purchasing. In this case, the job seeker will not be hired by the employer, which would result in the loss of a job opportunity and poverty for families, individuals, and