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Minimum Wage Debate

935 Words4 Pages

The idea of a federal minimum wage was introduced by President Franklin Roosevelt during the Great Depression and was initially set at $0.25 an hour which today would be equivalent to about $4. Since then Congress has increased it 22 times, the most recent one being in 2009 from $6.55 to $7.25 an hour. Each state also is able to higher their minimum wage or price floor to correspond to their cost of living, one of the 29 states that have is California (ProCon). Currently the main debate is to whether or not to raise the federal minimum wage and how it will affect the labor market. Everyone wants to make sure that people working full-time, even at minimum wage, are still able to provide for their families. This decision will affect many aspects …show more content…

In any case, changes in minimum wage at a state level seems like a better way to get the economy to reach its ideal growth. The impact of minimum wage on a labor market is debatable for those on either the left or right of this issue. Those on the left say that a minimum wage is set so that it helps the labor market by reducing employers’ excessive market power, meaning they would not be able to pay unfairly low nor have immobile workers. Those on the right say that labor markets are competitive and a set wage will negatively impact by reducing employment especially those who are unskilled. Either way, a difference in various factors such as a having competitive market or not will change the ultimate result which lead to many economic theories (Tasci). There are many results when increasing the minimum wage, again each depending on various theories and studies. For example, on the left if the wage is …show more content…

I agree with legislatures saying, “low-wage workers need a pay hike from the current $10 hourly minimum to stay out of poverty and keep up with California’s high cost of living” (Calefati). As higher wages are implemented we may see an increase in purchasing power that will hopefully in turn create demand. This could help in balancing the inflation rate as well. Based on the Mercury News article, The President of the California Chamber of Commerce other Assemblywomen agree with my only criticism, that the jump to $15 in 2020 seems too rapid and laws should accommodate the rise of real wage along the way so that we don’t hurt our economy. Minimum wage jobs still belong in California as long as they are adjusted with the local inflation. At the federal level minimum wage should see a slight increase to correspond to inflation like the real value or opt referencing it to a state with a low living wage for basics. If we do not raise minimum wage we do not know if it the economy will regulate itself to keep the gap of wage inequality from growing. Before policymakers consider raising minimum wage they should see where else they can see improvements such as a decrease in government welfare spending. The Center for American Progress reported in 2014 that raising the federal minimum wage by 6% to $10.10

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1094 Words | 5 Pages

First, one main reason that the minimum wage should be raised is because the economy will prosper. “Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period” (ProCon). This quote shows that the economy will flourish from the increase of the minimum wage and that unemployment will decrease. Another quote that shows how raising the minimum wage will affect employment is “To the extent that through these contour effects it affords as much as 70 percent of the workforce greater purchasing power, it effectively increases aggregate demand for goods and services, which should ultimately lead to the creation of more jobs” (Challenger 19). Bryan Covert supports raising the minimum wage by

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733 Words | 3 Pages

The federal minimum wage should be increased because raising it would increase the economic activity and spur job growth, decrease poverty, and also improvements in productivity and economic growth have outpaced increases in the minimum wage. Increases in job growth and economic activity will happen when the minimum wage is elevated. If the minimum wage was increased it will “inject 22.1 billion net into the economy and create about 85,000 new jobs over a three year period”. (“Raising the Federal minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost") Thousands of new jobs will be created and it will put billions of dollars into the economy.

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Some disagree with this and say increasing the minimum wage costs more for the employer and cuts jobs, increases inflation rates, and some even say these employees do not deserve to be paid more. However, minimum should not increase nor stay the same, it should decrease, by doing so would decrease employer costs allowing for more jobs, help reduce prices on goods, and will encourage employees to become more experienced and skillful to increase wage. With the current minimum wage small companies can only hire so many employees before they can no longer afford any more help. If minimum wage was to be decreased then the employee expenses companies pay would decrease.

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I agree that the United States federal minimum wage should be increased to reduce labor turnover, increase consumer activity, and decrease poverty and crime rates. Increasing the federal minimum wage would increase consumer goods activities due to increased pay. According to the U.S. Bank, at

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. . The current value of the minimum wage in real dollars is at its lowest level since February 1956, when the lowest U.S. wage was 75 cents — the equivalent of $7.19 in June 2022 dollars” (Cerullo). The increase in the federal minimum wage and adjusting the price to compare with inflation would ensure that low-wage workers could adopt a standard of living that is equivalent to the current economy. The federal minimum wage should also be increased as it will allow minimum wage workers to afford basic living expenses. Currently, the minimum wage is not enough for people to afford housing and other necessities.

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The minimum wage was initially established to reduce poverty. Instituting a lowest pay level permitted in the United States guarantees that individuals are paid reasonably for their work and protects younger workers and minorities from being paid less than others. The current United States federal minimum wage is $7.25 a hour, and many argue that with increasing living expenses, the federal minimum wage should be raised, however, increasing base salaries can lead to inflation, fewer worker benefits and increased unemployment. Raising the minimum wage may allow employment to decrease across the country and can even result in fewer jobs for Americans. Businesses must pay their minimum wage employees the required pay and if increased, some

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The minimum wage exists in order to set a living standard and to ensure somewhat of a gaurantee of survival in living in the U.S. The current federal minimum wage is currently set as $7.25 and the state of California at $10.50 as of Jan.1 2017. Although the minimum wages has continually been increasing since $0.25 in 1938 during the Great Depression, proponents of organized labor and those in poverty remain persistant on increasing the minimum wage to $15. However, increasing minimum wage would discourage the low-skilled workers to sharpen their aptitude and reach full competence to work in a more skilled workforce. The idea of easily attaining more money for inconsiderable work would only help raise the standard of living, and lower the standard of the economy and productivity as a whole.

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The government should raise the minimum wage in order to benefit the people who are underpaid daily, and raise people’s standards of living. “6.6 million people will benefit from a rise in the minimum wage.” -Russ Carnahan The minimum wage in the United States is $7.25 an hour. Often, that can be enough to provide for a lower class family, but often not.

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1711 Words | 7 Pages

The topic of minimum wage has been debated for many years. Merriam-Webster defines minimum wage as "a wage fixed by legal authority or by contract as the least that may be paid either to employed persons generally or to a particular category of employed persons. " people are usually either for or against the raise of minimum wage, with their own beliefs at the core of why they want to raise it or keep it the same. Some advocates for the raise in minimum wage to a living wage say that it will be beneficial to all the citizens of the united states, while others say that if we do raise it to a living wage it will collapse our economy.while we do see evidence for both sides we have to decide what is the best for the betterment of the american people.

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Since the Great Depression, there has been a minimum wage in America, but this minimum wage has changed 22 times since the Great Deprnbession. Many people say minimum wage should stay at $7.25 like it has been since 2009. Meanwhile, other people believe that minimum wage should be $15.00 so they can have more money to live comfortably. People think that a higher minimum wage will help, but it will hurt more people than it will help. If America makes the minimum wage $9.00, people will no longer be in poverty and it will make the economy balance out.

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Minimum wage has been a very important topic in politics, especially raising minimum wage. Many politicians talk about how raising minimum wage can be detrimental but only view raising minimum wage from a political viewpoint, often forgoing the economical benefits of a higher minimum wage. As the economy has grown since the last economic recession in 2008, the minimum wage should have increased along with it. Instead because of political issues between people against and for raising minimum wage, the minimum wage has stayed the same in most parts of the United States or has only gone up slightly. A raise in minimum wage is beneficial to the economy and is necessary for the economy to continue to grow.

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Persuasive Essay On Minimum Wage

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By the year 2021 California will have minimum wage of fifteen dollars an hour. Lawmakers, Gov. Jerry Brown and labor unions signed a law in California that will start incremental increases to the state's minimum wage starting Jan. 1, 2017. Should the rest of the country follow in California’s footsteps? If the government increases the federal minimum wage it would, overall, hurt the nation. With a fifteen dollar minimum wage unemployment would increase as well as a higher pticed market.

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777 Words | 4 Pages

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607 Words | 3 Pages

There are a lot of potential benefits for an increase in minimum wage and on the surface it’s hard to see why you wouldn’t want to increase the wage. One of the clearest to see is that an increase to the minimum wage will also increase the spending for each household during the following years. So it works to help stimulate the economy in whatever area you increase the minimum wage. Along those same lines increasing the minimum wage will lead to a decrease in poverty as well. With the decrease in poverty you will also see a decrease in government spending on welfare items because the individuals receiving the higher wage in theory will be able to pay for these services/welfare items without assistance.

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