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Minimum Wage In America

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those who are responsible for the poverty many Americans live. The government must determine how much to increase the minimum wage; if they decide to increase it at all. Leading the struggle for increased minimum wages are the fast food workers of America, each with their own personal stories of struggle and reasons they must depend on a food service job, paying these meager wages, to provide for their family. As David Neumark states, “Since its enactment, there has been widespread debate about the merits of minimum wage laws, along with numerous efforts to evaluate their economic effects” (55). I seek to show the value of a significant minimum wage increase and the effects it will have, not only on fast food worker’s lives, but the good it could have on the US economy. Although there are those out there that would argue that the minimum wage increase would cause more damage to our economy; I believe …show more content…

And on April 1, 1991, the minimum wage hit an all-time high of $4.25 an hour as explained by Lawrence Katz (6). In his findings regarding his article, Lawrence Katz states that "the evidence on employment and price changes does not seem consistent with a conventional view of the effects of increases in a binding minimum wage” (20). By this, Katz is trying to state that even though the minimum wage increased in the early 1990s, the increase had an adverse effect in which employment to the fast food industry increased in Texas, where he conducted his research. He also concluded that the changing in prices in the businesses he researched were not directly associated the minimum wage increase. Looking back at this research, it seems as though the constant increases in the minimum wage shows how strong our economy has become. I believe that the current minimum wage of $7.25 an hour for the past 7 years with no increase has had a negative effect on the workers in the fast food

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In the article A Capitalist’s Case for a $15 Minimum Wage, the author Nicolas Hanauer urges for a raise in the nation’s minimum wage. Hanauer is a founder of Second Avenue Partners, a company focused on startup and emerging technologies. He also plays a major role in the founding of a dozen big name companies. As an entrepreneur, Hanauer has thoroughly analyzed the benefits raising the minimum raise would have on citizens, and especially on businesses. In his central argument for this change is that it will repair the economic cycle.

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477 Words | 2 Pages

In his article “Elitist Arrogance,” Walter Williams discusses the effects that setting the minimum wage at fifteen dollars an hour would have on African American and low-skill workers. He states that during the 40s and 50s, more African American teens were active in the labor market and employed than white teens. Today, however, more white teens are employed and active in the labor market than black teens, and Walter believes that this is because higher minimum wages have caused companies to discriminate against low-skill workers, which is largely represented by African American teens. Minimum wage is a good policy that the Department of Labor has every right to enforce in every state. Setting a minimum wage attempts to assure that citizens will not be totally taken advantage of in the workforce.

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This set in motion a sequence of raises in the minimum wage from $5.15 an hour to $5.85 to $6.55 and a final raise in 2009 to $7.25 an hour (“History of Changes to the Minimum Wage Law”). In their article, Quinn, et al, point out that since 2009, the cost of living has gone up significantly. They report high percentage increases for everyday necessities, such as the twenty percent increase in groceries and the twenty-five percent increase in a gallon of gas. These

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734 Words | 3 Pages

This is an article on Forbes by Bill Phelps, the Co-Founder and CEO at Wetzel's Pretzels, a fast food chain that has more than 300 locations in 28 states and 6 countries. Using his personal experience, he observes that when the minimum wage in California raised from $8 to $9 and from $9 to $10 “our same-store sales doubled.” According to Phelps, “low-income workers throughout the state have more disposable income to spend.” He ends by quoting that the unemployment rate decreased after the minimum wage increased. Although the writer credits the unemployment rate decrease mainly to minimum wage increase without giving evidence, this article can still serve as a source for the counter argument that a minimum wage increase is beneficial for both business and worker.

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733 Words | 3 Pages

A minimum wage increase from “$7.25 to $10.10 would result in a loss of 500,000 jobs”. ("The Effects of Minimum-Wage Increase on Employment and Family Income”) This claim is better because it shows how raising the minimum wage will decrease job growth instead of increasing it. But, the minimum wage should be increased because increasing will also increase economic activity and spur job growth, decrease poverty, and improvements in productivity and economic growth have outpaced increases in the minimum

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Since the election and reelection of President Barack Obama the increase in minimum wage has been a major topic for the United States. His proposal to increase minimum wage has sparked a lot of controversy with some Americans. Many believing that increasing minimum wage will have a negative impact on our economy and even our educational system. They argue that increasing minimum wages will harm the very people it was intended to help because it will increase housing cost as well as the price of consumer goods. They argue that it will decrease the high school enrollment rates at the same time increase dropout rates.

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1068 Words | 5 Pages

Introduction A crucial component of American labor policy has been the minimum wage for nearly eight decades (Maverick, 2024). Throughout its history, the economic consequences of this have generated enthusiastic discussions. In this essay, I aim to examine the complex economic effects of the minimum wage in the United States, while weighing its benefits and drawbacks. This essay tries to look at the subtle differences between the arguments on both sides of the issue, which is something that should be acknowledged. Historical Content Political conflicts and labor movements have influenced the federal minimum

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“How does minimum wage affect a society” Minimum wage has been a topic of debate for many years. Some argue that it should be increased to help workers earn a living wage, while others believe that it will raise prices for consumers. With the cost of living increasing, many people are struggling to make ends meet on today's minimum wage. In this essay, I will provide information about the history of minimum wage, its current state, the implications of minimum wage policies, and their impact on society. Andrew Carnegie co-founded his first steel company in the early 1870s in the Pittsburgh area.

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The lack of change for 15 years for the federal minimum wage is a major issue in today's economy. Despite the fact that some states have taken measures to raise the minimum wage. However, several states remain with the same minimum wage and millions of hardworking Americans are still unable to handle the rising cost of living. The unwillingness to raise the minimum wage to reflect inflation and growing living costs has resulted in significant economic inequality, putting many low-income workers at a disadvantage. The minimum wage should not be raised based solely on hourly reductions; it is to ensure that every worker receives a livable wage.

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In today’s society, it seems imperative to have an ensured income in order for members of a society to take care of those that depend on them. While raising the minimum wage may be the most potent means to this end, it is also the solution that brings the most long term problems. However, this has not stopped the policy from being tested in cities such as St. Louise and Seattle. While both had subtly different in both cities affects the broad end result: the policy was cancelled after a loss the employer’s money was apparent. These results prove that minimum wage would be inadvisable due to a loss to the workforce population, paradoxical effects, and the potential for a loss of money if an increased minimum wage is enforced.

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356 Words | 2 Pages

In the US there has been a movement to raise the federal minimum wage, which has been $7.25 per hour since 2009. A goal within this movement is to raise the federal minimum to $15 an hour. This would be a 107% increase over the $7.25 minimum wage. The question is if it is possible to expect that the minimum wage could be raised to $15 per hour without making a massive negative effect, to be more specific affecting the U.S. fast-food industry. The fast-food industry is a great discussion to look at.

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1125 Words | 5 Pages

In today’s society, minimum wage work are usually entry level, and require little to no skills. Many of these earners require governmental assistance to take care of themselves and their family. Many people believe that the minimum wage of working a full time job should be enough to cover the cost of living. Raising minimum wage will help these workers in specific situations, but it also causes major issues in the

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1946 Words | 8 Pages

Minimum wage has always been a controversial issue among policy makers and economists in the United States. Recently, the topic has become an increasingly hot debate whether it should be raised to help the minimum wage earners in America to make ends meet. The Seattle City Council has voted to gradually raise the minimum wage to a nation’s highest at $15 per hour starting from January 1, 2015(www.usatoday.com). While the state of Washington already has the highest minimum wage among other states at $9.32/hour, and the average inflation rate in the United States in the last five years was 11%(www.bls.gov), it is very hard to comprehend why such move was taken by the Seattle City Council to raise the minimum wage by more than 63%. It is believed

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1355 Words | 6 Pages

The committees of New York and California concluded that a fifteen dollar minimum wage is estimated to increase the income of minimum wage workers by one third percent in each state. Many large business owners say that this will greatly impact the productivity and growth of their companie in a positive way. They say that there will be more income coming in along with quality consumer products going out at a much faster rate than ever before. The scattered opinions on minimum wage are far and near ,but they can not argue with the future and prospering of the average worker along with the

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64 Words | 1 Pages

Around 60 percent of workers benefiting from a higher minimum wage are women. Less than 20 percent are teenagers. Also, those workers who would benefit from an increase in the minimum wage brought home 46 percent of their household’s total wage and salary income in 2011. These factors show that raising the minimum wage directly helps parents make ends meet and support their

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