ipl-logo

Should Minimum Wage Be Abolished Essay

570 Words3 Pages

Almost everyone will have to work at some point in their lives or at least live in a household where other members work as a way to afford basic living standards. That implicitly, or even explicitly, accounts receiving wages and attempting to make a living, which includes paying bills, buying food and paying for education, for example. The Federal Minimum Wage came in to existence in 1938 as President Roosevelt signed the Fair Labor Standards Act. The main purpose of this Act was to protect workers from the limited wages and long work journeys, especially during the Great Depression. Therefore, this resulted in the restriction of child labor, the minimum hourly wage at the time was set to 25 cents and the maximum workweek was set at 44 hours (Department of Labor). Over the …show more content…

This shows that unlike many may think, raising the minimum wage would not be harmful to the US economy. It is natural that as workers earn higher wages, they are more likely to spend as consumers, consequently increasing demand and allowing the economy to flow. People also often make the assumption that a higher wage would provoke higher unemployment rates, however research finds that raising the minimum wage does not result in job losses, “even during periods when the unemployment rate is high.” In addition, most of the states noticed a slight decrease in their unemployment rate a year after the raise in minimum wage (American Progress Action). An article from the Federal Reserve Bank of Chicago claims that if the federal rate was to increase by $1.25, it would aggregate household spending by $48 billion as well as increase the level of GDP by up to 0.3 percent (Chicago Fed). Thus, it is clear that a higher income due to an increase in the minimum wage would not have significant effects on employment, that being job

Show More
Related
1993 Words | 8 Pages

Minimum wage would raise the wages of many workers and increment benefits what disadvantaged workers. An estimated 6.9 million workers would receive an incrementation in their hourly wage if the minimum rage were raised to $10.15 by 2015. Due to the spill over effect the 10.5 million workers earning up to a dollar above minimum wage would withal be liable to benefit from an incrementation. Women are the most astronomically immense group of beneficiaries from a minimum wage increase. Sixty percent of workers who would benefit from an incrementation are women.

Read More
623 Words | 3 Pages

Today’s minimum of $7.25 an hour is worth 25 percent less than the minimum in the late 1960s. From research, a full-time, minimum-wage worker earns about $15,000 per year, which is below the federal poverty line for a worker with just one child. We need to raise the minimum wage to the point where the lowest-paid worker can afford their basic needs, such as food and other necessities. An increase to $10.00 an hour as proposed by President Barack Obama would actually reinstate the wage factor to the same value it had back in the 1960s. In doing so, it would lift earnings for nearly 28 million workers nationwide roughly 1 in 5 U.S. workers.

Read More
861 Words | 4 Pages

The idea of a minimum wage first emerged in the early 20th century, when reformers and labor groups pushed for legislation that would place a floor on salaries. As part of the Fair Labor Standards Act, the first minimum wage law was enacted in the United States in 1938. Since then, numerous nations have passed minimum wage legislation to safeguard workers against exploitation and poverty. Example #1–Historical (pre-1900)

Read More
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

Read More
465 Words | 2 Pages

One reason that raising minimum wage would help the economy is that it gives a change in income. Generally, an increase in income increases the demand for goods at all prices. If a worker has more money due to a raise

Read More
636 Words | 3 Pages

Many politicians, business owners, and citizens hold fast to the belief that heightening the salary attached to minimum wage positions will yield negative benefits for our society. This opinion is supported by three vital view-points. The first can be found in the news article, “The Argument Against Raising Minimum Wage.” It expresses how the enlargement of this payment will take a toll on employment. The document reasons that if the amount of money employees earn is expanded, companies will be less likely to hire as many workers (Huppke).

Read More
839 Words | 4 Pages

Consumer spending makes up most of the economy in the U.S. and the economy is not growing rapidly because minimum wage sets the floor. “Consumer spending makes up about 70% of our economy. The minimum wage sets the wage floor. A low minimum wage institutionalizes an increasingly low-wage workforce.” (“Raising Minimum Wage Does Not Increase Unemployment”)

Read More
486 Words | 2 Pages

Congress enacted the first federal minimum wage 25 cents an hour. Some cities have higher minimum wage. If minimum wage was rashed employees would lay off or they would cut hours. Could have impacted on economy. Some teen in the job market are facing a very competitive environment and an increase in minimum wage would only make things worse The issue boils down to a law of physics that also applies to environmental.

Read More
670 Words | 3 Pages

In conclusion, a federal minimum wage increase will significantly improve the standard of living of low-wage workers. To meet their basic needs, workers must be given a living wage. It is not only morally correct to do so, but also beneficiary to both ends. The increase in wages allows for a more supportable income, but it also stimulates the economy.

Read More
626 Words | 3 Pages

Americans can all agree that America is struggling to keep unemployment rates low. If the government raised the minimum wage to $10.10, a projected 85,000 jobs will be created in the next three years. Along with the increase of minimum wage, everyone will be making more money, otherwise known as wage inflation. If the minimum wage goes up three dollars, people who make more than minimum wage will get more money to compensate for employees that make minimum wage. The modern economy is far too ahead of the measly $7.25 minimum wage workers make.

Read More
1153 Words | 5 Pages

Introduction More numbers of state are joining to take action to raise the minimum wage to $15 per hour in a few years even though there is a high disputing controversial all over the nation. The federal has set the minimum wage level to $7.25 on Jan. 1, 2015. In less than a year the index number of the minimum wage is going up automatically with cost of living. And eventually it will be likely to increase year by year with automatic and expectation index.

Read More
711 Words | 3 Pages

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.

Read More
546 Words | 3 Pages

But a new analysis of major minimum wage increases in communities across America including the state’s largest city of Chicago provides further evidence that raising wages is a net benefit for working people. Our research team recently completed the first study of the impact of Chicago’s minimum wage now at $10.50 and eventually increasing to $13 by 2019 and of the group of other U.S. cities, including Seattle, San Francisco and Oakland California, that currently have the highest minimum wages in the U.S. We compared job growth in Chicago and these cities with job growth in the U.S. and found that higher minimum wages boosted worker pay without leading to any loss of jobs or slowing of job growth. Recent research has also shown that higher minimum wages are helping improve a broad range of other important societal outcomes for both workers and their children. These include reducing poverty, reducing reliance on taxpayer-funded safety net programs such as food stamps, improving infant health outcomes and improving adult mental

Read More
1130 Words | 5 Pages

Minimum wage was first established in 1938 by Franklin Delano Roosevelt, in an attempt to stimulate economic growth and create a better standard of living for the lower class. This attempt was fairly successful, but also has many consequences. You may be asking yourself, “how on Earth could setting a limit on how little you can pay someone be bad?” On the surface this statement seems logical, but if we delve deeper we begin to see many negative effects on the implementation of minimum wage. In our nation the minimum wage law almost seems out of place, like it doesn’t quite fit in.

Read More
704 Words | 3 Pages

In the past three years, many politicians and labor unions have been pushing for an increase in minimum wage. Minimum wage is the lowest set wage by a law of a government body. An increase in minimum will benefit some people, and hurt others. An increase in minimum wage will cause benefit in the short run but will be very damaging to the economy in the long run. There should not be an increase in minimum wage because it is unhealthy to the economy in the long run and it will be the major cause of job loss, increase in inflation, competition, and the price level of goods and services.

Read More

More about Should Minimum Wage Be Abolished Essay

Related Topics

Open Document