The Pros And Cons Of Minimum Wage

Minimum Wage Decisions

Name

Institution Minimum Wage Decision

Introduction

Many things interrupt people's ability to focus on a task, minimum wage being on the forefront as it directly affects the business persons and the size of what goes into their pockets. Their cry will always be that they meet their daily needs to support their families. Employment is the key to sustaining people to meet their daily requirements, minimum wage, according to the standard of economic theory, will lower the work of low-wage workers. A debate has risen on the question of deciding on how to reduce minimum wage and how it should be cut because it directly impacts on people's earnings in their businesses. Numerous studies have been conducted to overlook

In the early 1970's the studies conducted were short and only goes back to 1954 unlike recent studies which could use double the observations made in the first (Card & Krueger, 1995). On the other hand, jobs that pay an almost the same amount as minimum wage plays an integral part in the United States labor force (Belman & Wolfson, 2014). Another recent finding showed that an increase in the federal minimum wage dramatically impacts on workers negatively (Card, 1992). Therefore, the current study demonstrates the pure truth that should drive into the decision on how the lowest wage rate is determined. The decision not only helps the government in concluding but also the business workers in their daily

They found that if the actual payments will at one point decline, then it tampers with the purchasing power of consumers, hence poverty goes up. United States Bureau creates a report on income and publishes them year by year. From their publications, there is an increase in poverty levels and decreasing salaries over time. From there data released in 2006, there was a significant gap in the difference between the earnings of the poor and those of the rich. Those below 125% are; White 14.4%, not Hispanic were 11.4%, Black 30.7%, Asian 14.1% and any other race 28.9%. From the data, it is clear that poverty not only exists in other races but also in the