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Why Is Minimum Wage Law Good Or Bad

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Minimum Wage Law, Good or Bad? As minimum wage goes, can $7.25 an hour benefit or hurt society and can an average person live off that minimum income. That is a question that many people have tried to answer for years. The idea of minimum wage started during the Great Depression and was later made into a labor law by President Theodore Roosevelt. Ever since the minimum wage has been in place there has always been controversy on the amount that is proposed, is this too much or too little? As www.raisetheminimumwage.com states… “The current federal minimum wage is $7.25 per hour, which translates to $15,080 for a full-time, year-round worker.” We must look at all the viewpoints of each of the people affected in the economy to address this …show more content…

Many of these employees’ tips earned increases their hourly wage. Employees that work for minimum wage often have their own bills and families they also need to take into consideration when they receive their paycheck. Is this $7.25 an hour enough to support a whole family? As the cost of living increases, their paycheck stays the same. In terms of the cost of living today, the minimum wage price is 30% lower than it was in 1968. It is shown that the world’s biggest corporations have the lowest paid workers. You may think that mostly teenagers work for minimum wage, but that is not the case. Adults make up a huge population in the workforce that make up the minimum wage. “88 percent are adults, with more than a third over age 40. These workers earn half of their families' incomes.” (www.huffingtonpost.com) By raising the minimum wage pay to $10.00 an hour, which is approximately a 38% increase in what the average worker makes today. You may think, of course, they should raise the minimum wage, why not? Well, a lot of other variables tie into raising the price paid. Some jobs could cut back on workers because they are paying more to their employees. They could also cut employees hours because they increased hourly pay to save money within the …show more content…

As minimum wage workers go, they are the biggest group of workers, growing faster than any other group. Keeping employees income at $7.25 raises the chances of employees resigning to find a higher-paying job. Raising minimum wage could decrease employee turnover and increase productivity. Should our company pay employees over minimum wage? This is an everyday question for various small business owners. Most of the small businesses are nervous to start paying their employees more because the possibility of loss in their

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Introduction: Alyana: Imagine working multiple shifts each day, only to return to your run-down home and starving children. Unfortunately, this is the reality many parents face throughout this country. Alyssa: More than half the workers in the US on average have the federal minimum wage of $7.25 per hour, and that money is used as their primary income. These workers depend on their salary to pay their monthly bills, their children’s needs, and other basic necessities.

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484 Words | 2 Pages

Michael R. Strain states “the case against raising the minimum wage is straightforward:A higher wage makes it more expensive for firms to hire workers. ”which means that if the minimum wage goes up firms would not be able to to hire employees because they wouldn't be able to afford them due to the increasing of the minimum wage.

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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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1423 Words | 6 Pages

The American Action Forum believes that raising the minimum wage can do more harm than good and hurt the people it’s supposed to help. Job loss in the millions would happen if the wage was raised from $7.25 to $15. People in poverty before the increase would have trouble finding jobs because companies would have to have less positions to counter the wage raise. Komlos, John. " Column: Why Raising the Minimum Wage Is Good Economics."

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1913 Words | 8 Pages

The current federal minimum wage is set at seven dollars and twenty-five cents. Many workers across the country are complaining that the purchasing power of the minimum wage is currently low, meaning one cannot buy as much while living off of the minimum wage. Moreover, citizens are work full time, while earning the minimum wage, are living, on average, several thousand dollars below the poverty line. However, an increase in the federal minimum wage may do more harm than good. It is likely that an immediate increase in the federal minimum wage will lead to an increase in high school drop outs, a large cut in the workforce, mass amounts of inflation, as well as a large amount of jobs being outsourced.

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784 Words | 4 Pages

The increase of minimum wage would be good because it will help low income people keep up with price inflation. 3.There is a essential need for the federal minimum wage to increase because not only the people will benefit from it, but the economy as well. 4. Companies who are able to pay higher minimum wage will benefit with increased productivity and customer satisfaction. 5.

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75 Words | 1 Pages

Raising the minimum wage will allow society to keep up with inflation, extract people out of poverty, and stimulate the economy. Even though there are some negatives to increasing the wage, many of the opposing arguments have been found to be false or even have had the opposite effect. Increasing the wage will be beneficial to the workers as well as the businesses, making the wage increase a positive change in the United States economy.

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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.

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993 Words | 4 Pages

The federal minimum wage should be increased because it would decrease poverty rates, stimulate the economy, and inflation has surpassed current wages. A raise in the federal minimum wage would help pull millions of Americans out of poverty. Currently, there are over forty-three million Americans who live beneath the poverty line (“Should We Raise”). Of those in poverty, many are trying to support themselves, as well as their families, while living off of a minimum wage job.

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1900 Words | 8 Pages

The first reason to raise the minimum wage is it will reduce employee turnover. Yes, if employees have a decent paying job which they can pay their bills on time and still have some

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679 Words | 3 Pages

To begin with, the federal minimum wage should be raised because it would increase jobs and economic activity. Economists from the Federal Reserve Bank of Chicago believe that raising the minimum wage to $9 an hour would increase household spending by 48 million dollars. Increasing the amount of household spending would help the economy by injecting more money in the economy. In addition raising the minimum wage to $10.10 an hour would create 85,000 more jobs for the United States. Creating new jobs would help the economy because people would have more money to spend which would increase the economy.

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468 Words | 2 Pages

Most will say that raising the minimum wage would inspire employees to work harder. Although this may be true, it also wouldn't be fair. For instance, someone has worked at this place for 3 years and for 2 of them he/ she was only paid $9 an hour, that employee is now training a new employee for his/her new job, now even though that employee is new and isn't used to working there, they are still paid the $15 an hour.

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343 Words | 2 Pages

Seven dollars and twenty-five cents an hour, or fourteen thousand five hundred per year, is the lowest amount the government deems appropriate to pay workers. This amount is sufficient for a single person with no extra expenses, but that is often not the reality of minimum wage workers. While some believe that raising the minimum wage would do more harm than good, increasing the minimum wage to a living wage would benefit society by reducing poverty, increasing productivity, spurring economic growth, and improving peoples’ quality of life. Some people say that paying workers a living wage would benefit not only the workers but the whole of society.

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571 Words | 3 Pages

As one gets older and discovers jobs, a part of the adult world, he or she may find that the amount of money he or she makes at minimum is a set value. This set value in the United States is called federal minimum wage. The current federal minimum wage as of July 24, 2009 is $7.25 per hour. At 40 hours a week for 52 weeks this is an annual salary of $15,080. At this value some argue that it should be raised to allow low-level employees to earn more, and to put more money into the economy.

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566 Words | 3 Pages

Americans below the poverty line are demanding for increased pay in their minimum wage jobs. Although with the increase to fifteen dollars an hour, many Americans would be left jobless pushing them farther under the poverty line increasing the wage by over half would harm the country’s economy more than improve it. Minimum wage workers want higher wages for the work they provide, but inflation, unemployment, and businesses closing will only cause more issues for Americans. The disadvantage to raising the pay for minimum wage workers is inflation.

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