Pros and Cons of Raising a Minimum Wage Essay - 1126 Words

Minimum Wage A minimum wage is the lowest hourly wage that employers have to compensate the workers for their service. Currently the federal minimum wage is $7.25 per hour. However, many states also have their own minimum wage laws. In those instances, the employee is entitled to the higher of the two minimum wages. In this paper we will discuss the brief history of the minimum wage law and its current legislation. We will also analyze the pros and cons of raising the minimum wage, and the merits of each argument. The minimum wage was first introduced in New Zealand in 1894. It wasn’t until 1938, that President Franklin D. Roosevelt signed the first US minimum wage law called the Fair Labor Standards Act (FLSA). The FLSA sets†¦show more content†¦They believe that a minimum wage increase is needed to continually maintain its value. The federal minimum wage is not adjusted for inflation therefore every time inflation goes up and the minimum wage remains the sa me, its value decreases. â€Å"The value of the minimum wage in real dollar terms has risen and fallen on political tides, peaking in 1968 when an hour’s wage pay bought nearly 5 gallons of gas. By 2006, it paid for less than 2 gallons† (Fitzpatrick, 2009). Those who oppose the Fair Minimum Wage Act argue that higher wages will cause higher unemployment. These supporters are generally Republicans and employers of small businesses. They believe businesses will not be able to afford to pay higher wages and therefore must lay off employees. They also believe that increasing the minimum wage can jeopardize small businesses because smaller businesses operate at a smaller profit margin than large companies. Therefore, some smaller businesses would need to lay off employees to reduce their overhead costs and some may be forced out of business completely. Furthermore, they believe increasing the minimum wage will make inflation go up. They believe businesses have no choic e but to pass the increase in cost to the customers by increasing prices of their products and services. ANALYSIS OF ARGUMENTS Those in favor of the Fair Minimum Wage Act, claim this act will restore the minimum wage value and provide for theShow MoreRelatedPros And Cons Of Raising The Minimum Wage1908 Words   |  8 PagesTai K. Lamar Jennifer Chicosky ENG-111-IN1 07/21/17 Raising the Minimum Wage from $7.25 Can you live off $7.25 an hour? Would you be able to pay all your bills, and have plenty of money left over for food, as well as personal pleasures? Imagine your salary was cut down to a forty-hour work week at the minimum wage salary in your state. Can you save money while on a minimum wage hourly salary? These same questions are on the minds of many Americans that are currently facing these struggles every timeRead MoreThe Pros And Cons Of Raising The Minimum Wage993 Words   |  4 PagesAlthough it is not a new topic in America, the decision to raise the minimum wage continues to be controversial, especially in the political realm. The political parties still move to block the opposing party from successfully implanting their ideals, causing either nothing to be accomplished or the situation to worsen. Research shows that raising the minimum wage a reasonable amount would lessen the gap between the rich and the poor, continue to fulfill its original purpose of protecting workers Read MoreEssay on Pros and Cons of Raising the Minimum Wage1156 Words   |  5 PagesPros and Cons of Raising the Minimum Wage When you picture a minimum wage worker, who do you picture? Do you see a sixteen year old, a middle-aged mother, a college graduate, or even a senior citizen worker? In September of 2013, California governor Jerry Brown signed a new bill into act that would cause the California minimum wage to rise from the current $8.00 and hour to $10.00 and hour in increments over the next three years. The minimum wage rate will go up in two separate $1.00 boosts.Read MorePros And Cons Of Raising The Minimum Wage1122 Words   |  5 PagesSince 2009, the federal minimum wage rate for employees has been $7.25 per hour. In retrospect, this is hardly enough pay to take care of one’s self-- let alone a family with children. If a person were to add up the average cost of living for one week and then compare it to the average amount of money earned in minimum wage for that week, it would be apparent that there is little to no extra money for emergency situations. Increasing the minimum wage has been a major controversial issue; DemocratsRead MoreU.s. Federal Minimum Wage Essay1162 Words   |  5 PagesFederal Minimum Wage is $7.25 per hour. In just two years from 2013, the demanded from advocates for raising minimum wage rose from $9 to $15. However, raising the minimum wage is more complex than simply raising the number of federal standard of pay for employees. Relative control groups and other market activities play a part in the outcome of the minimum wage. For example, one instance of market activity was observers said that raising the minimum wage did not hurt individuals; however, wages wereRead MoreEffects of Increasing Minimum Wage794 Words   |  3 Pagesa federal minimum wage is a good one. The idea is to protect low and unskilled workers and allow workers to earn a living wage. The recent debate on the floor, though, is whether or not to raise the minimum wage from the current $7.25 per hour up to $10.10. President Barack Obama made this proposal during his an nual State of the Union Address, and after this there were many hot debates about it. The debates focused not only on the pro side and the con side of increasing the minimum wage, but alsoRead MoreMinimum Wage And The Wage1573 Words   |  7 Pages What is minimum wage? It is the lowest amount that employers must pay their workers per hour of their labor, legally prescribed by federal government. According to Bureau of Labor Statics, United States Department of Labor, minimum wage was first introduced in United States by President Franklin Delano Roosevelt in 1938 called Fair Labor Standard Act (FLSA). The initial minimum wage was set to $0.25 per hour in 1938 (Grossman). The minimum wage was increased twenty-two times from 1938 to 2009. AtRead MorePersuasive Essay Outline :Minimum Wage964 Words   |  4 Pages Persuasive Essay Outline :Minimum Wage 1 Intro - I want you to think about your very first job .Were you a Bellhop ,cashier ,bartender ,cooks(fast food ),lifeguard, .Now how about your second job were you a airport worker or child care worker.About how much were youRead MoreBenefits Of Working For Minimum Wage907 Words   |  4 Pagestheir employe’s hourly wages based on a minimum wage. Today in America we have many hard workers who are working for minimum wage which consists of $7.25 per hour. There is some businesses that believe all employees should be paid at minimum wage while other businesses pay well over minimum wage. Skills, attitude, responsibility and work ethic all affect how employers base employees hourly wage. When looking at the economy the government should not increase mnimum wages, there are many factorsRead MoreRaising The Minimum Wage? Essay1217 Words   |  5 PagesThe minimum wage is one of the most discussed issues around the country. Everyone has a different opinion if raising the minimum wage would help families across the country to have a better lifestyle or if would cause an unbalance in the economy. Democrats and Republicans have a different view on this issue, while Democrats supports raising the minimum wage by $15 an hour, Republicans have stated that they refuse increasing the wage because it would leave different factions of Americans outside of