One might ask, what is minimum wage? Minimum wage is the lowest hourly amount an employer can pay an employee. There may be some exceptions based on the type of worker. There are two kinds of minimum wage rates, state and federal. Right now, the current minimum wage is $7.25 per hour. In some states, minimum wages are higher than the federal rate. Workers are paid the higher amount in those locations. Minimum wage has been a hot subject among the policy makers and economists. It has also been a hard and tight issue for the economists. This goes back as far as the 1938 Fair Labor Standards Act. Minimum wage was a politically debatable issue. In 1933, President Franklin Roosevelt attempted to legislate a federal minimum wage, but it was taken down. Eventually, President Roosevelt won and Congress passed the FLSA. At that time minimum wage was set at 25 cents per hour. Since the passing of the Fair Labor Standards Act, the United States has required that all firms that do at least $500,000 worth of business per year pay their co-workers a minimum wage. Minimum wage plays a big part in the cost of labor and hGet Access to AntiEssays.com - Complete Your Registration Now.
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The Economics of Minimum Wage Essay
Below is a free essay on "The Economics of Minimum Wage" from Anti Essays, your source for free research papers, essays, and term paper examples. The Economics of Minimum Wage
One might ask, what is minimum wage? Minimum wage is the lowest hourly amount an employer can pay an employee. There may be some exceptions based on the type of worker. There are two kinds of minimum wage rates, state and federal. Right now, the current minimum wage is $7.25 per hour. In some states, minimum wages are higher than the federal rate. Workers are paid the higher amount in those locations. Minimum wage has been a hot subject among the policy makers and...
...Against Raising MinimumWage
People everywhere are voicing out that we need to increase minimumwage, again. They say that an increase will have a minor impact on jobs but there are no facts to back them up. The impact of raising minimumwage has been studied since the beginning, and has been concluded that raising minimumwage hurts the poor, and helps the rich. Raisingminimumwage takes away jobs; especially the low-skilled and young worker, keeps people on welfare, and also encourages high school students to drop out. When you look at the facts, is it really worth raising minimumwage? All credible research has come to the same conclusions, and these I will discuss with you.
Poverty will rise
When minimumwage is raised, businesses have to raise the price on whatever products or services they offer, to offset the loss of profits from having to pay the employees more money. With products more expensive, consumers will not be able to afford to buy as much as they normally would, and businesses will start to go under; causing a huge loss of jobs. Small businesses will start going out of business first, and will eventually lead to bigger businesses. Take Visteon for example, in Connersville, Indiana. Visteon was one of the biggest employers around this area. 900 plus jobs...
In the United States MinimumWage is approaching record lows. Even with recent increases inflation is one of the main reasons that workers are being paid less for labor than they were back in the Seventies. There are about 3 million workers in the United States that worked full time year round last year and still fell below the National poverty level. If everyone earns exactly the same amount of money, then the income distribution would be perfectly equal. If no one earns any money except for one person, who earns all of the money, then the income distribution would be perfectly unequal. In a normal society Income Distribution is usually somewhere in the middle of perfectly equal or unequal. When a small number of people start receiving a large portion of the income in a society, the government tries to find ways to redistribute income. Governments try to stop the rich from getting richer, and the poor from getting poorer in order to achieve a good balance in income distribution. Minimumwage laws are a way that the federal and state governments balance income distribution.
MinimumWage is considered a price floor. Minimumwage laws determine the lowest price possible that any employer must pay for labor. In the traditional minimumwage model the quantity of supplied labor is...
November 5, 2013
Argument Rough Draft
Do minimumwage workers deserve a better paying wage? Perhaps a wage that they are believed to be able to live off of? Will raising the minimumwage help those it really intends to? With unemployment pushing 8% nationwide and costs rising, nationwide people are pushing for minimumwage to be increased. Theminimumwage was established by Franklin Roosevelt as part of the New Deal in the 1930’s. The Fair Labor Standards Act of 1938, as stated by Jonathan Grossman on dol.gov, is what ultimately established the minimumwage nationwide for all workers. The minimumwage guarantees workers a wage that is fair for all workers. It is the lowest possible amount that an employer can pay their workers.Though it is believed that the minimumwage will help the lower class, raising it will not actually help those it intends to, but in fact raise living costs and many other expenses when the minimumwage is raised.
The problem with minimumwage is that it is not kept up with yearly. As inflation across our country increases yearly, minimumwage stays the same. With unemployment at about 8%, many people are...
22 November 2011
No Title Yet
Minimumwage has been a continuing matter since its first establishment, and it is something everyone faces. Though, the recurring problem being brought up again and again is the issue of being underpaid, and is the set minimumwage fair? And will raising minimumwage be more beneficial or harmful in the long run? Through its history can society better understand and find a solution to this problem. Minimumwage was not instituted in the United States until the 1920s, and the idea of wages being determined by the hour was introduced in the 1930s. The Fair Labor Standards Act was born and passed through the Supreme Court in 1938, as well as the Wage and Hour Division. Raising minimumwage has promoted fairness in the work area, and has helped workers earn money for themselves and their families. Through these fairness and equality had been brought about, though its problems have risen throughout after its establishment, questioning its fairness and equality. With the unemployment rate so high, this matter needs to be looked into, as it could potentially save jobs.
While many support the idea of raising minimumwage, those opposing the idea claim that raising the minimum is rather detrimental than...
October 6 2013
News article: http://nytimes.com/2013/02/13/us/politics/obama-pushes-for-increase-in-federal-minimum-wage.html?pagewanted=all&_r=0
American workers will have a 1.75$ increase in their hourly wage by the end of 2015, as President Barack Obama recently called to raise the federal minimumwage from $7.25 an hour $9.00 an hour. This increase in the minimumwage of American citizen aims to help people with a low annual wage: cooks, employees of the janitorial industry and many others working these necessary menial occupations are set to benefit. The white house estimates that this measure will boost the wage of approximately 15 millions low-income workers.
Raising the minimumwage, according to the White House press, will have some positive effect for low-income families; however, many companies are opposed to raising the minimumwage. A higher wage will have a direct impact on the cost of business. Some economists argue that higher minimumwage will result in an increased unemployment percentage. Although minimumwage laws can fix hourly pay, they cannot guarantee jobs. Employers are not willing to pay a worker more than the value of the additional product that he...
...The minimumwage is the lowest rate at which a worker can be played. There she minimumwage laws pegged to hourly, daily and even monthly rates, although U.S. law is pegged to an hourly wage. Also, a minimumwage law usually makes it illegal for a person to sell his labor for less than the minimumwage rate
The general purpose of the minimumwage is to guarantee a living wage to all workers who work a standard period of time, whatever that might be. In theory, any labor who works 40 houses a week on minimumwage should be at or above the poverty level line. However, the minimumwage has not kept up pace with the inflation in the United States and the cost of living increases more than the wage increases that are given and that way behind the standards
Minimumwage laws were first started in Australia and New Zealand in the 1890s.The first minimumwage to be law was in Massachusetts in the 1912 but it only applied to children and women. The federal minimumwage was established in 1938 by the Fair Labor Standards Act. Initially set at 25 cents an hour, the wage has been raised periodically to reflect changes in inflation and productivity....
2) To meet legal requirements – By law all organisations however large or small must keep records of certain information, for example recording hours worked by employees to meet the requirements of the Working Time Regulations 1998, pay rates to ensure the requirements of the MinimumWage Act 1998 are being met, tax and national insurance details. Recording certain personal Data enables employers to monitor legislation compliance.
Below I have given an example of two types of data collected by organisations and how they support HR;
1) Details of any disciplinary action – Keeping record of this type data supports HR in making decisions based on true facts rather than guess work and can enable management to take all previous records into account when deciding what action to take when an employee has been in breach of their contract or the organisations rules and can assist when applying disciplinary rules fairly.
2) Contractual Agreements – Keeping record of hours of work, contractual changes, pay rates etc can support HR when employee information is requested from the Inland Revenue to ensure organisations are complying with Working Time Regulations and National MinimumWage. Information held by HR can also protect organisations against claims made against them.
Below is an example of two methods of storing Data;
1) Manually – The traditional method of storing data is to manually record...
...past four weeks. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force.
Types of Unemployment:
* Classical Unemployment
Classical or real-wage unemployment occurs when real wages for a job are set above the market-clearing level, causing the number of job seekers to exceed the number of vacancies. Many economists have argued that unemployment increases the more the government intervenes into the economy to try to improve the conditions of those without jobs. For example, minimumwage laws raise the cost of laborers with few skills to above the market equilibrium, resulting in people who wish to work at the going rate but cannot as wage enforced is greater than their value as workers becoming unemployed.
Cyclical or Keynesian unemployment, also known as deficient-demand unemployment, occurs when there is not enough aggregate demand in the economy to provide jobs for everyone who wants to work. Demand for most goods and services falls, less production is needed and consequently fewer workers are needed, wages are sticky and do not fall to meet the equilibrium level, and mass unemployment results. Its name is derived from the frequent shifts in the business cycle although unemployment can also be persistent as...