April 27, 2011
Minimum Wage effects: Beneficial or Hindrance?
In the United States, workers are covered by the Federal Government when it comes to the worth of one’s labor. This is done through laws governing the minimal amount of pay per hour of labor. This law is called the Fair Labor Standard Act (FSLA). Currently, the minimum wage is set at $7.25. This is much higher than previous amounts. During economically difficult times, the Federal Government may deem it necessary to raise the minimum wage. This decision has many effects upon the nation financially. In 2007, the Federal Government proposed and enforced a series of increases with the results being $7.25 as of July 24, 2009 (Women’s Health Weekly). This increase has a direct effect on workers and employers. For those employees earning less then the new minimum wage, the gain in income was very welcome. This additional income will allow individuals to begin to pay off debt or more easily afford groceries and other necessities. For the workers of minimum wage jobs who managed to live within their means and avoid debt, this increase could potentially provide a better standard of living. Perhaps, the increase of the paychecks will be enough to afford purchasing a better car or even a better residence. Some individuals who are fiscally responsible may even decide to save the difference or invest it in stock options or IRA’s to help build a better foundation to a higher standard of living. With this positive effect on workers come the adverse effects to the employers. For large scale companies such as corporations, the requirement to pay employees more does not have a large impact on a company’s ability to operate as well as it has been. For small scale companies like family owned business, this new expense on payroll is a big deal. It could potentially influences the company to cut employees hours or even reduce the number of employees. In any case, large or...
15, April, 2013
The True Affects of MinimumWage
With voters seeking a bulwark against the Great Depression, wage-hour legislation was an issue in the 1936 Presidential race. On the campaign trail, a young girl handed a note to one of Franklin Roosevelt's aides asking for help: "I wish you could do something to help us girls," it read. "Up to a few months ago we were getting our minimum pay of $11 a week...Today the 200 of us girls have been cut down to $4 and $5 and $6 a week.” Roosevelt rode back into office in part on a promise to seek a constitutional way of protecting workers; in 1923, the Supreme Court had struck down a Washington, D.C., minimum-wage law, finding it impeded a worker's right to set his own price for his labor. The first federal minimum-wage law, the Fair Labor Standards Act, passed in 1938, with a 25-cent-per-hour wage floor and a 44-hour workweek ceiling for most employees. (It also banned child labor.) Outside of Social Security, said Roosevelt, the law was "the most far-sighted program for the benefit of workers ever adopted." Wages must ensure a "minimum standard of living necessary for health, efficiency and general well-being," the act stipulated, "without substantially curtailing employment." Ever since, however, critics and supporters have slugged it out over the...
...Minimumwage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimumwage is now a staple in 90 percent of countries in the world (Minimum). Even with these minimums, a person’s lifestyle is hard to maintain. Sustainability, in my opinion, is the ability to keep or maintain a certain amount of physical or mental property. In this light of sustainability, minimumwage is not a sustainable amount of money in which to survive with a basic quality of life. There are many supporters and objectors to the minimumwage debate. Supporters say that increasing minimumwage increases the workers earning power and wages. Objectors say that increasing minimumwage only leads to unemployment due to small companies’ inability to pay workers. Also the increased inflation rate of goods only hurts the economy, which leads to many jobs being lost, mainly the jobs held by minimumwage patrons. Although this is a heated debate there is one thing to which both sides agree; something needs to be implemented so that workers are not exploited by businesses. Economists are exploring the viability of minimum...
...The federal minimum was originated in the Fair Labor Standards act signed by President Franklin Roosevelt on June 25, 1938. The law established a minimum was of .25 cents per hour for all employees who produced goods that were shipped in the interstate commerce. The wage is equal to $4.04 in today’s market. The Fair Labor Standards Act covered about thirty eight percent of the labor force, mostly in the manufacturing, mining and transportation industries. Congress expanded the coverage and increased the minimumwage rate. The air transport industry was added in 1947, followed by retail trade in 1961. The construction industry, public schools, farms, laundries and nursing homes were added in 1966 and coverage was extended to state and local government employees in 1974. The Fair Labor Standards Act covers about 85 percent of the labor force.
Since 1938 the federal minimumwage has been raised twenty two times. From 1949 to 1968 the value of minimum was (2011 in real dollars) rose fast from $3.78 to $10.34. At $7.25 per hour the minimumwage today in real dollars is eighty five percent greater than the original benchmark and just below its average for the past sixty years of $7.59.
The Fair Labor Standards Act requires employers to comply with the state minimumwage laws that may set a state...
One might ask, what is minimumwage? Minimumwage 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 minimumwage rates, state and federal. Right now, the current minimumwage is $7.25 per hour. In some states, minimumwages are higher than the federal rate. Workers are paid the higher amount in those locations.
Minimumwage 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. Minimumwage was a politically debatable issue. In 1933, President Franklin Roosevelt attempted to legislate a federal minimumwage, but it was taken down. Eventually, President Roosevelt won and Congress passed the FLSA. At that time minimumwage 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 $500,000 worth of business per year pay their co-workers a minimumwage. Minimumwage plays a big part in the cost of labor and hGet Access to...
November 5, 2013
Argument Rough Draft
Do minimumwage workers deserve a better paying wage? Perhaps a wage that they are believed to be able to live off of? Will raising the minimumwage help those it really intends to? With unemployment pushing 8% nationwide and costs rising, nationwide people are pushing for minimumwage to be increased. Theminimumwage was established by Franklin Roosevelt as part of the New Deal in the 1930’s. The Fair Labor Standards Act of 1938, as stated by Jonathan Grossman on dol.gov, is what ultimately established the minimumwage nationwide for all workers. The minimumwage guarantees workers a wage that is fair for all workers. It is the lowest possible amount that an employer can pay their workers.Though it is believed that the minimumwage will help the lower class, raising it will not actually help those it intends to, but in fact raise living costs and many other expenses when the minimumwage is raised.
The problem with minimumwage is that it is not kept up with yearly. As inflation across our country increases yearly, minimumwage stays the same. With unemployment at about 8%, many people are...
October 6 2013
News article: http://nytimes.com/2013/02/13/us/politics/obama-pushes-for-increase-in-federal-minimum-wage.html?pagewanted=all&_r=0
American workers will have a 1.75$ 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...
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...
...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....