Minimum Wage: Killing America
Imagine that Bob is the owner of the local laundromat. He makes enough money to pay five people $7.35 an hour. Bob is barely breaking even in his business but still manages to get by. Now think about what a $9.00 starting base salary looks like. That is almost two more dollars an hour and now Bob has to cut 3 people so he can pay rent and function his store. He now has to work twice the shift while paying two people; money he can pay for three people. As one can see, increasing minimum wage might seem good for the economy, but this simply is not true. There are too many detriments for there to be an actual benefit. Increasing the minimum wage is not what America needs, if anything it should be lowered. It should not be increased because it would hurt the economy, there would be less jobs in America, and the majority of poor Americans do not work; therefore it would not benefit them at all. The economy of the United States is currently not doing well and there is a debate happening about whether the minimum wage should be increased or decreased. The minimum wage is a known price floor, "which sets a minimum price that an employer can pay a worker for an hour of labor" (O'Sullivan and Sheffin 130) and that is what our economy needs right now, not a price ceiling which is "a set below the market price, then a "shortage" is created; the quantity demanded will exceed the quantity supplied" (Investopedia). The minimum wage should be lowered rather than increased because that will only lead to negative side effects. For example, if the minimum wage is increased then the government will need to print more money and that means inflation will happen. This will cause the American dollar to go down and cause the economy to suffer even more. Another thought is that the United States needs jobs. If the minimum wage is increased then existing jobs will want their workers to have more experience. Those people that need a job will have a much lower...
A minimumwage is the minimum amount of compensation an employee must receive for performing labour. In economic term, minimumwages is the price floor of the pay of the labour that set by the government. The minimumwages rate normally was fixed by legal authority as such, it is illegal to pay an employee less than the minimumwage. Our economic transformation goal is to make Malaysia a high-income nation by 2020, with a per capita income of US$15,000 a year, however there are still around 30% of the people in Malaysia are still living below the poverty line. The general purpose for the implementation of the minimumwages is to ensure that the wages of a labour is able to meet the basic standard of live which is be at or above the poverty line so that they can survive with their salary. In Malaysia, The Prime Minister YAB Datuk Seri Najib Abdul Razak announced the rates of national minimumwages in Peninsular will be RM 900 while Sabah, Sarawak and Labuan will be RM800. This implementation of minimumwages in Malaysia was the decision under the National MinimumWages Consultative Act 2011. The national minimumwage is the first ever in Malaysia. This...
Should We Raise the MinimumWage to the Average Pay Rate?
University of Phoenix
September 30, 2013
“Should We Raise MinimumWage to the Federal Average Pay Rate?”
On the United States Department of Labor website it states that in 1938 it was decided that a federal minimumwage should be set. When it was set, it was set for the amount of $0.25 an hour. Now as of 2013 it is $7.25 an hour. (Grossman 1978. Washington’s minimumwage is the highest at $9.19 an hour, it joins its 18 other states with a higher wage. Almost half the states agree with the minimumwage; five have wage lower and another five do not even have a minimumwage. There is clearly a divide on the thoughts of raising minimumwage to make things more even. What our group wants to question here today is the raise of minimumwage to the federal average pay rate. In the United States after researching 426,448,460 people in more than a thousand occupations the average pay rate would be $20.60. (United States Department of Labor 2013) Thomas Sowell says it best,
`“Unfortunately, the real minimumwage is...
...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....
...Union address, President Obama aggressively addressed the age-old debate of raising the minimumwage. The President has urged legislators to raise the federal minimumwage to $10.10 per hour to fight the ongoing battle of class inequality. Subsequently, Massachusetts legislators proposed a bill that would incrementally raise the state minimumwage to $10.50 over the next two years just weeks after the President’s address. The prospects of this proposed legislation have left workers and liberals alike in Massachusetts rejoicing while employers and conservatives (all five of them) have balked at the bill. The following paper looks to examine this proposed bill and accompanying arguments for and against raising the minimumwage.
The Massachusetts MinimumWage
On March 13 of this year, House Speaker Robert DeLeo proposed a bill to incrementally raise the current state minimumwage in Massachusetts from $8 to $10.50 by the middle of 2016. Unlike the proposed federal legislation, however, the new minimumwage in Massachusetts would not be tied to future increases in inflation. The bill entails an increase in wages to $9 in July of 2014, followed by an increase to $10 in 2015, and ultimately, an increase to $10.50 by mid-2016. This proposal, however, is not a new...
...History of the MinimumWage
· 1938 -- The minimumwage was first enacted into law as part of the Fair Labor Standards Act (FLSA) of 1938. The original minimumwage applied to workers engaged in interstate commerce and the production of goods for interstate commerce. In 1938, this applied to roughly 11.0 million workers out of a total of 54.9 million workers. The minimumwage was set at $0.25 per hour.
· 1961 -- Amendments to the minimumwage law extend coverage primarily to employees in large retail and service trades as well as local transit, construction, and gasoline service station employees.
· 1966 -- Amendments to the minimumwage law extend coverage to state and local government employees of hospitals, nursing homes, and schools and to employees of laundries, dry cleaners, large hotels and motels, restaurants, and farms. Subsequent amendments extended coverage to the remaining federal, state and local government employee not protected in 1966, to certain workers in retail and service trades previously exempted, and to certain domestic workers in private household employment.
The 20-percent increase in the federal minimumwage scheduled to occur over the next year may not be the best way to boost the incomes of low-skilled workers and their families. This article...
...The Minimum-Wage Controversy
The minimumwage sets a minimum on what employers are allowed to pay workers. In the United States, the federal minimumwage began in 1938 when the government required that covered workers in covered industries be paid at least 25 cents an hour. At that time, the minimumwage was about 40 percent of the average manufacturingwage. The minimumwage was raised occasionally, and by 1996 it had reached $4.25 per hour, which was only 33 percent of the average manufacturing wage rate. Because the minimumwage had declined relative to average earnings, President Clinton proposed and Congress passed a minimum-wage increase to $5.15 per hour in 1997.
This is an issue that divides even the most eminent economists. For example, Nobel laureate Gary Becker stated flatly, “Hike the minimumwage, and you put people out of work.” Another group of Nobel Prize winners countered, “We believe that the federal minimumwage can be increased by a moderate amount without significantly jeopardizing employment opportunities.” Yet another leading economist, Alan Blinder of Princeton and former economic adviser to President Clinton, wrote as follows:
“The folks who earn the...
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...