Impacts Of A Minimum Wage Hike - 900 Words

Impacts to a Minimum Wage Hike in America There has been much controversy over the years on the impacts resulting from an imposed minimum wage and how it relates to the economy. It wasn’t until President Franklin D. Roosevelt signed a Bill enacting the Fair Labor Standards Act of 1938 that American’s gained the right to a minimum threshold by which their labor could be sold. Against much opposition President Roosevelt was for a law that banned oppressive child labor and set the minimum hourly wage at .25 cents, and the maximum workweek at 44 hours.1 The minimum wage has been around for many years and it wasn’t until recently that it has become the topic of many discussions again. The intent of this paper is to look at some of the economic impacts associated with an increase to the minimum wage. There continues to be a difference in opinion among many economists on the pros and cons of a minimum wage hike. Those in favor attribute quality of life, reduction in poverty and gained efficiencies; whil e those that oppose claim an increase to poverty, unemployment and reduced efficiencies across the board. Which path warrants the most merit and should be considered a viable option across the board for the United States labor force? Several factors should be considered when determining a fair and equal wage across the labor force. Preservation of the existing labor force, while minimizing the impacts on a business being able to maintain their competiveness is a criticalShow MoreRelatedPersuasive Speech Outline For Non Rising Of Minimum Wage Essay1228 Words   |  5 Pagesis to persuade my audience to support the non-rising of minimum wage. ___________________________________________________________________________ Introduction Attention getter (teaser): How many of you believe we in the state of California should have a higher minimum wage? Well we shouldn’t and I’m going to tell you why. Significance (why important to them?): A lot of people believe that because you re getting paid a higher minimum wage that it’s benefiting you but in reality that’s not theRead MoreThe Canadian Constitution And The Minimum Wage1510 Words   |  7 Pageswouldn’t be different for the minimum wage. The Canadian Constitution sets how this matter will be treated and specify that each province should has its own responsibility for enacts the minimum wage subjects. Minimum Wage can be a subject of high level of discussions since it affects lots of people and there are multiple factors that affect how the minimum wage is implemented, measured, and fair. From a basic perspective, the factors that are included in minimum wage are not well defined as criticalRead MoreArticle Rebuttal: Minimum Wage Essay1192 Words   |  5 PagesArticle Rebuttal: Minimum Wage Over the years there has been much debate about raising the federal minimum wage. Some states have taken it upon themselves to set higher minimum wages than the federal minimum wage, because of the lack of action by congress. The supporters of the raising of the federal minimum wage have been more vocal lately. This is especially true since studies have shown, that the gap has grown between the wealthier population, and the middle class. Recently President Obama, becauseRead MoreMinimum Wage Does Not Impact The Poverty Rate600 Words   |  3 PagesMinimum Wage Does Not Impact The Poverty Rate The Working Poor Gain Little Other than Protection In the 1930’s, during his second term as president, Franklin Roosevelt fought for and constructed many versions of legislation to end the exploitation of women and children. Finally on October 24, 1938 the Fair Labor Standards Act became effective. The Act limited the hired workers to be no less than sixteen, the work week to no more than forty hours and the minimum wage to be twenty-five cents anRead MoreSunday, July 24, 2016, Marks Seven Years Since The Last1539 Words   |  7 Pagesfederal minimum wage was raised (U.S. Department of Labor). Since raised, the cost of living has increased by nearly 12 percent. When President Obama called for an increase in 2013 19 states, have raised their minimum wage between $8.15 and $11.00. But is the hike beneficial to everyone? According to conventional economic analysis, increasing the minimum wage reduces employment in two ways. First, higher wages increase the cost to employers of producing goods and services. Second, a minimum wa ge increaseRead More Min Wage Essay1461 Words   |  6 Pages Should Minimum wage be increased? Introduction For many decades now, there has been heated debates concerning minimum wages and increases in those wages. Most people have a tendency to assume that when the minimum wage is increased people will benefit. They do not stop to think of the consequences that come from minimum wage increases. The general population merely assumes that people should make an adequate amount of income and never stop to consider the consequences, nor do they stop to considerRead MoreEconomic Outcomes Of Raising The Federal Minimum Wage1489 Words   |  6 Pagespercent of all wage and salary workers. Among those paid by the hour, 1.3 million earned exactly the prevailing federal minimum wage of $7.25 per hour. About 1.7 million had wages below the federal minimum. Together, these 3.0 million workers with wages at or below the federal minimum made up 3.9 percent of all hourly paid workers†(Ratio of Minimum Wage). The Federal minimum wage drives debate among people today, and with many wanting the feder al government to raise the minimum wage to fifteen dollarsRead MoreThe Labor Standards Act Of 19381638 Words   |  7 Pagesearns the minimum wage still lives below the poverty line. That’s wrong. Tonight, let’s declare that in the wealthiest nation on Earth, no one who works full time should have to live in poverty.† —President Barack Obama. For the purpose of keeping America out of poverty and increase consumer purchasing power in order to simulate the economy, President Franklin Roosevelt signed the law of minimum wage on June 25, 1938 as a part of the Fair labor Standards Act of 1938. The first minimum wage was $0.25Read MoreThe Minimum Wage Should Be Legal905 Words   |  4 PagesRise in minimum wage has several impacts apart from unemployment. The minimum-wage workers would have to pay more taxes and receive fewer benefits if they are subjected to rise of minimum wage. The federal marginal rate for tax is 32 percent on an average for low earning me mbers. This would amount to almost one third of the income of a worker. The tax rate is quite high for low paid workers. The rise of minimum wage would also reduce some of the advantages and leverages that the low-wage workersRead MoreRaising Minimum Wage For Fast Food Workers1001 Words   |  5 Pageshigh school, or have no education at all. How would that make you feel? Either way, a movement, called Fight for Fifteen, is lobbying elected officials to mandate minimum wage for fast food workers at fifteen dollars an hour, and I feel it is a slap in the face to America’s middle class. With the ridiculous demand to raise minimum wage to unprecedented heights, the economy will tank. In the long run, the people demanding the increase will find it harder to stay employed. Lastly, compared to other