...Should the government raise minimum wage One of the biggest debate is whether or not should the government raise minimum wages. Individuals who is living on a minimum wage will find it a bit difficult. They may be struggling to pay their bills, providing food on the table, and clothing themselves. I suppose it is unfair to the hard- working individuals. Minimum wage needs to be raised so people would be able to afford things. There will be more opportunities for jobs if minimum wages increased. If the people who make minimum wage spend more, then businesses will earned more and will be in the need to hire more employees. The only problem is the surplus of workers because than many employers would want to get paid more. There...
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... (History Of Minimum Wage) President Franklin D. Roosevelt characterized the Fair Labor Standards Act of 1938 (FLSA), as “the most far-reaching, far-sighted program for the benefit of workers ever adopted in this or any other country.” A law drafted by Senator Hugo Black of Alabama and signed into law in June 1938, the FLSA was designed to “put a ceiling over hours and a floor under wages” by establishing an eventual maximum 40 weekly work hours. Henderson, David R. "Raising the Minimum Wage Will Not Reduce Poverty." Poverty. Ed. Viqi Wagner. Detroit: Greenhaven Press, 2007. Opposing Viewpoints. Rpt. from "The Negative Effects of the Minimum...
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...ALL AMERICANS MOVING TOWARD POVERTY. That sentence is probably as article that came from a newspaper, or a news anchor. In all reality poverty is a big struggle in today’s time and what people think will fix it may not the best solution, but my Idea makes more sense to me. Rather than raising minimum wage, why don’t we give people more opportunities for jobs, that way prices for goods do not raise and more people can make their way out of poverty. If we could actually raise job opportunities we probably would not have somewhere near the millions of people living in poverty. “CNN.com op-ed a policy analyst with the group said that an increase in the minimum wage could boost the economy and create one hundred-sixty thousand jobs.”(Saltsman)...
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...Some people may think raising the minimum wage will reduce poverty, but guess what it really doesn’t to a point. Let me break it down for you, you see raising the minimum wage will help out, but what else is changing when you raise the minimum wage? Well when you raise the minimum wage something else changes with it. It actually redistributes income among poor families, it puts others out of work, and it doesn’t put low-wage workers out of work. Raising the minimum wage will not reduce poverty. Admittedly, Raising minimum wage increases in tax income, help bigger families, and increase in annual earnings . “In 1998, a typical family of four with a full-time, minimum -wage worker had income above the poverty line when food stamps and EITC benefits were considered” ( Furman, and Parrot). Food stamps and EITC benefits are considered for a big family of four because it will become hard for them to live with because you have to buy food, pay bills, mortgage/rent (etc). Raising the minimum wage could help out a little, but not a lot. You see raising the minimum wage will only help get big families with food and more. However once you raise the minimum wage other things would have to either change or something would have to go. other people’s pay may go up or you would have to try to recalculate how everyone’s pay is being...
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...Date: 22/06/15 The Effect of a Raise in the Minimum Wage on Employment and Profitabilty in the RMG Sector of Bangladesh, Drawing Sources From Other Developing Countries The study of minimum wages has led to many debates surrounding the topic whether a raise in minimum wage can kill businesses in profitability and employment or the change in profitability and employment is insignificant. This is a hot topic for policy makers in both developed and developing countries as a raise in minimum wage affects the economy in terms of economic growth, standards of living for the poor, survival of businesses and employment. A lot of research and literature has shown that a hike in minimum wages do not particularly affect the developed nations but the same hikes in developing countries can cause damage to firms depending on the size of the firms and their profitability. This paper attempts to show that the garments sector in Bangladesh (Ready made Garments Industry) faces the same dilemma. Since the Savar tragedy in late 2013 where a garment factory, Rana Plaza, collapsed which killed more than 1,100 people and injured and more than 2,500 people injured, garment workers and civil society demanded a raise of minimum wage from 3000 tk to 5,300 tk every month. This tragedy and similar events in developing countries lead us to think how businesses especially in the developing countries where wage rates and productivity are low can operate if minimum wage is suddenly increased threefold and...
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...Why this Salary Raise is a Bad Thing Introduction: Economics has been based on multiple theories throughout history, and one of the most popular has been the free market or laissez- faire theories. This theory is based on letting the economy grow on its own without government intervention. The laissez-faire theory is logical for several reasons including, supply and demand and competition. Traditionally, consumers will only pay the amount of value they perceive the product is worth. In the same vein, an employee will only work for a wage that he deems appropriate. If the employer lowers the wage, fewer workers will desire the job. These are a few of the reasons why the free market principle has many benefits. However, in a free market there can also be market failures. Market failures can arise from a multitude of situations such as pollution, or extreme low wages in areas of poverty. In a free market, a company could cause massive amounts of pollution and not have to bear the market cost of that pollution. The society as a whole, including people who do not benefit from the cheaper product, are the ones dealing with the polluted environment. Currently our government has been discussing a raise in the minimum wage. President Barack Obama is pushing for this bill and has many supporters. A rise in the minimum wage will be a major business issue for the next year and presidential election. Pros: Raising the minimum wage some enticing benefits to the American people and...
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...Raising the Minimum Wage Over the years the minimum wage has been a talked about topic. Many people would see it as a great idea because it would help families financially. In reality raising the minimum wage would be more of a struggle rather than a gift. The minimum wage has always been a struggle for people. Many people think that raising the minimum wage will solve all of our problems, when in reality it will not. It would only reduce the human motivation. Raising the minimum wage would also eliminate jobs making the economy struggle more. There would not be enough money circulating through the economy. Raising the minimum wage would reduce human motivation, eliminate jobs, raise taxes, and make the economy go into a hyperinflation. Raising minimum wage will reduce human motivation. In a perfect world where everyone comes from a good home, and lives in society, where people are raised to strive for better. In today’s society we do not have the perfect world. We have children being raised up to where they have to find a job at a young age just to help support their family. Children being raised up in a home like this creates a loss of ambition. Imagine, only being a child getting a job at such a young age. The only thing on your mind is being able to support the family with the money that is coming in. Imagine fighting to get the education back that was lost. Imagine not being able to go to school because there is no more time or money to help out yourself. Then the...
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...The minimum wage is often thought of as a guarantee of fairness in the employment market. As it is erroneously perceived, the minimum wage ensures that every person receives a living wage. However, the minimum wage neither guarantees that an individual be employed in the first place, nor does it guarantee that an employee will be offered enough hours of work in order to garner a so-called “living wage.” A raise in the minimum wage, without a raise in productivity for the given work, will result in companies resorting to drastic measures to secure profits. These measures include cutting down worker hours, implementing rigorous productivity standards, and most importantly, raising the cost of products and services. An increase in the minimum wage will result in an increased difficulty for low-skilled individuals seeking work, as they now have to compensate for an inequity in the value they provide and the wage they are guaranteed. In addition, those already past the threshold of the minimum wage will be forced to endure a rise in the cost of living, despite the fact that they did not receive a raise in their personal wage. Lastly, raising the minimum wage will degrade the idea of the free market, a system which allows prospective employees to exchange their work to an employer for an agreed upon wage, including wages that may not conform to the restraints of the minimum wage. Ultimately, the federal minimum wage should not be raised as it will encourage an increase in the unemployment...
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...Raising Minimum Wage Intermediate Microeconomics In the 2014 State of the Union address, President Obama called on Congress to raise the minimum wage from $7.25 to $10.10 per hour (The White House, n.d.). Many arguments stand both for and against the $2.85 per hour raise, all of which cite the affects it may have on employer costs, household income, and the economy as a whole. The majority of the arguments, however, point toward the major economic benefits that are capable if such a raise occurs. The federal government put into place a minimum wage in 1938. Nominal minimum wage values have increased intermittently ever since, starting at $0.25/hr, growing until it reached its current $7.25/hr. It has increased the most recently in three $0.70 increments, from $5.15 to $5.85 in July 2007, to $6.55 in July 2008, and to $7.25 in July 2009, where it has stayed for the past six years. In more recent years, various cities and states have made their own decisions to raise their minimum wages. For example, in 2015, San Francisco raised its minimum wage to $12.25 per hour, with plans to raise it further, to $15 per hour in 2018. In 2016, California will raise its state-wide minimum wage to $10 per hour, making it the highest state’s minimum wage (Smith, 2015). There are four major arguments against the raise of minimum wage – job loss, less job availability for low-skilled workers, lack of poverty reduction, and higher prices for consumers. In the Southern Economic Journal, experts...
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...A huge controversy in the economics world in 2012 has been a possible raise of the minimum wage from $7.25 to $9.00. Many supporters of this increase believe that a $9.00 minimum wage would enable many adults to make enough money to live off for a year. This wage increase would give low-income families a chance to make more money to support themselves and their families. Following this, supporters say these so called “low-income” families would spend more, thus resulting in an increased flow of money in the economy. However, what these supporters do not see is, many of these families will go to large department stores or super stores to make their purchases. With these large stores getting all the money many small businesses will be forced to close their doors. In addition to small businesses losing these customers, employers will be faced with another tough decision. In many small businesses employees are paid based on their skill, position, or time of employment. Many of these workers are paid the minimum wage because employers of a small business are unable to pay them any higher in order to keep their store or shop open. So what happens? Employees that currently being paid $7.25 will now be paid $9.00 and those higher level employees being paid $9.00 would be also given an approximant pay raise to $11.00 per hour. Now, how does this hurt small business owners? Here is a possible scenario. Max is the owner of a small sports shop in Waverly that has been open for ten years...
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...California Minimum Wage COMM/215- Essentials of College Writing California Minimum Wage In 2016 California minimum wage will be the highest in the country jumping form $8 per hour to $10. This will be the first minimum wage increase in six years. This increase will come in two separate $1 increments the first to take effect on July 1, 2014, and the second on January 1, 2016. Democrats back the bill saying it will help families in this economy, and it will also stimulate the economy because people will spend more money. Governor Jerry Brown said that this was an “overdue piece of legislation that would help working class families.” Republicans say it will hurt small business and hurt job growth. The California Chamber of Commerce called it "a job killer," and the California Restaurant Association said it was a "blow to small businesses" because they were thrown off by the proposal of the raise in minimum wage (“California to raise minimum wage to $10 by 2016,” 2013, para. 10). The maximization in the raise of the California minimum wage will help to decrease poverty in California. Even with the tax relief that was put in place for a family of two children, most families are still below the poverty line because they are working full time jobs earning minimum wage (“Obama gets behind democrats' $10.10 minimum wage proposal,” 2013, para. 10). Most families that are working only earning minimum wage are barely making ends meet to support their families. Hiking up the minimum...
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...Fast Food Workers’ Strike Raul Valdez’s section On Thursday September 4th 2014, thousands of fast food restaurant workers walked out of their post and joined a street protest demanding a wage of $15 per hour. Fast food workers in more than 100 cities in the US joined the protest hoping to disturb the fast food chains enough to get their executives’ attention. This protest was part of the movement that was organized by the Service Employees International Union (SEIU). A previous strike was organized on May this year and it took place not only in the US but in at least 33 countries like The UK, Philippines, India, Japan, and Belgium among others. The protests were supposed to be peaceful, but there were some instances of protesters blocking streets. The police had to intervene and at least 430 people were arrested. Kendall Fells, the organizer director of Fast Food Forward organization that helped organize the protest said “There has to be civil disobedience because workers don’t see any other way to get $15 an hour and a union” Protesters were hoping that their absence from work would make these fast food restaurants lose revenue and create chaos forcing executives in these establishments to accept the protesters’ demands. A similar strike took place when the Market Basket workers abandoned their posts when the Market Basket Board of Directors decided to replace their CEO. Although the fast food protest was highly organized and the majority of workers joined, some workers...
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...the additional effects raising the minimum wage income has on society. The United States low wage workers, namely the fast food industry workers are currently demanding higher wages. We will discuss the effect of those higher wages to businesses, the workers and those who we would not think to be affected. Effects of Minimum Wage Increases Chapter 1 Introduction Anyone who watches the local or national news has heard of the recent debate over raising the nation’s minimum wage requirements. Employees of McDonald’s, Wendy’s and Burger King are protesting in the streets and going on strike demanding a $15 per hour minimum wage (Fast Food Workers). These restaurant chains and others do not believe the minimum wage should be raised to $15 per hour for fast-food workers. There are many arguments to support both the demand to raise the minimum wage and not to raise the minimum wage. This paper will focus on different arguments and the impacts of raising the minimum wage will have on society from different angles, the first being how employers may respond to the wage increase by reducing the amount of employees they employ. The second focuses on who the mandated increase will most likely impact. And the third and final being the artificial inflation effects on the consumer. History Raising the minimum wage is not a new idea for the United States. In 1938 congress passed the Fair Labor Standards Act (FLSA) which ensured minimum wage of 25 cents per hour (USDofL). The...
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...Raising the minimums raises the maximums Most of our nation’s low-income jobs and positions are not paying like they used to. Is federal minimum wage at an all-time low? Are we not in the greatest country, where American’s who work harder live more wealthily and have more success? The first federal minimum wage legislation was created in 1938, where law stated that workers earned 25 cents an hour. Since then the federal minimum has been revised and increased twenty-two times. The federal minimum wage was ignored from the year 1981 to 1990, and again until in 2007 where wages were raised to $7.25 per hour. Eight years later, the minimum standard remains the same which is an issue for most American’s considered to be middle class today. Actually, today’s minimum wage is lower than any rate during the years between 1956 and 1985. Nearly a quarter of America’s working adults are laboring for wages that do not support families at the minimally acceptable level (Curry). A person working full-time at the federal minimum wage earns $290 in a week, around $15,080 for the year (Gillibrand). With an annual salary of $3000 less than the nation’s poverty level line, an average family of three will struggle to make ends meet. These low-income families will need government assistance, for basic living needs. At this rate of pay, even an average family who has two working/supporting parents will still have financial burdens. They will be considered a poor family, with house-hold income of...
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...According to Webster's Dictionary The definition of minimum wage is “the lowest wage paid or permitted to be paid” (“Minimum Wage”). The big question is, should minimum wage be raised? Over the years there have been many protests in Wisconsin because of people thinking that they deserve a higher pay rate. I strongly disagree with this controversial topic of raising minimum wage because it will cause more job layoffs and cut benefits, small businesses can’t afford it, and it will reduce the worker's motivation to get a higher education. $0.25 an hour was the first federal minimum wage in the 1930’s (“Why We Should Not Raise the Minimum Wage”). Although the minimum wage has raised to $7.25 per hour since then, many people still believe it is still not high enough....
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