Minimum Wage And Higher Income Essay - 849 Words

Policy Overview In recent news there has been some major discussions about whether to raise the minimum wage to either $9.00, $10.10, or $15.00 per hour. As you can see in Table 2, the minimum wage has varied over the years, but the options presented are set to increase the wage to above what is considered the poverty line. Many minimum wage workers are in favor of the wage increase, to raise it to a more â€Å"livable† wage. Yet, they may not know what the wage increase will entail for the economy, such as, an increased unemployment rate. The increase is supposed to raise the minimum wage for low-income workers to an income above the Federal Poverty Threshold. The increase is supposed to be the first step to solving the income inequality problem in America and a step towards economic growth in America, by helping to stimulate the economy. To begin, the wage increase would have two major changes to the lower-income workers. The first effect would be that low-income workers wou ld receive a higher pay for their work, giving them a higher family income. The other effect of the wage increase would be that because the companies would have to pay their lower-wage employees more, many of those low-wage jobs would have to be eliminated. Those eliminated jobs would dramatically increase the unemployment rate in America. As you can see from Table 1, the $10.10 wage increase would reduce the total employment in America by nearly 500,000 workers or .3 percent. But there is anotherShow MoreRelatedMinimum Wages During 21st Century America1649 Words   |  7 PagesMinimum Wages in 21st Century America In the United States the time has come for the next president to be elected and the political fervor has come early this year with an unconventional, surprisingly interesting primary race. With the coming of a new commander in chief the incessant grilling of the candidates has begun and issues, such as poverty in the United States, are being given the national spot light during debates. The issue of poverty has recently gained traction among citizens as wellRead MoreFederal Minimum Wage Should Not Be Increased1005 Words   |  5 PagesAct (FLSA), Federal minimum wage first went active October of 1938 starting at 25 cents an hour. According to The Bureau of Labor Statistics the minimum wage was not consistent until the start of 1978 and has increased 22 times since then to keep up with the rise on the prices of goods and services. The stretched period of times that minimum wage increased as well as inflation, the purchasing power of the minimum wage has decreased significantly during the time. The minimum wage is not cataloged toRead MoreThe Positive and Negative Effects of Raising Minimum Wage805 Words   |  4 Pages A sensitive topic for many Americans is their income. Many people’s income relies on minimum wage. In 2012, 3.6 million people received an hourly pay at or below minimum wage. There is an ongoing debate in government as to what the minimum wage should be. Stuck at $7.25, Obama has suggested raising the minimum wage to $9.00. Depending on a person’s perspective, raising minimum wage could be positive or negative. Minimum wage has the ability to change lives, and change the economy. Small businessesRead MoreThe Effects Of Minimum Wage Increase On The Household And Industry942 Words   |  4 Pagesis the effects of a minimum wage increase on the household and industry?Minimum wage in the state of Illinois is only $8.25,but in most jobs $7.25. Most States give higher than $7.25 like Washington D.C. Some minimum wages can be lower like Georgia.Family employment and family income does have a effects on low-wage workers.Most family receive higher pay,that would increase their family s income. Workers that don t have a job would fall substantially and the share of low-wage wokers.Employed wouldRead MoreThe Effects Of Minimum Wage On The Society1207 Words   |  5 Pages Minimum wage is the topic I chose because there has been a controversy regarding raising minimum wage and the impact of minimum wage to the society. Whether it would aid workers or not. There have been arguments of laypersons of increasing minimum wage to a very high level and there are arguments against it. History behind minimum wage The Ordinance of Labourers (1349) is the forerunner to the minimum wage. The Ordinance was a ruling by King Edward III who established a maximum wage for laborersRead MoreThe Economic Impact of Raising the Minimum Wage1474 Words   |  6 Pageswith it a national minimum wage. Echoes of that speech are still heard today. Senator Edward Kennedy (1989: S14707), in his criticism of the most recent increases in the minimum wage, declared: The minimum wage was, as it should be, a living wage, for working men and women ... who are attempting to provide for their families, feed and clothe their children, heat their homes, [and] pay their mortgages. The cost-of-living inflation adjustment since 1981 would put the minimum wage at $4.79 today, insteadRead MorePresident Obama Speech On Income Inequality And Economic Mobility1270 Words   |  6 PagesOn December 4, 2013, President Barack Obama addressed the nation, focusing on income inequality and economic mobility. President Obama claimed that â€Å"The combined trends of the increased inequality and decreasing mobility pose a fundamental threat to the American Dream, our way of life, and what we stand for around the globe (The White House, 2013b).† President Obama also stated that â€Å"this is the defining challenge of our time (The White House, 2013).† The â€Å"challenge† he was referring to the abilityRead MoreWage Gap Between The Middle Clas s And The Upper Class1441 Words   |  6 PagesIntroduction Wage is a topic that is constantly covered in the media. One big issue is the growing wage gap between the middle class and the upper class. While minimum wage increases are considered a good method to reduce income inequality, they are controversial since many business owners and economists argue that they increase the unemployment rate. Impact of minimum wage on employment One concern that is commonly mentioned during the debate on raising minimum wage is the loss of employment asRead MoreShould The Minimum Wage Be Paid?993 Words   |  4 Pagesvery low hourly payment according to Talk poverty: As wages go down, the percentage of workers relying on public assistance gets higher: 60 percent of workers earning less than $7.42—only slightly higher than the $7.25 federal minimum wage—receive some form of means-tested public assistance. Overall, 70 percent of the benefits in programs meant to aid non-elderly low-income households—programs like food stamps, Medicaid, and the Earned Income Tax Credits—go to working families.and it help some peopleRead MoreDemand Supply , Examine the Argument in Favour Against Minimum Wage Law in Uk1415 Words   |  6 Pages * (Using Demand Supply: examine the arguments in favour against minimum wage law in UK*) * *Total words: 1,402 Demand It refers to the willingness and ability of buyers to purchase goods and services at different prices. Supply It refers to the willingness and ability of sellers to provide goods and services for sale at different prices What* *is minimum wage? A minimum wage is the lowest monthly, daily or hourly that employers may legally pay