Minimum Wage And Its Effect On Employment - 839 Words

During the past five years or so, the minimum wage in the United States (U.S.) have been a topic of interest for many parties. On one side, the parties that oppose an increase in the minimum wage believe that an increase will spark an epidemic of high unemployment rates. On the other side, the parties are asking for an increase in the minimum wage for many other reasons, including help lower the poverty levels, afford health insurance and higher education among other needs. Throughout the U.S., the inequality of wages and compensation have been a problem for some time. Despite the large, diverse workforce in the country, the policies that govern the minimum wage should be revamped so that all workers are equally compensated. Of course, employers and some policy makers will argue that an increase in pay will have an adverse effect on employment, whereas an increase in the minimum wage will be more harmful rather than helpful. However, instead of revising these policies annually, or e ven two to three years to observe the reaction of the employment rate, it is always best to just say, â€Å"It just won’t work†. Imagine if the workforce in major cities in the U.S. felt the same way and decides to go on strike, all at the same time; the outcome will be devastating. In 2013, the federal government tried this for about two weeks through the furlough of federal workers, believing that the country will benefit from doing so. Turns out, multi-billions of dollars were lost in just thisShow MoreRelatedThe Effects Of Minimum Wages On Employment, By Benjamin Sosnaud, And The Effects Of Minimum Wage Essay1507 Words   |  7 Pagessmall hourly wages. Some groups advocate for increased wages, but others oppose that idea because of the possibility of widespread job losses. Even though researchers have heavily analyzed the effects of a living wage in the past few years, experts claim that different kinds of studies are biased to support one viewpoint over the othe r. The articles â€Å"Living Wage Ordinances and Wages, Poverty, and Unemployment in US Cities,† by Benjamin Sosnaud, and â€Å"The Effects of Minimum Wages on Employment,† by DavidRead MoreThe Federal Minimum Wage Should Have Negative Effects On Employment1893 Words   |  8 Pagesfederal minimum wage. Stacey Brundson, a single father of two, said he has donated blood to bring in extra cash just to help his family afford the basics. â€Å"Sometimes there’s not enough in my paycheck to make it through the month,† said Brundson (qtd. in Harris). Although numerous conservatives and business owners believe that a modification in the current federal minimum wage will have negative effects on employment, on low-skilled workers, and on consumer’s prices, increasing the federal minimum wageRead MoreCritique : Minimum Wages And Employment1336 Words   |  6 Pages Final Project Part One Kevin Nozari Embry-Riddle Aeronautical University MBAA 523 October 1, 2015 Critique: Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania In this paper, we will be critiquing a research that was performed by Krueger D. Card. We will critically evaluate the researcher’s work by indentifying strengths, weaknesses, areas to improve, and possible extensions of the research. Other areas that will be discussed are researchRead MoreThis Study Focuses On How The Minimum-Wage Serves As A1162 Words   |  5 Pages This study focuses on how the minimum-wage serves as a place for prime age workers, those between the age of 25 and 54, to get stuck. For the purpose of this study, minimum-wage was established as anyone earning less than or equal to $1.00 above the 1997 wage of $5.15, as adjusted by inflation. While minimum-wage was developed as a floor for wages, this study asserts that a worker with one child will be nearly $3,000 below the poverty line even if they work full-time, full-year. It was concludedRead MoreDoes the Minimum Wage Increase the Standard of Living for Low-Income People?1391 Words   |  6 PagesThe United States has maintained a minimum wage which was enacted since 1938. At the present time there is much political debate in regarding to increase the minimum wage to levels at the federal level, state, and local levels of government across this country. There are various theories regarding the minimum wage. Some believe it would circulate money into the economy faster which would negate and negative effects on employment, or even improve unemployment rates. Others point to the economic theoryRead MoreMinimum Wage Should Be Increased1057 Words   |  5 PagesRebecca Nevins Meredith Sides English 101 16 November 2015 Minimum Wage Should Be Increased Congress enacted the federal minimum wage in 1938, during the Great Depression. Congress had two goals; keeping workers away from poverty and boosting consumer spending for economic recovery. Today, there is a debate, whether we should increase the minimum wage again. Increasing the minimum wage is useful for several reasons. First, the current minimum wage has failed to keep up with inflation. Second, a higherRead MoreEssay on The Minimum Wage Should Be Increased1048 Words   |  5 Pagesfederal minimum wage in 1938, during the Great Depression. Congress had two goals; keeping workers away from poverty and boosting consumer spending for economic recovery. Today, there is a debate, whether we should increase the minimum wage again. Increasing the minimum wage is useful for several reasons. First, the current minimum wage has failed to keep up with inflation. Second, a higher income level reduces employee turnover and increases efficiency and ultimately, raising the minimum wage d oesRead MoreThe Economic Effects Of Minimum Wage1322 Words   |  6 PagesThe minimum wage was introduced for the first time in the 1890s in Australia and New Zealand and since then it has been a crucial component of public policy. It entered British market in 1909 and approximately 30% of U.S. states in the following two decades. After America’s introduction of the federal minimum wage law in the Fair Labour Standards Act in 1938, minimum wages have spread to a large number of industrialised countries as well as to some developing countries. Consequently, by the 1990sRead MoreEssay The Effects of a Change in the Minimum Wage1431 Words   |  6 PagesThe Effects of a Change in the Minimum Wage In 1938, the Fair Labor Standards Act was passed and ever since, the United States has required that all firms that do at least $500,000 worth of business per year pay their workers a minimum wage (â€Å"Handy† n.pag.). Because it affects so many workers in so many different aspects of the economy, the minimum wage plays a big part in the cost of labor and how firms deal with those costs. A change in the minimum wage, which would seemingly affect onlyRead 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 wage increase