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Minimum Wage Case Study

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In the year 1938 President Franklin Delano Roosevelt established the federal minimum wage of $0.25, an equivalent of $4.11 in modern dollar value. The general idea was an increase in wage would mean that employees started to earn a lot more money so much, that they were able to buy additional products and services. Business whose services and products are now being purchased earn money. These business now are able to hire more people, repeating the circle. Since 1983 congress has raised the minimum wage 22 more times to encourage economic growth. With the gap between the rich and poor ever growing and the cost of living on the rise many people agree that it’s time to raise the minimum wage again. Many people agree with the increase in pay, …show more content…

Even though 85,000 new jobs would be created because of an increase more jobs would be lost. The increase could also inject $22.1 Billon into the economy helping the whole county not just the individuals who earn minimum wage. Because of the strong public opinion many different groups and politicians have tried to raise it again. The closest to succeeding so far has been the Harkin-Miller campaign to raise the minimum wage to $10.10. Senator Harkin and Representative Miller attempted to raise the minimum wage three times. On their third attempt to raise minimum wage, they cultivated the support from President Obama. Their odds were good but, lost by four votes because of a republican-led …show more content…

Assume that there is a family who is terrible at planning and saving and struggle with the amount that they make from their minimum wage jobs. The new minimum wage is establishing and for the first time they don’t have to worry about paying bills or feeding their children. They start to enjoy their life. A few months go by and they begin to worry again because, the price of necessary essentials that they need become more expensive. Some people may get another job to help stabilize their bank accounts others just keep the job that they have and slowly slip into poverty The companies that they work for are not so lucky after paying the higher minimum wage to their employees, after all the hours that their loyal employees willingly sign up for they have to fire some. Most likely then newly-hired teens that just got out of training. Contributing to a high teen unemployment rate, something that has just started to

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