01 Mar. 2016. The American Action Forum believes that raising the minimum wage can do more harm than good and hurt the people it’s supposed to help. Job loss in the millions would happen if the wage was raised from $7.25 to $15. People in poverty before the increase would have trouble finding jobs because companies would have to have less positions to counter the wage raise.
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.
The federal minimum wage is $7.25; a person who works for minimum wage “40 hours a week, 52 weeks a year...with no time off and no sick days” breeds an income of just $13,926 after deductions, according to Source 2. That figure is ghastly. For many, $13,926 could scarcely cover rent, much less other necessities like food and clothes or obligatory monthly expenses like student loans and car payments. To afford childcare looms impossibly. That someone working forty hours a work could be so securely bound by poverty is unbelievable and unacceptable.
Clearly, there are two sides to this situation, and people may argue these business owners currently have the upper hand as they are allowed to pay their workers as low as $7.25 an hour according to the federal minimum wage policy. That may be true, but it can simply increase if these workers revolt against these business magnates by not working forcing them to increase their salaries. It may cause them not to make money for a few weeks during these riots, but would benefit them in the long run. The essence is, Americans should increase the minimum wage and that it should increase because it would prevent workers living under minimum wage from changing their lifestyle to adapt to the working conditions and would decrease the overall poverty in the
The minimum wage in the United States is set by the U. S. Labor law that employers must pay workers $7.25 per hours. Since 2017, in eight states, they have increased the minimum wage to $11.50 per hour. Across United States every state has different minimum wage standards. The State of Illinois has minimum wage set to $8.25 per hour (University of California). Over the past five years, current prices on houses, apartments, and condos have increased dramatically.
Preventing Minimum Wage Speech Overview: General Goal: To persuade - to create, change or reinforce attitudes, values, beliefs and/or behaviors. Specific Goal: By the end of this speech my audience will believe that minimum wage in America should be raised all around the nation. Introduction: (This is where you start talking) Attention Grabber: How many of us have worked a job that pays $7.25 - $7.50 a hour? Most minimum wage workers are under the age of 25. Relevance Statement: Most of us will work at a job that pays minimum wage at some point in our life.
If they raised the price than the people who make minimum would have to make more money so they would have to work two jobs making they spend less time with friends and family. Raising minimum wage would do absolutely nothing because it 's like if you had 2 dollars and something cost 4 you work a week get 20 dollars and then have 22 you can buy it but then the price raises to 26 dollars and so on. Finally people suggest the fact that even if you raise minimum wage than not all people would still want a job and it would be harder to find a job making the poor population either rise because of people getting fired or get better because of people finding
Conventional economic theory predicts that a rise in the minimum wage leads employers to reduce employment in a competitive equilibrium (Stigler, 1946). However a growing number of studies indicate that the relationship between minimum wage and unemployment is not necessarily always negative (Katz and Krueger, 1992; Card, 1992 a, b). Before discussing the impact of the national minimum wage legislation in South Africa, let us first understand the concept in terms of the economic theory. ECONOMIC THEORY The labour market includes workers and firms as participants. Workers supply labour to firms in exchange for wages, and firms demand labour also in exchange for wages.
The current minimum wage in California is $11 and will increase by a dollar every year until 2023. By 2023, the minimum wage in California will be $15 for business with 26 employees or more. California might be the first state to have the minimum wage reach $15. As minimum wage increases in California, the cost of living will increase such as housing, food, and healthcare. Raising the minimum wage to $15 is unnecessary because a minimum wage job is not a career and will not offer health benefits.
A subsequent law was enacted by Australia, in 1896 established wage boards on which the workers and employers were represented in equal number, with the power to fix minimum wage enforceable on the employer. In 2004, China issued new regulation on minimum wage to solve the problem of wage inequality. In Brazil and Argentina it has been revitalized to help reverse the decline in wage of low paid workers since the early 2000s (ILO: Global Wage Report 2008/09 Geneva, 2008). In countries without a fixed rhythm of adjustment, for example in Russia, Nigeria, Cambodia and Malaysia, minimum wage increases in arbitrary way according to specific economic, social and political conditions in the country. Fapohonda et al (2012) describe minimum wage not only as the smallest hourly wage that an employee is paid as mandated by federal law but also as a social protection which requires the effort, commitment and collaboration of all stakeholders.