The Benefits Of Raising The Minimum Wage

808 Words4 Pages
In the year 1938, the federal government inaugurate a law called the “Fair Labor Standard Act”. The first time employers were legally required to pay their workers for overtime in certain jobs. The United States of America first minimum wage was $0.25 an hour. After the creation of social security, President Theodore Roosevelt saw minimum wage as an important piece of the new deal (Should). Currently, the federal minimum wage is $7.25 an hour, but there is a proposal of raising the minimum wage to $15 dollars an hour (Sessions). Many people are with or against the raise of minimum wage, should the United States of America raise the minimum wage? Opponents say that raising the federal minimum wage would would increase the amount jobs created, and also increase economic activity. The economic institute states that increasing the current federal minimum wage of $7.25 to $10.10 would create approximately 85,000 jobs and add $22.1 billion net into the economy (David). Business analysts and financial experts from the Federal Reserve Bank of Chicago concluded that by increasing the federal minimum wage would also increase accumulated household spending by $48 billion through the year boosting job growth and boosting GDP, short for gross domestic product. (Daniel) In 1994, economists David Card, PhD and Alan Krueger, PhD, conducted a study comparing employments in the fast food industry in Pennsylvania and New Jersey. Which New Jersey had raise the minimum wage by 80 cents while

More about The Benefits Of Raising The Minimum Wage

Open Document