Introduction Minimum wage is the lowest hourly rate an employer can pay an employee for hours worked. The topic of raising the minimum wage is a sensitive issue for many people. The livelihood of many relevant stakeholders will be directly effected by policies created in regards to raising minimum wage, both positively and negatively. This paper will examine the history and current state of minimum wage. It will identify the issues connected to raising minimum wage, analyze the arguments for and against, and make recommendations based on the analysis.
Step 1 What is the basic difference between salary and wages? Salary compensated employees are paid with a fix amount of money bi-weekly, semi-monthly or monthly for the work they have performed. It’s the same amount each paycheck and it doesn’t waver depending on the hours you work or do not work. It takes into consideration the vacation and sick time an employee takes off but still gives the same amount of compensation each pay period. Even though these employees work fixed hours, there are instances where they will have to devote their extra time without additional pay for time they may not have completed.
Now it is good to have a job; regardlessly, it is about the pay rate. The jobs that I have listed before are paying their employees minimum wage. Which is between $7-$10, or less maybe, depending on the state that employees lives. Living and working for a minimum wage job is not a best way to live in. It is understandable of why they have to go through this because they have to make a few sacrifices to continue going forward.
There are a lot of potential benefits for an increase in minimum wage and on the surface it’s hard to see why you wouldn’t want to increase the wage. One of the clearest to see is that an increase to the minimum wage will also increase the spending for each household during the following years. So it works to help stimulate the economy in whatever area you increase the minimum wage. Along those same lines increasing the minimum wage will lead to a decrease in poverty as well. With the decrease in poverty you will also see a decrease in government spending on welfare items because the individuals receiving the higher wage in theory will be able to pay for these services/welfare items without assistance.
One thing most of these reformers seeked was an increase in their workplaces. They were not as concerned about the monopoly factor as long as, “[...]he provided job security and adequate wages and working conditions, and passed some of the benefits of large-scale production on to consumers in the form of lower prices” (Joseph Huthmacher 13). Based on Huthmacher’s article, historians should focus more on the lower class and their thoughts, such as their real life experiences and careers, when interpreting the Progressive
Although the term “living wage” is not clearly defined by advocates, it is loosely a wage sufficient to satisfy one’s basic needs including housing, education, food, and healthcare. The main arguments for this living wage are that it is our moral duty to stop the exploitation of workers by their employers who can force them to work long hours in horrible conditions for little pay, and that society will reap benefits if the poor are better able to take care of themselves due to their higher wages. The arguments against (increasing) the minimum wage are that as things get more expensive we demand less
The author, Ehrenreich, wrote the novel, Nickel and Dimed, in order to expose the unfair community that is to work with a minimum wage job. By journaling during this experiment, the reader is able to get a one on one experience on what it is to work inside a variety of minimum wage paying jobs. Not only can a person be expected a lower pay but as well as maltreatment by the bosses as “What you don't necessarily realize when you start selling your time by the hour is that what you're really selling is your life.” (Ehrenreich 187). As discussed in the novel, people who have no choice to partake in these jobs are dragged along. Whether living as a single mother or someone without college degrees it is impossible earning as much as to pay the basic
Although Northern Laborers were given wages by the factory owners for their work, they ultimately had to pay back the factory owners for their provisions. In other words, any money that the owners gave to workers would ultimately come back to the owners when workers paid for food or clothing. Northern Laborers had the privilege of earning money, but a substantial amount of their wages were lost just so that they could have everyday provisions. As such, these workers were taken advantage of and even if they saved their money, they would not be able to do much with it as the maximum daily wage was two dollars. Buying provisions could cost as much as up to
Karl Marx has written on this issue,and has analyzed what causes these problems. Firstly, Karl Marx introduces the idea of a “wage slave” a person who primarily makes income from the work they do for others. The increase in factories also came with an increase in these “wage slaves”. The problem arose then, when it came to the corporations. In order to maximize profits the factory workers were paid minimally.
One of the pillars of American character is the idea that if you work hard and long enough you can achieve your economic goals. As the second passage brings up, a 6 hour work day means that “workers or employers will end up paying for it.” Workers will end up loosing the wages they would have earned or the employers will have to cover for it. The economic reasoning behind this idea is not sound. Some people rely on overtime and extra pay that it brings to support their families, so if that is taken away, what will they do?