Preview

Minimum Wage in the United States

Powerful Essays
Open Document
Open Document
2548 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Minimum Wage in the United States
Minimum Wage
In the United State

U.S. Minimum Wage

A minimum wage is the lowest hourly, daily, or monthly wage that employers may legally pay to employees or workers. The debate over minimum wage in the United States has been ongoing for over 100 years. It is a hot topic in labor, human interest, and especially in economics. Is the minimum wage too low? Is it too high? Should we have one at all? Does having a minimum legal wage help those who it is intended to help, or does it actually make them worse off? Theses questions are asked on a daily basis by interested parties. While there may not be one definitive correct answer, there are compelling arguments on both sides of the issue, and those who represent their “side” are passionate about their opinions. This is one of a few social topics about which people are generally not indifferent.

Much of the adult workforce in the United States has worked a minimum wage job at some point in their career, so we can easily relate to the challenges that face today’s minimum wage workers. This paper is not intended to solve the debate over minimum wage, nor will it attempt to persuade the reader in one direction or the other regarding what should be done concerning minimum wage. The pages that follow will present a brief history of the minimum wage debate in the United States, and then present some of the arguments offered by both sides of the debate.

A Brief History of Minimum Wage

Although New Zealand was the first country to formally enact minimum wage legislation in 1896,[i] the United States was one of the first major industrialized nations to set a national wage floor for their workers. For decades during the industrial revolution, workers in the United States endured work environments that consisted of long hours, dangerous working conditions, and low wages. Small movements to develop a national minimum wage by labor unions and activist groups were met with predictable resistance from



Cited: [viii] Sowell, Thomas (2007-04-02). Basic Economics (3rd Edition): A Common Sense Guide to the Economy pp. 210-221 [ix] “The Wages of Politics” [xiv] Wellington, Alison J., “Effects of the Minimum Wage on the Employment Status of Youths: An Update” Journal of Human Resources, Volume 26, no. 1 [xv] Neumark, David; William L Washer (2008) [xvi] Fuller, Dan: Geide-Stevenson, Doris (2003). “Consensus Among Economists: Revisited” Journal of Economic Education 34

You May Also Find These Documents Helpful

  • Satisfactory Essays

    References: McConnell, C. R., Brue, S. L., & Flynn S. M. (2009). Economics: Principles, Problems, and Policies (18th ed.). New York, NY: McGraw-Hill/Irwin.…

    • 530 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    This source has given me more insight to the controversial debate of minimum wage. It made me realized that by increasing minimum wage we would require the middle class to pay less for the lower class standard of living, which would be aiding society. A Con would be how it might cause an unpredictable inflation within the nation, and a repeat of the great depression might occur. Overall, this article haven’t changed my view of minimum wage; it only strengthens my already adamant opinion that minimum wage should increase in the United…

    • 1685 Words
    • 7 Pages
    Good Essays
  • Good Essays

    rogerian paper-minium wage

    • 1015 Words
    • 3 Pages

    In President Obama’s 2013 State of the Union address, Obama advocated for increasing the federal minimum wage to $9 per hour. The timing of Obama’s speech comes at a time when income inequality has become the biggest economic issue in the United States of America. During the Great Depression, The United States of America designed a minimum wage as part of the Fair Labor Standards Act. Since its inception, the government required minimum wage has grown from 25 cents to $7.25 per hour. Unfortunately, the erosion of consumer buying power has decreased at a compounding rate and in America’s consumerist society the expected standard of living has also gone up with inflation. In response to rising inflation with the Federal minimum wage, states should be allowed to make the decision on price floors such as minimum wage.…

    • 1015 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Minimum Wage Thesis

    • 754 Words
    • 4 Pages

    Since September 1, 1997, nine years have passed without an increase in the federal minimum wage of the United States of America. Democrats and Republicans are still fighting on a minimum wage increase proposal wherein the current $5.15 rate would rise by $2.10 over three years in three increments, reaching $5.85 in January 2007, $6.55 on June 1, 2008, and $7.25 on June 1, 2009. Despite of opposed positions concerning this issue, raising the federal minimum wage would promote the wages of millions of workers, enhance the lifestyle of low-paying workers, and lead to the end of…

    • 754 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Minimum wage is a topic that is always being discussed and debated over. One reason that this subject is so popular is because everyone who has a job is affected by the result of the wage. Some believe that the minimum should be raise to at least $9, while others strongly believe that the raise in wages will disturb the state of the economy. In the articles I have selected the pros and cons of raising the minimum wage are clearly stated. Some of the texts are editorial articles, and scholarly articles that have to do with the raise in the wage and others options on the subject.…

    • 625 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    When it comes to the minimum wage, there are several debates on whether it should or shouldn't be raised. It may look like it is a simple problem to solve, but it isn’t. An increase in the minimum wage wouldn't totally help the ones who ask for it, but could lead to a series of consequences that would impair, not only them, but all of us. Firstly, raising the price of something reduces the demand for it — as the price charged will be above the equilibrium point — and hence leads to a surplus of the good or service supplied.…

    • 448 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Minimum Wage Thesis

    • 542 Words
    • 3 Pages

    The minimum wage was designed to create a minimum standard of living to protect the health and well-being of employees. Others have argued that the primary purpose was to aid the lowest paid of the nation's working population, those who lacked sufficient bargaining power to secure for themselves a minimum subsistence wage” (law.Cornell.edu). Minimum wage laws and many other labor-related laws weren’t enacted purely because a group of ‘liberal socialists’ wanted to stick it to profitable businesses. There was public call for action about the lack of bargaining power workers had with businesses, much like what we want out of our action plan. Laborers were not being adequately paid for the quality of their work.…

    • 542 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Economics- Minimum Wage

    • 604 Words
    • 3 Pages

    Minimum wage was first instituted in Australia and New Zealand. This establishment of a required compensation was in response to bitter and frequent strikes. In 1912, minimum wage was installed in Massachusetts for women and children due to the sweatshop working conditions and regulations. In 1923 talk of minimum wage arose but was shot down my Supreme Court because it conflicted with a worker’s right to set his own price for labor. The Fair Labor Standards Act was derived in 1938 by president Franklin Delano Roosevelt in correspondence to his “New Deal”. FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the United States. According to FDR the labor standards act was, ''the most far-reaching, far-sighted program for the benefit of workers ever adopted in this or any other country”(FDR). In 1938, minimum wage was set at $0.25 per hour. Since July 24, 2009 the federal minimum wage is $7.25 while, many states have set minimum wage laws in accordance to the standard of living in the state.…

    • 604 Words
    • 3 Pages
    Good Essays
  • Good Essays

    During the current problem in the United States and the argument of raising or keeping the minimum wage payment, it brings attention to the workers and big corporations. Many thoughts on the cost of living with a higher minimum would make the cost of living boost to the point where it’s not affordable to the average citizen. Raising the minimum wage could crush small businesses and turn eight employees at a chain restaurant to four employees due to the insufficient funds to pay the other four. Increasing the minimum wage will hurt the United States in more ways than citizens think.…

    • 805 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Minimum wage has been a controversial and highly debated topic since it was first introduced during the 1930s in the United States. Today, most of the world’s countries have some type of minimum wage. In this paper, I will answer questions as to why was minimum wage introduced in the first place? Which country had the world’s first minimum wage? Where is minimum wage going in the future? What affect does minimum wage have on unemployment rate? Also, this paper is going to explain the history of minimum wage in the United States and around the…

    • 97 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Minimum Wage Report

    • 1812 Words
    • 8 Pages

    Minimum wage has helped shape our economy and nation as it is today. In the United States, we have two different types of minimum wage, federal and state. But what is minimum wage? “Minimum wage is the lowest hourly rate at which most employers may legally pay their workers” (“Federal Minimum Wage”). The federal minimum wage is the government’s minimum wage, but each state also has their own minimum wage. “The first federal minimum wage was legislated to boost wages to ease the hardship of workers and increase the consumer purchasing power needed for job creation and economic recovery” (Berlatsky 79). One of the most controversial issues in today’s world is if the minimum wage should be raised or not. One of the lesser known issues is…

    • 1812 Words
    • 8 Pages
    Good Essays
  • Good Essays

    The issue of minimum wage in the United States of America has been turmoil in the recent past and up to this date. Minimum wage is the lowest amount permitted by the law or by a particular agreement such as that of the labor union. The concept of the minimum wage was established in 1938 by the federal government. The law was called the Fair Labor Standards Act and it also indicated the initial time that employers were legally required to pay his employees overtime pay for certain jobs. During that period, the law was passed the first minimum wage was $0.25 and it later on increased as time progressed. The current minimum wage is $7.25 per hour. However, over the recent past, the working class in America have been complaining about this amount and demanding it to be raised. Many political bodies have tried to give the appropriate responses to this challenge but have borne no fruits. The increase in the wages will enable the citizens to meet their daily needs more efficiently. Hiking the minimum wage will increase not only…

    • 1892 Words
    • 8 Pages
    Good Essays
  • Good Essays

    In recent debates about remuneration, some controversial issues that have been brought up are about the federal minimum wage, and its influence on society. On one hand, some claim that the federal minimum wage is to low, and in fact, needs to be raised so families can earn a living wage, but also help the poor, promote job growth, support workers, and decrease prices on many goods. One advocate of this view is Aaron Pacitti of The Huffington Post who asserts that “Raising the minimum wage is good economic, good policy and good for workers” (Pacitti). Others, such as John Wihbey of the Journalist’s Resource, however, strongly disagree. Wihbey states that “the real effects of minimum-wage increases are negative: they hurt businesses, raise prices…

    • 257 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    There has been a lot of discussion regarding the increase of minimum wage across the nation. Currently, the wage is set at a low amount of $7.25 an hour. In today’s society it is almost impossible to live on only an income of $7.25 an hour especially for those who are raising a family. In President Obama’s 2013 State of the Union Address, the president proposed to raise the minimum wage to 9 dollars by the year 2015 (Luhby). A higher minimum wage would help people living in poverty by providing better means of financial stability, and it would also improve the chances of those people trying to escape poverty stricken living conditions. Another bonus to increasing the minimum wage is that it could potentially…

    • 2313 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Raising Minimum Wage

    • 628 Words
    • 3 Pages

    Of the 48 contiguous states of the United States, 10 states regularly increase minimum wage to keep up with inflation, according to the National Employment Law Project. This means that minimum wage workers in the remaining 38 states are below the poverty line. These workers rely on the government for the remaining funds to maintain a basic livelihood. More surprisingly, minimum wage workers are no longer just teenagers aiming for a quick buck over summer. Now, 3.8 million American workers, two-thirds of whom are women, rely on a minimum wage job for their daily sustenance. With these facts in mind, the age-old argument of understanding and reacting to the consequences of setting a minimum wage fall into perspective. As setting a minimum wage began the process of labor equality in Massachusetts in 1912, increasing the minimum wage regularly to keep up with inflation is priority because it can help working families, businesses and the American economy recover.…

    • 628 Words
    • 3 Pages
    Good Essays

Related Topics