Pros And Cons Of Minimum Wage
The Minimum Wage Debate
Business Ethics:
The Minimum Wage Debate
Minimum wage is defined as the lowest amount that employers can legally pay their workers per hour of labor. Most states have laws in place to enforce the minimum wage; those that do not are subject to the federal minimum wage of $7.25. There are both benefits and drawbacks of this type of policy. Many supporters of a minimum wage believe it increases the standard of living and reduced poverty. Those that oppose a minimum wage believe it will increase unemployment and harms unskilled laborers.
Introduction
The Fair Labor Standards Act, passed in 1938, mandated a federal minimum wage that now applies to most work and most workers, in the United States. Originally the wage was set at 25 cents, the minimum wage has risen occasionally since 1938 to its current hourly level of $7.25, where it has remained since 2009. When the minimum wage was roughly half the average wage, in the late 1960’s, full-time, year round minimum wage earnings for one worker lifted a family of three from poverty. Today, a minimum wage worker lives on $3,000 less than the poverty line – and the …show more content…
It also stimulates consumption, by putting more money in the hands of low-income people who spend their entire paychecks. Minimum wage increases the work ethic of those who earn very little, as employers demand more return from the higher cost of hiring these employees. It decreases the cost of government social welfare programs, increasing incomes for the lowest-paid and encourages people to join the workforce rather than pursuing money through illegal means. The minimum wage also encourages efficiency and automation of industry and removes low paying jobs, forcing workers to train for, and move to, higher paying jobs (Fox,
Business Ethics:
The Minimum Wage Debate
Minimum wage is defined as the lowest amount that employers can legally pay their workers per hour of labor. Most states have laws in place to enforce the minimum wage; those that do not are subject to the federal minimum wage of $7.25. There are both benefits and drawbacks of this type of policy. Many supporters of a minimum wage believe it increases the standard of living and reduced poverty. Those that oppose a minimum wage believe it will increase unemployment and harms unskilled laborers.
Introduction
The Fair Labor Standards Act, passed in 1938, mandated a federal minimum wage that now applies to most work and most workers, in the United States. Originally the wage was set at 25 cents, the minimum wage has risen occasionally since 1938 to its current hourly level of $7.25, where it has remained since 2009. When the minimum wage was roughly half the average wage, in the late 1960’s, full-time, year round minimum wage earnings for one worker lifted a family of three from poverty. Today, a minimum wage worker lives on $3,000 less than the poverty line – and the …show more content…
It also stimulates consumption, by putting more money in the hands of low-income people who spend their entire paychecks. Minimum wage increases the work ethic of those who earn very little, as employers demand more return from the higher cost of hiring these employees. It decreases the cost of government social welfare programs, increasing incomes for the lowest-paid and encourages people to join the workforce rather than pursuing money through illegal means. The minimum wage also encourages efficiency and automation of industry and removes low paying jobs, forcing workers to train for, and move to, higher paying jobs (Fox,