America Needs A Higher Minimum Wage

1042 words - 5 pages

Nearly fifty million Americans live in poverty, and a vital reason is the diminishing value of the minimum wage. First established during the Great Depression, under the Roosevelt Administration, the federal minimum wage was designed to lift millions of American workers out of poverty. Unfortunately, it was has not developed to cope with today’s rising inflation and modern increasing standard of living cost. Since its inception , the nation wide minimum wages has risen from twenty-five cents to seven dollars and twenty-five cents per hour. Despite the increases, inflation has diminished its value returning held in 1968 . Today these would require an increase to nearly ten dollars per ...view middle of the document...

The question of how a minimum wage affects employment and worker confidence remains one of the most widely studied and most controversial topics in economics today . During the recent recession, the employment rate for woman , young people and low-skilled workers, who are more likely to be paid wages at or close to the minimum, worsened disproportionately also the over the last three years the unemployment gap based on education remains larger than ever , creating an economy unlike any time in American history . A more in depth understanding is needed of the effects of the minimum wage on the common American household . To test our hypothesis we use a diverse slate of qualitative approach and quantitative methods for our research in which we took in account, state fixed prices , region-by-time period effects, and state-specific consumer trends all over the state of Texas .We examine the effects of
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the minimum wage on all ages groups , tax brackets and gender. Our findings are consistent across all three data sets, indicating that many people are in support of an increase in minimum wage , though the economy has looked better in the last couple months are still classified as the working poor . Nearly all workers under the age of twenty- five were in support of increase in minimum wage while older workers we’re less skewed on the issue. Women, generally feel like their standard of living has gone down over the past three years while working males feel as if their standard of living has stayed the same . Also , individuals who at one point in their life who worked a minimum wage job were more likely to advocate for wage increases.
In the state of Texas many of those who oppose wage increases believe taxes are the issue. Most citizens in the the state of Texas feel that the most important dynamic in our nation’s economy are the minimum wage, taxes and jobs. These factors all correlate to disposable income and its effect on consumption . Another objection is...

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