Minimum Wage Increase Essay

1537 words - 6 pages

A heated discussion that has only gained momentum in the year 2014, is the topic of minimum wage, and whether or not it needs to be increased. Both the state and federal levels of government are trying to push for an increase in minimum wage, effectively raising the amount people can earn, particularly those who find themselves within the lower class. Once again, at both a state and federal level, they face various amounts of opposition, who either disagree with the number being proposed, or any increase in general. Considering the upcoming bill in Massachusetts legislature about increasing the minimum wage, this is an issue that could potentially affect my future, and numerous others, either in my state or the country as a whole. Thus I believe that the minimum wage should be increased, resulting in a lower poverty rating and increased stability for the working lower class.
With the election of President Obama in 2008, the minimum wage discussion was finally opened up on a national, federal level. When he came into office, the average minimum wage of the nation was seven dollars and twenty-five cents, which he hoped to rise to nine dollars. The president wants to raise the minimum wage for numerous reasons, but a primary one is one used during minimum wage’s initial inception to the United States. In 1938, President Franklin Roosevelt signed the Fair Labor Standards Act, which effetely made minimum wage twenty-five cent an hour. The reason for this action, is the same now as it was in 1938, to ensure that workers could make a decent salary on which they could live on. A recent trend is that the productivity of works has gone up, but yet their wages remain the same and corporate profit has skyrocketed up. As noted by Time’s magazine, “If the minimum wage of the 1960s had increased with productivity, it would stand at around $15/hour. If it increased with inflation, it would be more than $10/hour.” Yet, the average remains seven dollars and twenty-five cents, causing a call for change by the president, and state legislature like Massachusetts. (Khan, 2013)
Massachusetts legislature which consist of a senate and house of representative have both voted and passed very similar bills that would increase the already above average minimum wage of eight dollar. While being similar, people like Shira Schoenberg point out the differences. “For example, the House would raise the hourly wage to $10.50, while the Senate would raise it to $11. Only the Senate bill includes an economic indexing provision so that after 2016 the minimum wage would rise each year at the same rate as the consumer price index for the Northeast.” This bill has been passed before, albeit it has been combined with a policy to support unemployment insurance system. This is critical for two reasons, as that additional policy will lower businesses expenses, as driving the minimum wage up will increase it, so it balances out. This leads to the second reason, because if the businesses...

Find Another Essay On Minimum Wage Increase

The Pros and Cons of Abolishing Minimum Wage

1277 words - 6 pages Abolishing Minimum Wage Increase, decrease or abolish minimum wage; which is best for our citizens and our economy? Minimum wage was implemented to help unskilled workers to make a living wage but as time goes on the value of minimum wage has plummet. In my research paper I will provide knowledge about minimum wage such as the history, purpose, benefits and the results. I will also present the pros and cons of abolishing the minimum wage and

The Minimum Wage Should Be Increased

1038 words - 4 pages Congress enacted the federal minimum wage in 1938, during the Great Depression. Congress had two goals; keeping workers away from poverty and boosting consumer spending for economic recovery. Today, there is a debate, whether we should increase the minimum wage again. Increasing the minimum wage is useful for several reasons. First, the current minimum wage has failed to keep up with inflation. Second, a higher income level reduces employee

Living in Minimum Wage

3552 words - 14 pages ;..13Reference………………………………………………………………………………15AbstractMinimum wage is an interesting topic that is debated on a daily basis. Question as to whether minimum wage should be increase is very controversial. When we take in consideration

IB Economic IA Macroeconomics

1138 words - 5 pages Source: highlightDemocrats Can't Accept the Trade Off of a Job-Killing Minimum WageEach side cherry picks facts, but the latest offender is the White House that won't accept an estimate that its $10.10 proposal would cost jobs.When it comes to President Obama's proposed increase in the minimum wage, the White House

History of Minimum Wage

1516 words - 6 pages which was a large jump from $5.15 per hour to $7.25 per hour. This jump of $2.10 was a large increase. Through the years it is evident that the minimum wage is constantly changing. “. It has averaged $6.60 an hour in purchasing power in 2013 dollars. But it has ranged from a low of $3.09 an hour in late 1948 to a high of $8.67 an hour in 1968(Sherk, J. (2013, June 25). Currently now there is a debate to raise the minimum wage to $10.10 an hour. This

Pros and Cons of Raising the Minimum Wage

1322 words - 5 pages wage rate will go up in two separate $1.00 boosts. The first will change the rate from $8.00 to $9.00 in July of 2014, and the second increase, to $10.00, in January 2016. In this paper, I will discuss, compare, and weigh the pros and cons of the minimum wage increase in California. Governor Jerry Brown based the minimum wage increase off of the bases of inflation. Governor Jerry Brown explained that the rising costs in California have not

The Positive and Negative Effects of Raising Minimum Wage

973 words - 4 pages unemployment rate in the United States and improve the quality of living. However, there are conflicting opinions on this. Higher minimum wage would mean higher labor costs for business owners, thus making it more difficult for employers to maintain the amount of workers they have, let alone add new employees. Raising the minimum wage does not increase the value of the worker's labor; it increases the cost of the worker's labor. As a general rule the

Raising the Minimum

1636 words - 7 pages employer is required by law to pay their workers. It was first implemented in 1938 by Franklin Roosevelt, and was one of his many relief programs, during the height of the Great Depression. The purpose of the minimum wage was specifically to help keep workers out of poverty and stimulate the economy (Sonn). Back then, the minimum wage was just a meager 25 cents, but it has continued to increase throughout the years to the current federal minimum wage

A Higher Minimum Wage May Help Workers

1933 words - 8 pages minimum wage five times over the past four decades alone in an effort to keep minimum wage up-to-date. Yet, inequality between workers has risen since the last decades of the 20th century (Parks 701). For example, minimum wage is worth 31% less than it did at its peak in 1968 (Harkin 16). Recently, Senator Tom Harkin introduced the Rebuild America Act to increase federal wage to $9.80 by July 1, 2014 (Hall and Cooper 1). There will be three


1107 words - 5 pages service being sold below a certain price. A price floor creates shortages, and in the case of minimum wage, that shortage is jobs and the result is an increase in unemployment. Some economists argue federal minimum wage forces businesses to share some of the vast wealth with the people who help produce it. Businesses can exploit their workers by paying them “off the books” to avoid minimum wage, and taxes. Again this may be true that businesses

minimum wage

820 words - 4 pages According to the United States Department of Labor in 2012, “3.6 million workers earned wages at or below the federal minimum wage standard.” Minimum wage is a social problem that affects millions of people. There are several reasons minimum wage should be increased and it would affect the whole country in a more positive way. The government should increase minimum wage because the current minimum wage is not enough for living expenses, it

Similar Essays

Increase Minimum Wage. Essay

998 words - 4 pages its beginnings, the minimum wage was set at a value that was high enough for a person to live off of (Valetta 3). However, in recent years someone who works a job that pays minimum wage will fall well below the poverty line. Therefore, instead of somebody working three jobs to support their family, a large increase in the minimum wage is a necessity. In essence, I do not believe that there should be a minimum wage; there instead should be a

We Must Increase The Minimum Wage

1534 words - 6 pages and have a job and they will at least get a good amount of money in the end of every week. I think many of the jobs that pay minimum wage are usually the hard ones which that make people stress out and quit which can create a bad name for the company. Works Cited Newspaper article Jeff karoub, published September-2-2013, ( ‘’workers rally for increase in Michigan minimum wage’’ Friend interview Ali Ahemd, 20, works at McDonald’s as a supervisor Mcdonalds tells how to spend your money Timothy B. lee, published july-16, ‘’That McDonald’s budget people are making fun of isn’t cruel. It’s realistic’’.

We Should Not Increase The Minimum Wage

2383 words - 10 pages average pay of eight dollars and seventy five cents an hour. They fought to be able to have the ability to unionize, as well as receive a wage increase. Which would raise it six dollars and twenty five cents. Which amounts to fifteen dollars an hour, which would equate for a full time worker to thirty one thousand dollars a year. A proponent of the minimum wage increase is Thomas Perez, who said “Workers are feeling like they have nothing left to lose

A Minimum Wage Increase Will Stimulate The Economy

1683 words - 7 pages President Franklin Roosevelt endorsed the federal minimum wage law in 1938 while the Great Depression was at its utmost insolvent position. Because at this point in time the economy was at its lowest, the sole purpose for its enactment was to keep the majority of Americans out of poverty and increase consumer demand. Following the 1960’s, the minimum wage has had a very gradual increase to the point where it is now at a standby. At this