The primary reason for political involvement in government intervention is the power of public opinion. When the people collectively begin to aggressively voice their concerns for a certain action to take place, it forces the hand of the government to act in response to that distress (Kraft and Furlong, 2013). There are currently nineteen states that offer a higher minimum wage than the federal mandate. Thirteen states raised their minimum wage levels on January 1, 2014, increasing the purchasing power of the lowest paid workers in each respective state, some of the increases were under fifteen cents (United States Department of Labor).
It is projected that minimum wage increases will drive consumer spending; and that can encourage job growth which will promote the support of small businesses. However, in contrast those on the other side say that small businesses just can't afford the higher wages, and it will hurt the people because they will end up having a harder time finding jobs. Coordinators in a number of other states are gathering signatures to place related actions in the polls for November 2014 (United States Department of Labor).
This public policy has also created a division among the Democratic and Republican Parties. As a policy issue the minimum wage has traditionally been viewed by those that support it usually the liberals see it as a measure designed to assist the poor with alleviating some of their impoverishment. In the meantime, for those who oppose the increase which are mainly conservatives seem to find various confidences in the notion that the minimum wage is simply unproductive (Levin-Waldman, 2011).
The most appropriate policy instrument for the issue of federal minimum wage would be regulation. The purpose of regulation is to ensure those specific requirements that have been issued by the government are being adhered to as the law necessitates (Kraft and Furlong, 2013). When the federal, state or local government regulates a policy is it expected that all who are affected by the decision comply with the guidelines that have been set. This holds to be true whether the small business or major organization agree with the regulation or not, that is not optional, if it has been regulated it must be followed. The federal minimum wage is $7.25 per hour, every employer in the nation is required to pay all of their workers at least this rate of pay regardless of their age, race, religion or any other discriminatory factor with the exception of school-age workers (United States Department of Labor). The Fair Labor Standards Act (FLSA) established minimum wage, overtime pay, recordkeeping, and youth employment criterions affecting employees in the private sector and in Federal, State, and local governments. The overtime rate of pay cannot be less than one and one-half times the regular rate of pay is for any number of hours worked in addition to the 40 hours of work in a...