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Minimum WageWhen was the last time a "value" meal from McDonalds, let alone any other fast food chain, did not cost five dollars or more? When was the last time premium gas was under a dollar a gallon? It's hard to remember, isn't it? Wouldn't it be great if everything cost a nickel, like back in the good old days? In Nickel and Dimed, Barbara Ehrenreich, explores the minimum wage and the trials one goes through trying to live off the minimum wage. She goes on to explain that many of her coworkers live in motels, which she eventually has to do, in order to live. She tells how it is virtually impossible to live comfortably working one full time minimum wage paying job. Raising the minimum
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The definition of Minimum Wage is “an amount of money that is the least amount of money per hour that workers must be paid according to the law” (Minimum wage). Minimum wage, like other laws, are used to keep the economy in line. Minimum wage laws were invented in Australia and New Zealand with the purpose of guaranteeing a minimum standard of living for unskilled workers. (Linda Gorman) Minimum wage puts a price on the services one offers. Many different principles can be used to explain Minimum wage and explore the different aspects of it. Including what minimum wage does for our economy and the current status of it.
2. History of Minimum Wage
According to Principles of Macroeconomics by
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Minimum Wage Legislation
I am going to pose the question to you the students of Sir Sandford Fleming
College, do you really want the minimum wage legislation left in affect? As
college students you are not benefiting or gaining anything from minimum wage
legislation. The minimum wage legislation requires all employees to be paid at
least some fixed given dollar amount per hour. This sounds good, but it isn't
all that it seems!
Minimum wage is an example of government intervention. The government has put a
minimum on the dollar amount that employers can pay their employees.
Unfortunately when we implement solutions like the minimum wage, it is too late
to actually fix the problem, so in
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The minimum wage was first enacted into law as part of the Fair Labor Standards Act (FLSA) of 1938. The original minimum wage applied to workers engaged in interstate commerce and the production of goods for interstate commerce. In 1938, this applied to roughly 11.0 million workers out of a total of 54.9 million workers. The minimum wage was set at $0.25 per hour. However, by 1966 the minimum wage $1.25 and applied to virtually all workers. In 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
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1. Skylar, Holly. “Raising the Minimum Wage Will Help the Poor.” Social Justice. Ed. William
Dudley. San Diego: Greenhaven Press, 2005. Opposing Viewpoints. Rpt. From “Raise the Minimum Wage to $10 in 2010.” Let Justice Roll Living Wage Campaign. 2009. Opposing Viewpoints in Context. Web. 17 Nov. 2013.
This article compares the rate of pay in 1960 to what minimum wage workers are making today.
The article discusses the minimum wage has not kept up with the current cost of living, and that it is
falling behind. A minimum wage increase would help to stimulate the economy, and stop the
diversification of the rich and the poor.
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Minimum Wage Legislation AssignmentMinimum Wage LegislationDate: November 14, 2012Student's Name: JasonClass Number: AF4-4ID Number: SBC-11-0445Professor's Name: Andy RitrcheWord count: 1302Minimum Wage Legislation AssignmentMinimum Wage Legislation AssignmentIntroduction:The mitigation of poverty is increasingly seen as a primary economic objective. Poverty creates many economic costs in terms of the opportunity cost of lost output, the cost of welfare provision associated with exclusion from normal economic activity. It can be argued that one of the roles of government is to reduce poverty, and the minimum wage law is a in a typical way that government used to reduce poverty (Sloman, 2010
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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
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Article Rebuttal: Minimum Wage
Over the years there has been much debate about raising the federal minimum wage. Some states have taken it upon themselves to set higher minimum wages than the federal minimum wage, because of the lack of action by congress. The supporters of the raising of the federal minimum wage have been more vocal lately. This is especially true since studies have shown, that the gap has grown between the wealthier population, and the middle class.
Recently President Obama, because of the lack of effort and action by congress, has used executive action to implement the raising of the federal minimum wage to $10.10 an hour for new federal contracts, effective 2015. This
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The selling point that has brought people to the United States for centuries is the American dream: Prosperity, Luxury, Opportunity, and so on. Unfortunately for many, this dream has been squandered by the receding economy of an indebted country. As inflation runs rampant, the value of the U.S. dollar decreases, lowering the value of household and business incomes. This economic recession has led many, especially those who only earn the minimum wage, to poverty. According to the United States Department of Labor, “The federal minimum wage is $7.25 per hour” (“Wage and Hour Division”). Some people believe that a solution to this problem is to raise the minimum wage; however, doing so would
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Minimum Wage in America PAGE 2
Minimum Wage in AmericaJeremy MastersNational University (ECO 203)Minimum wage laws were first seen in Australia and New Zealand around 1896, they set the legal minimums for the hourly wages paid to certain groups of workers. These laws were first seen in the United States round 1938. As of today, more than 90% of all countries have some kind of minimum wage legislation. According to Wikipedia (2008), "minimum wage law is the law which prohibits employers from hiring employees or workers for less that a given hourly, daily or monthly minimum wage." As stated in Microeconomics, a minimum wage creates a price floor (Gwartney, Stroup, Sobel & Macpherson
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Zarbab SiddiquiENG4U0 - Mr. PanwarOral EssayExtend Minimum WageHello ladies and gentleman, citizens of Canada. Today I will be speaking on your behalf as a troubled individual, who believes in the same goal as you do; who believes that minimum wage should be more than it currently is. Through the amount of time and effort and countless hours of work we put in everyday; we receive a small check which seems puny, insignificant and worthless to us by the end of the day. We cannot comprehend the understanding of why minimum wage is put to such a low standard. However through our voices and struggles, we as troubled individuals; we as people who need to support others; we as groups of
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Minimum Wage: The Bare Minimum
"They work hard every day; they stock our store shelves, wash dishes at our restaurants, clean our offices at night, care for our kids during the day...They have in common the minimum wage. And they need a raise, and as you saw, they deserve a raise" (Clinton). President Clinton made this speech on the south lawn of the White House at 10:30 a.m. on the 8th of March 2000. He argued for the minimum wage hike to go into effect. He argued for the population of the United States who worked at the federal minimum wage. But was his argument feasible? Would it be practical to raise the federal minimum wage from its current status of $5.15 an hour, to $6.15
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The first minimum wage was put in place by Congress in 1938 as part of the Fair Labor Standards Act. It was set at twenty-five cents. Since then minimum wage has continually fluctuated, and currently, it is $7.25, but Congress is now considering the Fair Minimum Wage Act (Whittner) which would, over the course of two years, raise minimum wage to $10.10 (Sherk). Adding almost three dollars to the United State’s minimum wage will most certainly have a large, positive impact on the nation. Congress should raise minimum wage because it would boost the economy, it would create jobs, and it would not be right to let people who work full time to live in poverty.
Increasing minimum wage to $10.10
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Good afternoon every one, the business area of our project is minimum wages, the specific project topic is The Positive Aspects of Minimum Wage Law.Nowadays, rent, transport fees and electricity bills are all on the rise and grassroots are difficult to maintain a decent living and have heavy financial burden on family.Also, many people criticize that some employers had more tricks to exploit workers, which drives the salaries of low-skill workers are below $20 per hour. This is an unfair remuneration and welfare of employees.In light of these, Hong Kong government enforced a law legislation to protect their income and welfare, which is minimum wage law.The Statutory Minimum Wage comes into
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It sounds simple raise the minimum wage, reward hard work, and strike a blow against the society's inequalities. It's an emotional argument that blurs out the truth and make's people forget one important economic lesson: There's no such thing as a free lunch. The minimum wage has not been increased since the industrial welfare commission raised it to $4.25 an hour. The IWC and the legislature have not agreed since that time that any additional increase is justified because of California's recession and the downward turn in the business climate. There was a measure out on this last ballot called prop 210 which passed and increased the minimum wage from $4.25 an hour to $4.75 an hour and on
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“Of course, nothing helps families make ends meet like higher wages. … And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest-working people in America a raise.” -–President Obama, State of the Union address, Jan. 20, 2015
President Barack Obama is renewing his call to raise the minimum wage to $10.10. During a speech at a manufacturing plant, President Obama proclaimed, "We should be raising the minimum wage to make sure that more workers who have been working full-time shouldn't be living in poverty
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Life Struggle on Minimum Wage
Sometimes life isn’t always as easy as getting a job, making money and paying you bills. In her fascinating book on extended essays Nickel and Dimed, Barbara Ehrenreich poses as an unskilled worker to show the struggles encountered everyday by Americans attempting to live on minimum wage, “matching income to expenses as the truly poor attempting to do everyday.” (6)
Ehrenreich gave herself three rules she had to live by and they were: 1. She could not use her education or professional skills to land a job, 2. She had to take the highest paying job offered and do her best to hold it and 3. She had to
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Minimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N. Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw 6-1b). Currently, the minimum wage in the United States is $7.25 per hour. For many years politicians and citizens have argued on what should be the minimum wage that would benefit the economy and society in general. A minimum wage was first established in 1938 to increase the standard of living of lower class workers. To discuss what is better for the country and its citizens, people have to understand what
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What would be so bad about raising minimum wage, it sounds good and all? Raising the minimum wage can hurt Americans more than it can help them. The people for raising minimum wage are people who believe that increasing minimum wage can help those people who are generally unskilled and need an income they can live on, but raising minimum wage would do the opposite and make employers have to fire people who earn minimum wage, because they can’t afford the higher wages. People need to realize that increasing the minimum wage would hurt people more than help them, because in the end increasing it would result in some people being let go because business can’t afford paying them minimum wage
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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 turnover and increases efficiency and ultimately, raising the minimum wage does not reduce employment. Even with high unemployment rates, the minimum wage is useful for the economy.
Today "the federal minimum wage" is $7.25 per hour since July 24
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With President Franklin Roosevelt’s cries for “A fair day’s pay for a fair day’s work,” the Fair Labor Standards Act established minimum wage in 1938 (Grossman). Overtime, the minimum wage has been raised in order to account for inflation (BLS 14). However, what the overall economic impact of raising the wage will be is once again a daunting and extensive question. The controversy over raising the minimum wage seems to come from often conflicting economic opinions. While raising the minimum wage is done with good intentions, critics argue that a higher minimum wage will harm those it is actually trying to help. Raising the minimum wage, while a controversial issue, will have an overall
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Increasing the minimum wage may help hard working families make ends meat. The first federal minimum wage in 1938. Started at $.25 an hour. In 1968 it reached its peak value. Since then the value has fallen thirty percent, so that today’s minimum wage of $5.15 is equal to $4.18 which is equivalent to the value in 1995 (women, 4). Some states have decided to raise the minimum wage above $5.15 an hour even though the senate ultimately sets the minimum wage. There was a push to raise the minimum wage two dollars in the next two years. The average yearly income for a person who works minimum wage is around $19,000. In the United States there are over 1.6 million minimum wage workers. Fifty
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My essay is about the minimum wage in America and how people every day suffer to get day by day with the minimum wage they get paid. Even if they have two minimum wage jobs they still can’t support their family. I also talk about why they should raise the minimum wage to at least ten dollars and I will compare the minimum wage between Michigan and other states. The history of minimum wage for 1938 to the 2013 and how it have changed dramatically throughout the years.
Many people with minimum wage jobs are usually on food stamps which helps them with some of the stress of getting paid minimum wage. But just the fact of getting paid 7.25 makes it hard for them to have a good life where they
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Should the minimum wage increased to $10.10 an hour? This has increased over the years and everyone has their opinions. Those who are in favor of increasing minimum wage to $10.10 believe that more money will decrease poverty and the unemployment rate. Those who oppose the increase in the minimum wage, believe that it should not be increased and should stay the same, because it will cause businesses to close up because they are not making enough money to survive in the economy An increase in minimum wage would have to make the employees work harder to make increase sales of the business. I believe that the minimum wage should not increase to $10.10.
Raising the minimum wage would affect
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Living in a nice home, a good neighborhood, and having nice cars is what most people think of as part of the American Dream. How are you supposed to get there though? Unless you're going to win the lottery you’re going to have to work in some form. Achieving the American Dream while earning minimum wage may take a person longer but it is still attainable. Through higher education or hard work individuals can achieve a higher standard of living.
What is minimum wage? Minimum wage is the lowest hourly rate (dollars per hour) that employers can pay their employees. According to minimumwage.com Minnesota’s minnimum wage is $7.25 per hour but will be getting raised to $9.00 per hour
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WASHINGTON D.C. President Barack Obama has shouted on Congress to raise the combined minimum wage, the centerpiece proposition at the State of the Coalition address that concentrated on commercial inequality in America. Pointing out that the present minimum of $7.25 is nearly 20% lower in real paying manipulation than it was 25 years ago, he impelled legislators to prop a bill that should hold the nationwide rate to $10.10. We additionally have to do extra to safeguard our economy distinctions the dignity of work and that hard work pays off for all of our citizens. Americans overwhelmingly concur that no one who works maximum period ought to ever have to raise a relation in
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The Effects of a Higher Minimum Wage
When I was eleven years old my parents told me that they could not afford to buy me new school clothes that year. So, in my desperation for some new school clothes I started working. I did odd jobs on farms for family and friends, as well as babysitting. I worked that whole summer of my 6th grade year, and I continued to work every summer up until my senior year in high school when I started to work full-time. I started helping pay my parents rent when I was thirteen and bought most of my own food as a young adult. I bought all of my cars, and I am paying for my own school. So you might ask "why were we so poor? Was it because you had deadbeat parents
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Narin GopaulProfessor FlanaganEnc11018/4/2013It's the year 2014, and we are in the state of the financial crisis which is still being feltacross the nation by the majority of Americans. Many Americans who have worked onminimum wages are struggling to live on a salary that is below the poverty threshold. In 2012, the U.S census posted that in a family of three; their income is 18,552, (U.S Census). In most case, one member of the family is working on a minimum wage salary which is below 18,552, (U.S. Dept. of Labor). It has been almost a five years since congress has raised the minimum wage (Huff Post). Throughout my argument, I will share my thoughts as wells as facts on why congress should
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The life of many Americans is one day on repeat. We wake up, prepare for our day, and then head off to our jobs that never seem to pay enough for our living needs. No matter how hard the average worker works, he/she can’t seem to make ends meet. Why is this? It would be logical that these hard working Americans that spend day after day at their job would be thriving; however, in most cases, it is the opposite. Despite the amount of time and effort that goes into a daily job, these workers are making minimum wage and are fighting to survive in the current economic state. It is close to impossible for most families to survive without spending paycheck-to-paycheck, as most do. There is a
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"Plain and simple, Congress must act to meet the needs of our constituents. We can do that by strengthening families and increasing the minimum wage."
-- Paul Tonko
Poverty continues to grow in America. The average minimum wage in the United States is $7.35 an hour- far too low in today’s society. Key expenses, for example, gas and housing prices, have gone up significantly since the minimum wage was last changed in 2007 (Wagner 52). The laws creating the minimum wage were intended to improve the standard of living and decrease poverty. Raising minimum wage is a vital step in decreasing poverty and giving every family the opportunity to survive and succeed. Millions of hard
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want to provide our families a decent standard of living. What is our second goal? Our second goal is likely the desire, and ability to enjoy our job. The reason we should care about this is we are spending forty hours a week at our workplace. I am to researching this topic to see if the minimum waged should be raised. The current minimum wage for the United States of America is seven dollars and twenty-five cents an hour. Is this enough to support a family? Through the research that I have done the past few weeks I will look more in depth on the subject of the minimum wage. I desire to look at the benefits, as well as the consequences of raising the minimum wage. My goal is to formulate an
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As of February 2014, there are approximately 155 million civilians in the United States work force . Even with a minimum wage established by the federal government, working class civilians that work under the federal minimum wage of $7.25 are struggling with day to day life, including mortgage payments, food payments, and children. President Barack Obama addressed the many individuals and their families working full time under the federal minimum wage in the poverty level during his annual 2014 State of the Union Speech. President Obama made a proposition during the speech to increase the federal minimum wage to $10.10, a $2.85 increase from the current federal minimum wage of $7.25
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The national minimum wage was introduced in the UK in April 1999 by
the Labour government. Essentially it formed a major part of their
manifesto as it convinced the average population that Labour were
beneficial for everybody. However, they would argue against classical
economics and suggest there are wide spread benefits to be gained.
The main argument is that the NMW would alleviate poverty across the
country. This is an equity issue that has constantly concerned society
and would go some way to redistribution of income. It is a social
belief that if every one is 'well off' and lives above the poverty
line, there will be positive social
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A sensitive topic for many Americans is their income. Many people’s income relies on minimum wage. In 2012, 3.6 million people received an hourly pay at or below minimum wage. There is an ongoing debate in government as to what the minimum wage should be. Stuck at $7.25, Obama has suggested raising the minimum wage to $9.00. Depending on a person’s perspective, raising minimum wage could be positive or negative. Minimum wage has the ability to change lives, and change the economy. Small businesses and unemployment, teenage demographics, and the cost of civilian goods would be most affected.The only mystery is whether things would change for the better or for the worse.
Many areas could be
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Pros and Cons of Raising the Minimum Wage
When you picture a minimum wage worker, who do you picture? Do you see a sixteen year old, a middle-aged mother, a college graduate, or even a senior citizen worker? In September of 2013, California governor Jerry Brown signed a new bill into act that would cause the California minimum wage to rise from the current $8.00 and hour to $10.00 and hour in increments over the next three years. The minimum 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
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The Effect of Minimum Wage on the American Economy
A sensitive topic for many Americans is their income. Many people’s income relies on minimum wage. In 2012, 3.6 million people received an hourly pay at or below the national minimum wage. There is an ongoing debate in Congress as to what the national minimum wage should be. Currently at $7.25, Obama has suggested raising the national minimum wage to $9.00. Depending on a person’s economic perspective, raising minimum wage could be positive or negative. Minimum wage has the ability to change lives. Small businesses and unemployment, teenage demographics, and the cost of civilian goods would be most affected.
Many areas could be affected by
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The concept of minimum wage is a complex economic program pitting an employee's benefit of a living wage against an employer's hardship of forced policy. In this critical analysis of the minimum wage, each side presents an argument for or against the program. This examination provides an insight into whether minimum wage serves as a social and economic safety net or a welfare crutch with crippling effects for those affected. The presentation of facts and figures explores wage requirements for employment of adults versus minors, as well as, displacement of workers based on rising wages. An increasing deficit between the minimum wage and the national poverty level will also be covered with a
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The Effects of a Change in the Minimum Wage
In 1938, the Fair Labor Standards Act was passed and ever since, the United States has required that all firms that do at least $500,000 worth of business per year pay their workers a minimum wage (“Handy” n.pag.). Because it affects so many workers in so many different aspects of the economy, the minimum wage plays a big part in the cost of labor and how firms deal with those costs. A change in the minimum wage, which would seemingly affect only workers, can actually be felt sometimes all the way down to the consumer, who might end up paying for it in the end—unless the firm finds another way to pay for the mandatory raise for all its
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The federal minimum wage has not been increased since the enactment of the Small Business Job Protection Act in 1996. Would increasing the minimum wage force the hand of small businesses? Would small businesses succumb to hiring less qualified employees (welfare recipients) so they can receive tax breaks and deductions for property leases? How should small business owners handle an increased minimum wage? What additional changes would small business owners make with the increase to the minimum wage law?The Small Business Act states that a small business concern is "one that is independently owned and operated and which is not dominant in its field of operation." The law also states that in
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If a person were to ask any worker if he or she would like a raise, the response would be a resounding yes. However, if one were to ask that same worker if he or she would like to be fired or have their hours of work reduced, then that worker would likely say no. The effects of minimum wage are centered on exactly these points. Minimum wage should be eliminated.The federal minimum wage was instituted in 1938 as a provision of the Fair Labor Standards Act (FLSA). It was originally set at $0.25 per hour, about 40 percent of the average manufacturing wage at that time. Over the next forty years, the legal minimum was raised periodically, roughly in accord with the movement of market wages
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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 moment with a recession occurring, minimum wages have not brought any benefits to those working for such a limited pay. In fact, it has affected an amount of factors rather than actually keeping the overall population out of impoverishment. Although
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Picture this: You are a single parent of two, you work 40 hours a week plus occasional overtime at a minimum wage paying job, you struggle to put food on the table to feed your family, and then you receive a call from the bank saying that your home is being foreclosed. This is the situation faced by thousands of Americans every year due to low income and wealth inequality. The federal minimum wage (FMW) as of April 2014 is $7.25, which is not enough to keep a family of two above the poverty line. There are certain questions on this topic that should be addressed, such as why is poverty and wealth distribution an issue in the United States today? Should the FMW be raised and why? How would
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well as their interaction with narrative language (Kress and Van Leeuwen, 2006).Through studying images and language collectively, Kress and Van Leeuwen (2006) combine Critical Discourse Analysis and Multimodal Discourse Analysis to examine how media constructs a version of reality.
One recent political issue which has been represented differently in newspapers of distinct political inclinations is the US minimum wage hike. This paper will compare two newspaper cuttings on Obama’s proposal of minimum wage hike and the Republicans' banning of it. Since both news clips consist of images and words, I am going to discuss them in terms of Multimodal Discourse Analysis (MDA), then Critical
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Small businesses are hurt by minimum wage hikes. This hypothetical situation describes how the minimum wage kills jobs. Consider a small community clothing store with 50 customers a day for 360 days at $20 spent per customer. Total revenue per year for the business is $360,000. This seems like a lot of money. How could a small hike in minimum wage hurt when the company makes this much money? Well we still need to deduct the costs of doing business. This clothing store has 10 employees all earning minimum wage (for this example is $8 per hour) working 2000 hours a year. This makes labor costs for this small business $160,000. Other expenses incurred by the business are: cost of
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Argumentative EssayTopic 3. Congress should raise the minimum wage to $8.00Use the although…because thesis shown on page 276.The although clause will be your last mention of your opponents' viewpoint.Feel free to use a problem-solution order for your argument based on effects you have already analyzed in your causal analysis essay.MLA Format: Have at least 5 reliable sources that you found by using a college library database like Lexis-Nexis, Academic Search Premier, or Proquest. One of your sources may be a personal interview. Create a Works Cited page at the end of your paper, following the guidelines in Chapter 14 for MLA and following the attached handout on using MLA format to
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Source: http://www.thedailybeast.com/articles/2014/02/20/democrats-can-t-accept-the-trade-off-of-a-job-killing-minimum-wage.htmlExtract 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 would like to have its cake, eat it too, and claim that the cake has zero calories.Tuesday, the Congressional Budget Office released its analysis of The White House's proposed $10.10 federal minimum wage, giving credence to Republican claims that the
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President Obama opened his State of the Union address with the dilemma of service employees earning minimum wage in the United States, “Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line…that’s wrong” (qtd in State of the Union Address 2013). The debate over whether or not the minimum wage should be raised has carried on for years between Democrats and Republicans. While many Republican politicians feel that an increase in minimum wage would be devastating to the economy in terms of job security and , in fact many fast-food and retail workers earn below the poverty level and rely on public assistance. An
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families are forced to live under circumstances of material and social deprivation which make it very difficult for families to be able to afford the basic necessities of life such as food, clothing and housing (Kekkonen, Raphael 2010). Studies have shown that suicide rates and the onset of many diseases such as diabetes and heart disease is significantly more prevalent amongst low income Canadians than there more affluent counter-parts. One policy that has often been implemented by governments as a means to alleviate poverty and to increase income equality is the minimum wage policy. There has been an ongoing debate over whether increasing the minimum wage is an effective policy to alleviate
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In Malaysia, in the private sectors, the wages of an employee had always been a matter of consensus between an employer and an employee depending on the elasticity of demand and supply in the labor market. It is not subjected to any government or legislative intervention, thought de facto minimum wage may exist as a result of custom and extra-legal pressure from unions. This matter which may be agrees upon between employer and the employee. However, the Parliament had recently passed new laws to impose the minimum wages of an employee.
Background to Minimum Wages in Malaysia
The National Minimum Wages initiative for Malaysia was announced by the Prime Minister in his Budget