Change In Federal Minimum WageEssay Preview: Change In Federal Minimum WageReport this essayWhen you hear high school and college students talk about their employment experiences, all they seem to say is how they dont get paid enough. Ive even said that myself quite a few times. Well, in a way, they are right; but this statement does not only include that average student, it also includes many adults and families who are trying to live on minimum wage jobs. In todays society, this is almost impossible. An increase in the federal minimum wage is in the interest of the nation as a whole, although it will impose some costs.
This nation has finally realized that the time to raise the minimum wage is long past due. Federal minimum wage has not been raised in over 8 years, since September of 1997. This is only the second time that the minimum wage has remained unchanged for such a long period of time, the other period being between 1981 and 1990. At this time, the minimum wage is now only equal to about 32 percent of the average wage for private, non-supervisory workers. (Wendland)
One of the main defenses of not increasing minimum wage sooner, is that business, when forced to increase the salary and wage expenses, will move parts of their companies overseas or suffer a profit loss in general. Through the process of surveying and research, it is believed that a raise in the minimum wage to $7.25 an hour would benefit around 7.3 million minimum wage workers immediately. About 8.2 million employees who receive only about $1.00 above minimum wage would also see a wage increase. Keeping this in mind, it is also speculated that only about 12.3 percent of the U.S. workforce would receive and kind of wage increase. As it is, many states have already increased the minimum wage on the state level to more that the federal policys minimum wage, therefore there would not be much of a change. (Wendland)
The Economic Research Service recently published an article entitled “Bump the minimum wage in a big way: Why the economy has started reversing.” For more information read: Economic Research: Why the Economy has Started Reverse.
The article discusses the impact of the minimum wage. In the article, the authors stress, “It makes sense to reduce the minimum wage as much as possible.” According to it , the reduction can be to $7.25 a hour for women, $5.10 for men,$3.45 for younger women and$3.45 for older women. “When employers consider a company’s need for additional pay that it is doing to support workers, or any other part of an overall, minimum wage increase, it may help to consider adding and reducing the amount and type of employee hours a company must meet to achieve its current minimum wage,” they write. “The only way that the minimum wage change is likely to result in a large increase in company revenue, is through increased taxes and/or an increase in the minimum wage, which is why some people advocate reducing the minimum wage even further to $9 an hour.”
The article concludes, “We do not know how and why minimum wage is increasing. But at minimum, the real issue here may lie in the politics of making it happen and not making it happen and possibly other things like the minimum wage increase, which would impact the future growth growth of the economy.” [Source: Economic Research: Why the Economy Has started Reverse].
However after some initial research and analysis of this article’s authors concluded that the minimum wage has started to go down in the states as there is more and more of a demand for these items, the researchers decided to write the article in order to gain a sense of “where’s the slack in the economy? And where will the slack in the economy be before state spending increases, and the economy recovers after spending? And so, as the article continues, we come to understand more and more that the minimum wage is going to hurt the economy even more. We would rather not look like an economic disaster, but rather as a warning that we are at risk.”
In response to the article, the U.S. Department of Labor (DOL) has responded with an article titled , “On the Rise Of Minimum Wage and Labor Market Crises.” Here is the full text of that response that was published by that journal.
In the long run, there may be some unintended consequences to this article, especially concerning the labor market effect. Although we can argue that the cost of minimum wage rise is going to be minimal to the middle class, it will decrease to much of the high-wage job market that the U.S. is currently hurting. Therefore we are now going to look at the cost and benefits to middle class families.
We are beginning to see a sharp drop in the American minimum wage. In its recent monthly report, the Labor Department stated that the economy did not make progress after 2010, showing that the economy now shrank by 3.8 percent to 4.3 percent. These figures show that, with a wage share of 21.8 percent
The Economic Research Service recently published an article entitled “Bump the minimum wage in a big way: Why the economy has started reversing.” For more information read: Economic Research: Why the Economy has Started Reverse.
The article discusses the impact of the minimum wage. In the article, the authors stress, “It makes sense to reduce the minimum wage as much as possible.” According to it , the reduction can be to $7.25 a hour for women, $5.10 for men,$3.45 for younger women and$3.45 for older women. “When employers consider a company’s need for additional pay that it is doing to support workers, or any other part of an overall, minimum wage increase, it may help to consider adding and reducing the amount and type of employee hours a company must meet to achieve its current minimum wage,” they write. “The only way that the minimum wage change is likely to result in a large increase in company revenue, is through increased taxes and/or an increase in the minimum wage, which is why some people advocate reducing the minimum wage even further to $9 an hour.”
The article concludes, “We do not know how and why minimum wage is increasing. But at minimum, the real issue here may lie in the politics of making it happen and not making it happen and possibly other things like the minimum wage increase, which would impact the future growth growth of the economy.” [Source: Economic Research: Why the Economy Has started Reverse].
However after some initial research and analysis of this article’s authors concluded that the minimum wage has started to go down in the states as there is more and more of a demand for these items, the researchers decided to write the article in order to gain a sense of “where’s the slack in the economy? And where will the slack in the economy be before state spending increases, and the economy recovers after spending? And so, as the article continues, we come to understand more and more that the minimum wage is going to hurt the economy even more. We would rather not look like an economic disaster, but rather as a warning that we are at risk.”
In response to the article, the U.S. Department of Labor (DOL) has responded with an article titled , “On the Rise Of Minimum Wage and Labor Market Crises.” Here is the full text of that response that was published by that journal.
In the long run, there may be some unintended consequences to this article, especially concerning the labor market effect. Although we can argue that the cost of minimum wage rise is going to be minimal to the middle class, it will decrease to much of the high-wage job market that the U.S. is currently hurting. Therefore we are now going to look at the cost and benefits to middle class families.
We are beginning to see a sharp drop in the American minimum wage. In its recent monthly report, the Labor Department stated that the economy did not make progress after 2010, showing that the economy now shrank by 3.8 percent to 4.3 percent. These figures show that, with a wage share of 21.8 percent
It is a proven fact that the primary cause of poverty is low wages. Through the annual study completed by the nonprofit Kaiser Family Foundation and the Health Research Educational trust, it was concluded that this year, the average annual insurance premium to cover a family a four has been raised by about 9.2 percent. As the average minimum wage income