Essay Title: 

Raising the Minimum Wage

April 3, 2016 | Author: | Posted in economics, mathematics and economics

Raising the Minimum Wage

The discusses about the need for increasing minimum wages . The issue of minimum wage has been a significant part of the U .S . economy for over several decades . The inaction by the federal government for various years has created opportunities for increasing inflation to affect the purchasing power with regard to the minimum wage . Further the last few years have witnesses a slack labor market which has brought about stagnant wages as well as incomes . It is hence not a surprise that there are serious efforts being made [banner_entry_middle]

towards the need for increasing minimum wage , an important bulwark for attaining decent wages . Minimum wages is a statement with regard to how a country gives importance to work . It is a tangible method by which Americans tend to view the obligation of the employers towards their employees . And increasing minimum wages is an attempt at bringing about equalizing efforts in a low-wage labor market wherein the employees have very less of the bargaining power , and it is an efficient policy that enables low as well as middle-income families with that of the low-wage employees . These are the important reasons as to why the federal as well as the state level policy makers are being pressurized to act to ensure that the minimum wage tends to become an efficient floor with regard to the wages of the working American population (The Who and Why of the Minimum Wage Raising the wage floor is an essential part of a strategy to support working families

Now if we are to discuss as to who has taken a position on this issue we can understand that the efforts to bring about an increase in the minimum wage are being supported by the unions , human rights activists as well as liberal anti-poverty groups , who are fighting for the poor working class community (Minimum Wage : Almanac of Policy Issues ) In a recent move , with regard to one of its initial acts , the new House of Representatives overwhelmingly voted to bring about an increase in the minimum wages , and such a hike would be the first in almost 10 years This act within the first of the 100 hours of the new Democratic majority at the House of Representatives was indeed a victory for all those activists who had been supporting and working relentlessly for increasing the minimum wages for the poor working community (After victory in House , urge Senate to pass `clean ‘ minimum wage bill

Let us now have a discussion in relation to how the minimum wage affects the different groups of people . The working families who earn low-income would tend to receive significant benefits . By means of increasing the minimum wages , an effort would be made to lift certain working families to rise above the poverty line by enabling to keep their income in tune with the rising inflation as well as the increasing living cost . Along with helping the low-income families , an increase in the minimum wage would also tend to help the women as well as the minorities . An increase in the minimum wage acts as a substitute for the market leverage which the women and minority workers do not have . The minorities like the African Americans as well as the Hispanics would benefit as a result of the increase in minimum wages . The increase in minimum wages would also help the non-unionized workers , such as those employed in the retail trade as well as leisure and the hospitality industries . It will also benefit employees of the service as well as those working in the sales field . Further increasing of the minimum wages would lead to ripple effect wherein there would be wage increase for employees who earn just above the present minimum wage . Proof highlights that when the minimum wage is being increased employers often tend to increase the income levels of those earning above just above the minimum wage . To add to all this , an increase in the minimum wage would tend to stimulate the spending capacity of the people and would put the money back into the local economies and would thus affect all the various groups of people of the U . S society (No Longer Getting By an Increase in the Minimum Wage Is Long Overdue

We shall now look at the history of the minimum wages programs of the U .S . The program evolved in the country since sweating was a situation which prevailed and the plight of the low-income workers , particularly women as well as children , necessitated attention . The emergence of the minimum wage law in the US actually was started with that of the Massachusetts law in 1912 as also that of the increased amount of state laws which were brought out in the following years . In several ways , the initial legislation was varied from one state to another . The initial state laws made their concentration only on women , with limited restrictions on that of the child labor . Adult men actually were not provided with minimum level of wages through means of the law , except for that of Oklahoma , till the passing of the Fair Labor Standards Act — FLSA in the year 1938 (Nordlund , 1

It needs to be brought into discussion as to what makes the issue of increase in minimum wages so much important . Since the time of September 1997 , the present federal minimum wages has not been increased by the Congress . This has brought about a situation wherein the levels of inflation have affected the wages of the low-income employees even further . Presently , the federal minimum wage is that of 5 .15 and it is considered to be at its lowest inflation-adjusted value in over a period of 50 years . And the full time income of a minimum wage worker is only about 10 ,712 annually (The Who and Why of the Minimum Wage : Raising the wage floor is an essential part of a strategy to support working families ) The importance of the increase in minimum wages is associated with the need to meet the basic necessities of life . With regard to the Self-Sufficiency Standard being brought out by Women Employed , Inc , in to meet the minimum level of basic necessities in the City of Chicago , an adult having a preschooler as well as a school-age child must have an income of about 18 .13 per hour and a single adult should have an income of about 8 .57 per hour . Another importance of the increasing minimum wages is for helping families in to access housing . According to the National Low Income Housing Coalition , in Illinois for example , a minimum wage earner need to work for about 120 hours per week or should earn about 301 of the minimum wage in to have two-bedroom housing at Fair Market Rent — FMR . The importance of the issue of increase of minimum wages is also to decrease economic inequality as well as to increase economic growth . As per a 2001 study by the National Bureau of Economic Research , 94 of the increase in top 1 of the taxpayers (Campaign to Reward Work : Raising the Minimum wage and Indexing It to Inflation ) Further if the federal minimum wage is being increased , about 760 ,000 single mothers as well as 1 .8 million parents having children under the age of 18 years will attain a small increase in their income . And about 80 of the minimum wage employees are adults who are above the age of 20 . A decent increase in wages for workers who are earning the minimum amount of wage is considered to be just as well as equitable (The Who and Why of the Minimum Wage : Raising the wage floor is an essential part of a strategy to support working families

Now finally it needs to be noted as to how board is this issue of increase of minimum wages . There is a broad public support in favor of an increase in federal minimum wage . A survey by Peter D . Hart Research Associates in January 2001 viewed that 83 percent of those surveyed was in favor of increasing the minimum wage by about 1 .00 to 6 .15 . A survey by Lake Snell Perry Associates in January 2002 viewed that 77 percent of likely voters was in favor of an increase in the federal minimum wage to about 8 .00 per hour . The Lake Snell Perry Associates survey also witnessed that 79 percent of those surveyed was in favor of steady increases in the minimum wage so as to be in tune with inflation (No Longer Getting By an Increase in the Minimum Wage Is Long Overdue

References

After victory in House , urge Senate to pass `clean ‘ minimum wage bill Unitarian Universalist

Service committee

Campaign to Reward Work : Raising the Minimum wage and Indexing It to Inflation Chapman , Jeff Ettlinger , Michael . The Who and Why of the Minimum Wage Raising the wage

floor is an essential part of a strategy to support working families Economic Policy Institute Briefing . No : 201 . August 6 , 2004 .Chasanov , Amy . No Longer Getting By An Increase in the Minimum Wage Is Long Overdue

Economic Policy Institute Briefing . No : 151 . May 11 , 2004 .Minimum Wage . Almanac of Policy Issues Nordlund , Willis J . The Quest for a Living Wage : The History of the Federal Minimum Wage

Program . Greenwood Press , 1997

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