Does the Minimum Wage Increase the Standard of Living for...

The United States has maintained a minimum wage which was enacted since 1938. At the present time there is much political debate in regarding to increase the minimum wage to levels at the federal level, state, and local levels of government across this country. There are various theories regarding the minimum wage. Some believe it would circulate money into the economy faster which would negate and negative effects on employment, or even improve unemployment rates. Others point to the economic theory of supply and demand, and claim it will increase the unemployment rate. Both of these are simply theories and must be shown to have real life implications. Are moderate increases in the minimum wage above the equilibrium market rate an†¦show more content†¦It begins with the most basic supply and demand explanation that states that a wage floor will cause more people to go unemployed and the remaining people to earn more, should it be above equilibrium. The exact amount in which it will decrease employment is dependent on the elasticity of labor market. These are the basics of supply and demand. Later it the paper states instead of immediately going to the firing of employees firms may often try to increase efficiencies. According to the work firms may also expect more from their employees. Other solutions may be to decrease the hours of the employees or increase product prices.(Brown, Gilroy Kohen, 1982) I do find these to be compelling arguments. However economic theory must be tested to see if it holds out to be true in the real world. Other papers I have found argue for a different view point. â€Å"Raise the Wage Floor† make various arguments for the raising of the minimum wage. It goes into depth about how various disadvantaged groups, in particular women and single mothers are disproportionately affected. The entire article makes a very compelling argument that there is a need for better living standards for the working poor. Finally it argues that people having a higher wage will circulate more money in the economy. This they argue will negateShow MoreRelated Increasing the Minimum Wage Will Reduce Income Inequality Essay1252 Words   |  6 PagesNo person can maximize the American Dream on the minimum wage. -- Benjamin Todd Jealous No family gets rich from earning the minimum wage. In fact, the current minimum wage does not even lift a family out of poverty. -- Jon Corzine Income inequality has been a major problem facing American society for decades, but has recently become a major concern. I personally believe the major gap between the income of the rich and poor is a not just, but is not a major concern for the governmentRead MoreCongress As Part Of The Fair Labor Standards Act1084 Words   |  5 PagesFair Labor Standards Act (FLSA) instituted minimum wage back in 1938. The first minimum wage was at $0.25 per hour and the last minimum wage increase occurred in 2007. Over the past 65 years the minimum wage has varied considerably in inflation-adjusted buying power. 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. Today’s minimum wage buys somewhat more than the minimum wage has historicallyRead MoreThe Impact Of National Minimum Wage On South Africa s Income Inequality Essay1525 Words   |  7 PagesThe impact national minimum wa ge would have on South Africa’s income inequality should it be implemented. South Africa is still considered one of the countries which still consist of high income inequality. Economists argue that inequality is the most unavoidable part of the economic development and that it continues to increase in developing countries due to economic growth (Keeton, 2014). Inequality is a problem in countries such as South Africa, because it shifts the attention from bigger andRead MoreMinimum Wages During 21st Century America1649 Words   |  7 PagesMinimum Wages in 21st Century America In the United States the time has come for the next president to be elected and the political fervor has come early this year with an unconventional, surprisingly interesting primary race. With the coming of a new commander in chief the incessant grilling of the candidates has begun and issues, such as poverty in the United States, are being given the national spot light during debates. The issue of poverty has recently gained traction among citizens as wellRead MoreMinimum Wage And The Cost Of Living Essay1518 Words   |  7 Pagesand when we can do it, with the complex of living in the United States which is supposed to be the land of the free. The cost of living now these days have put those who only make minimum wage in poverty stricken situations, which now they have no choice but to depend on the government to live. We either have to lower the cost of living so that people can live a somewhat sustainable life, or raise the minimum wage so that we can afford the cost of living that is provided to us. Somethings got toRead MoreThe Economic Impact of Raising the Minimum Wage1474 Words   |  6 Pagesheralded in the Fair Labor Standards Act of 1938 and with it a national minimum wage. Echoes of that speech are still heard today. Senator Edward Kennedy (1989: S14707), in his criticism of the most recent increases in the minimum wage, declared: The minimum wage was, as it should be, a living wage, for working men and women ... who are attempting to provide for their families, feed and clothe their children, heat their homes, [and] pay their mortgages. The cost-of-living inflation adjustment sinceRead MoreThe Issue Of The Minimum Wage1514 Words   |  7 Pages6-8 pages The issue of the minimum wage has recently come to the forefront of the debate on social policy. There is much disagreement over the wisdom of an increase in the minimum wage in the current fragile economic recovery. Some argue that a dramatic increase is what is needed in order to lift the standard of living for those in the bottom of the economic pyramid. Economists reason that the basic principle of supply and demand mandates than an increase in the wage would result in the loss ofRead MoreThe Benefits Of Raising The Minimum Wage1656 Words   |  7 Pagesto be should the minimum wage be raised or should it be lowered or eliminated altogether. From where I stand minimum wage should be raised. Everyone is more successful when people are paid a living wage. Changes to the minimum wage would strengthen the economy and business, Lift Americans out of poverty, and will be unlikely to significantly impact prices. The only way to grow the economy in a way that benefits 90% is to chan ge the structure of the economy. Paying people a fair wage is a sign of respectRead MoreMinimum Wage1471 Words   |  6 PagesThe issue of minimum wage and whether it should increase or not continues to be a hot topic among people. With today’s economy, families struggle to make ends meet due to their low income, while others argue that a minimum wage increase will do more harm than good. Others also argue that the minimum wage should in fact be the living wage (Huffington Post, 2016). As defined by The Balance (2017), a living wage is â€Å"the amount of income needed to provide a decent standard of living.† According toRead MoreEssay about Should the Minimum Wage Be Increased?1585 Words   |  7 PagesIf you have ever worked for minimum wage, I am sure you have felt as if your time was worthless. After taxes you brought home next to nothing, no matter how often you worked. Thats at least how I felt when I worked for minimum wage. In high school I had nothing to pay for but a cell phone. I worked for minimum wage and it seemed like I barely could afford it. I had basically no bills and I worked around twenty hours a week, and it seemed like I couldnt save any money. I always wondered how my coworkers