He holds a Bachelor of Science in mass communications from Middle Tennessee State University. Some consider the minimum wage, established by the Fair Labor Standards Act in 1938, as a necessity, while others think it is a detrimental piece of legislation. Where does this all leave the minimum wage? Only 7% of families in poverty have a member that works full-time. On top of being a major social issue, it is now a main point in many Democratic Presidential candidate platforms. Modern-day advocates of the minimum wage make similar arguments: Employees who receive adequate compensation are better able to clothe, house and feed themselves and their families. Your total wages per hour ignoring peak times, days off, etc.
In Small businesses are negatively affected by the minimum wage because after the increase some may not be able afford to pay the new minimum wage to the workers. Here are the advantages and disadvantages of minimum wage: List of Advantages of Minimum Wage 1. An increase in the minimum wage could cause firms to increase prices and pass the costs onto consumers 4. Increased income has been found to reduce the number of low birthweight babies and neonatal deaths. Therefore, in some circumstances, it is feasible that a minimum wage could actually increase employment — or at least not cause any employment. It can help with setting small business budgets. In addition, consumers who have more income will tend to spend more which can helps drive economic growth.
While all attempts are made to present accurate information, it may not be appropriate for your specific circumstances. Helping Low-Income Workers The minimum wage is a controversial economic and political topic. Conversely, five southeastern states have not set state minimum wages. This could make the unemployment population rise, it will raise prices of other things, and would have little effect on reducing poverty. Aside from this, employers have found other means of adjusting their expenses, like stopping on-the-job training.
That's a city the size of Chicago made up of only men and women living in poverty, right here in our County. Raising the minimum wage can counter the erosion of wages due to inflation. At Wm, quantity demanded of labour is lower than the quantity supplied of labour, and the distance between them is known as unemployment in the labour market. Management and longtime employees of businesses who have worked their way up through pay raises would also likely have their pay increased to match their title and tenure. The free market does it.
The popular opinion wants to raise the minimum wage, but is the popular opinion always right? Even though the federal minimum wage hasn't increased since 2009, the majority of states have a higher minimum wage than required by the federal government. After reading so many reports on the issue, I have come to believe that raising the minimum wage not only fights poverty but also benefits our economy as a whole. I think that most low-wage workers will immediately spend their increased income by buying goods and services to meet their families' basic needs. Ken Jacobs, Ian Perry, and Jenifer MacGillvary, , University of California Berkeley, Labor Center, April 2015. They are concerned they are not going to be able to find that someone, and if they do, that that someone will leave them.
When this happens, they may turn to the black market for help, according to EconomicsHelp. The Resolution Foundation have suggested by 2020 the minimum wage could affect one in nine workers. There are advantages and disadvantages to the minimum wage requirement. So it looks like the minimum wage will probably be staying right where it is for some time to come. This ripple effect goes many different directions.
For those who are worn down from the struggle to survive with little money, the rights to speak out on issues, vote and enjoy life in general become unimportant and do not have meaning. However, they are not looking at the downfalls this will bring to our country. The increased spending and consumer demand from workers whose incomes increase has positive effects on other local workers and businesses. But we also need to make sure that raising the wage won't kill jobs and disproportionately impact small businesses. This is going to be a long term project, but maybe we should give out food stamps for able people only when they pass certain classes. A 7-part mini course to help you spend less and be happy will be sent to you when you subscribe, and you will also get an ever-expanding How to Save Money on Everything ebook.
Department of Labor states that the federal minimum wage is £4. However, it can apply to many white-collar workers. In other words, if the minimum wage doesn't go up over time, people making the minimum wage become poorer and poorer. With that in mind, let's have a closer look at three benefits that could be realized by raising the federal minimum wage, as well as three disadvantages of boosting the minimum wage. This result helps stabilize neighborhoods, benefiting all who live there.
A higher minimum wage, they claim, would be too heavy a burden on employers, especially small business owners. For further validation, always visit the official site for the most up-to-date information. Making sure that people living here are above the poverty line is necessary, but keeping the nation from going bankrupt is also crucial. This could cause companies to face financial distress, or possible face closing down if they find that paying their employees is not going to be financially available anymore. Poverty is a huge problem in America. The positives to raising minimum wage are financial security for families, less worker exploitation and under employment, and it would reduce crime significantly.