Minimum Wage

The effects of Minimum Wage

Abstract:

The United States of America is suffering from a huge crisis that is affecting 15% of all Americans, and affecting 1.6 million workers. This crisis is the Minimum wage and how it is driving many Americans toward the poverty line. This paper explores the talking points about the minimum wage controversy based on studies and polls done by many scholarly organizations. We will see the relationship between raising or keeping the minimum wage at the same rate, which is $7.25 an hour. The sources vary in support of the wage, but both give great points and argue their stand on the subject. This paper examines the effects of raising the minimum wage, and the effects of keeping the wage at the same rate that it has been for the past year.

Introduction:

It shouldn’t be a shock that tens of millions of Americans are living in poverty. The real surprise however, is that many of these Americans in poverty are actually full time minimum wage workers. In order to have a nation with proper living conditions, lower poverty rates, income equality, and a better and more stable economy we must raise the minimum wage. Many argue that increasing the minimum wage would make the economy suffer, and many argue the opposite. Since the establishment of the fair labor standards act in 1938, Congress has raised the federal minimum wage only once from a mere 6.55 to the current wage of 7.25. The last time the federal minimum wage was increased to $7.25 an hour by congress, it was something that hasn’t been done many times since the creation of the wage in the fair labor standards act in 1938 and there is a reason for that. Even with the raise, it still doesn’t provide a proper standard of living, failing to keep up with the average wage growth of an American worker.

According to the nonpartisan Congressional Budget Office report, an attempt to increase minimum wage would prove costly and 500,000 American Workers...