The federal minimum wage law was introduced in 1938. It stated that the wages were to be adequate to ensure a standard of living that was essential for general well – being, efficiency, and health. The paper "The Minimum Wage Law" discusses the pros and cons of the enactment of this law…
Download file to see previous pages...
This underwent a gradual but consistent decline, and by the year 2006, the minimum hourly wage could barely procure 2 gallons of gasoline. The minimum wage is not uniform across the states, and some of the states have mandated much higher minimum wages. For example, Washington obliges employers to pay $8.55 per hour. A major issue relates to the fact the minimum wage, in real dollar terms; fell by 22%, in the period 1973 to 2007. During this time the profits of the corporate sector increased by more than 50%, which significantly increased the gap between the rich and poor. In the year 2007, it was envisaged that the proposed federal minimum wage increase would prove beneficial to a large number of American workers. Approximately, 5.6 million workers are likely to be direct beneficiaries, with a 41% enhancement in pay. In addition, around 7.4 million workers are expected to derive an indirect benefit. All said and done, such benefit will be provided to some 13 million workers. The chief beneficiaries of this increase in minimum wages will be adults, who constitute 79% of this group. Of these beneficiaries, women constitute 59%. This increase in minimum wage serves to benefit individuals as well as families. It is important to note that women constitute half of the minimum wage earners. Consequently, the economic gender gap is reduced substantially, due to increase in the minimum wage. Moreover, 1.2 million of these workers are single parents and most of these people are women....
Of these beneficiaries, women constitute 59%. This increase in minimum wage serves to benefit individuals as well as families. It is important to note that women constitute half of the minimum wage earners. Consequently, the economic gender gap is reduced substantially, due to increase in the minimum wage. Moreover, 1.2 million of these workers are single parents and most of these people are women.5 It is indispensable to increase the minimum wage, in order to restore its value. However, the federal minimum wage does not take inflation into account. As a result, the value of the minimum wage decreases with increasing inflation. In this situation, it is necessary for Congress to enhance the minimum wage suitably. Thus, we find that the federal minimum wage is a mere 31% of the average hourly wage. 6 The burgeoning US economy makes it very difficult for the minimum wage earners to survive. This can be attributed to the continuous increase in goods and services. Unlike other workers, who are provided compensation for inflation, the minimum wage earners do not experience any increase in their wages. This inequitable situation has persisted for a decade. Another issue that cripples the minimum wage earner is the increase in wage inequality, due to the decrease in the real value of minimum wages, consequent to an increase in inflation. 7 An increase in the federal minimum wage does not result in an increase in unemployment. This had been conclusively established in a study conducted by the Economic Policy Institute, for the period 1996 to 1997. Furthermore, several contemporary studies have clearly shown that the market had
...Download file to see next pagesRead More
Cite this document
(“The Minimum Wage Law Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved de https://studentshare.org/macro-microeconomics/1391613-pros-and-cons-of-the-minimum-wage-law
(The Minimum Wage Law Essay Example | Topics and Well Written Essays - 2500 Words)
“The Minimum Wage Law Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/macro-microeconomics/1391613-pros-and-cons-of-the-minimum-wage-law.
In this respect, there are two types of employers, including private employers and the government. In their mutual agreement, they have to ensure the plight of workers in regard to their pay is given solid attention. This shows the reason why the New Zealand government has initiated the minimum wage law.
Opponents to the idea of elevating the minimum wage charge that employers could not afford these federally mandated pay raises and would be forced to lay-off workers and that most persons who make the minimum wage are teenagers or temporary workers, not heads of households with a dependent family to support.
At first sight minimum wage seems to be helping the employees; however there are many controversies associated with minimum wage. Proponents argue that minimum wage would prevent employers from exploiting the employees and it will help the employees to reduce their poverty level and increase their living standards.
Although minimum wage laws have affected different jurisdictions, there have been different opinions concerning the benefits and disadvantages of minimum wage. Those that support the idea of minimum wage claims that it increases the standard of living of employees, reduces inequality, reduces poverty, makes businesses to be more efficient and increases the morale of the workers (E, Michael, Canada, & Policy, 2008).
The New Deal legislation that had the ideal of providing a living wage for all workers has gone unfulfilled, as the wage is still far below the federal standard for poverty. However, advocates of the law argue that it does give the worker some level of protection against the exploitation of greedy businesses.
minimum wage, intended for the least skilled and educated persons in the workforce, is to raise their earnings in order to offset the forces that drive the market down which would otherwise reduce their buying power. Opponents to the idea of elevating the minimum wage charge
There has also been several problems encountered in addition to the problems that have been stated by minimum wage laws, one of them that is currently being debated about is the quality of life of those who are just a little bit above the minimum wage and the problems they face when it comes to literally be living paycheck to paycheck.
on the socio-political front, the civil rights of the black people got established yet excluding many political and social rights (Henretta and Brody, 440-453). The thirteenth amendment of 1865 to the Constitution abolished slavery which was tried to be circumvented by many
The minimum wage has been at a constant level of $7.25 an hour for a long time, which necessitates a need for review. It is noteworthy that employees who earn the minimum wage are usually teenagers and young adults trying to kick-start their
5 Pages(1250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic The Minimum Wage Law for FREE!