Minimum Wage
Rachael Lawless
Ellingson ENG#101-21202
Rough Draft
22 November 2011
No Title Yet Minimum wage has been a continuing matter since its first establishment, and it is something everyone faces. Though, the recurring problem being brought up again and again is the issue of being underpaid, and is the set minimum wage fair? And will raising minimum wage be more beneficial or harmful in the long run? Through its history can society better understand and find a solution to this problem. Minimum wage was not instituted in the United States until the 1920s, and the idea of wages being determined by the hour was introduced in the 1930s. The Fair Labor Standards Act was born and passed through the Supreme Court in 1938, as well as the Wage and Hour Division. Raising minimum wage has promoted fairness in the work area, and has helped workers earn money for themselves and their families. Through these fairness and equality had been brought about, though its problems have risen throughout after its establishment, questioning its fairness and equality. With the unemployment rate so high, this matter needs to be looked into, as it could potentially save jobs. While many support the idea of raising minimum wage, those opposing the idea claim that raising the minimum is rather detrimental than beneficial to workers and companies, as there is a higher risk of one losing their jobs and items becoming more expensive. It is seen by that raising minimum wage, it costs more to keep an employee, and when a company cannot afford to keep that employee any longer, they lay them off. Director Michael Hicks of Ball State University's Center for Business and Economic Research (CBER), illustrates this by providing a study in which it was found that between the ten year span of 1999 to 2009, the minimum wage increase to $7.25 affected some businesses, whom had to “scale back on filling vacant positions or eliminate jobs altogether” (Hicks). Additionally, The Reason Foundation points out
Ellingson ENG#101-21202
Rough Draft
22 November 2011
No Title Yet Minimum wage has been a continuing matter since its first establishment, and it is something everyone faces. Though, the recurring problem being brought up again and again is the issue of being underpaid, and is the set minimum wage fair? And will raising minimum wage be more beneficial or harmful in the long run? Through its history can society better understand and find a solution to this problem. Minimum wage was not instituted in the United States until the 1920s, and the idea of wages being determined by the hour was introduced in the 1930s. The Fair Labor Standards Act was born and passed through the Supreme Court in 1938, as well as the Wage and Hour Division. Raising minimum wage has promoted fairness in the work area, and has helped workers earn money for themselves and their families. Through these fairness and equality had been brought about, though its problems have risen throughout after its establishment, questioning its fairness and equality. With the unemployment rate so high, this matter needs to be looked into, as it could potentially save jobs. While many support the idea of raising minimum wage, those opposing the idea claim that raising the minimum is rather detrimental than beneficial to workers and companies, as there is a higher risk of one losing their jobs and items becoming more expensive. It is seen by that raising minimum wage, it costs more to keep an employee, and when a company cannot afford to keep that employee any longer, they lay them off. Director Michael Hicks of Ball State University's Center for Business and Economic Research (CBER), illustrates this by providing a study in which it was found that between the ten year span of 1999 to 2009, the minimum wage increase to $7.25 affected some businesses, whom had to “scale back on filling vacant positions or eliminate jobs altogether” (Hicks). Additionally, The Reason Foundation points out