Minimum Wage

Only available on StudyMode
  • Download(s) : 563
  • Published : April 4, 2012
Open Document
Text Preview
State the purpose of this legal price, assess its impact on the market for labor, and evaluate the extent to which it achieves its purpose

The minimum wage is the lowest rate at which a worker can be played. There she minimum wage laws pegged to hourly, daily and even monthly rates, although U.S. law is pegged to an hourly wage. Also, a minimum wage law usually makes it illegal for a person to sell his labor for less than the minimum wage rate

The general purpose of the minimum wage is to guarantee a living wage to all workers who work a standard period of time, whatever that might be. In theory, any labor who works 40 houses a week on minimum wage should be at or above the poverty level line. However, the minimum wage has not kept up pace with the inflation in the United States and the cost of living increases more than the wage increases that are given and that way behind the standards

Minimum wage laws were first started in Australia and New Zealand in the 1890s.The first minimum wage to be law was in Massachusetts in the 1912 but it only applied to children and women. The federal minimum wage was established in 1938 by the Fair Labor Standards Act. Initially set at 25 cents an hour, the wage has been raised periodically to reflect changes in inflation and productivity.

That the mimic wages often involve protracted political battles, Did you know that one in five Americans worked in the poverty levels by the guide lines of the federal government,” Paul Oysterman, an economist at the M.I.T. Sloan School of Management wrote in a recent New York Times editorial. He says the current minimum wage is lower, in inflation-adjusted terms, than it was in 1968. Currently, 6 percent of all hourly workers make no more than the federal minimum wage of $7.25, TIME.com In theory it sounds like a good idea to give everybody a raise, but at what expense? By raising minimum wage it was supposed to make it where people would be able to support themselves and get off of government assistance. Well, they did get a raise and are still on government assist. So my question is: what do you think they should make to be able to totally take care of themselves and their family? Do you think raising minimum wage is the answer? Do you realize that the businesses must be able to meet a payroll? When you raise minimum wage it causes a business to have to raise their prices if all possible which in turns makes their customer base upset, which in turn could cause layoff and less businesses hiring, which in turn means the business will not be properly taken care of because you cannot afford to staff it properly because you cannot afford to pay the higher wages. I own a restaurant which hires people 16 years and older. Now when you hire a person in and they start off earning top wages and there is no bottom, then there is no reason from them to try and do better because you cannot afford to give them raises. I feel like the government is wanting business to be the new welfare system and we cannot afford to be. Please stop this and let the business decide how much an employee is worth. Minimum wage was created to be a starting point in people lives not a living. Our government doesn't want good paying jobs so they are trying to make minimum wage work for the people and it will not! Restaurants and other businesses that pay minimum wage are for a reason. We do not charge a lot for our products, therefore, we cannot afford to pay a lot for our help and you do not need a college education to work at a minimum wage job. Stop this before there are even fewer jobs. Right now I have to raise my prices due to Ohio raising their minimum wage again. Let me decide who gets the raise not the government! Twenty percent of those living on the minimum wage the last time it was raised in 1991 were in poverty, and an additional 13% were near poverty. In 1993, the President expanded the Earned Income Tax Credit (EITC), which raised income for 15 million...
tracking img