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Minimum Wage Research Paper

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Minimum Wage Research Paper
Raymond Navaro
Professor Kasmir
October 9th, 2013
Paper on Contemporary Labor Issue

Minimum Wage Rate and Unemployment Levels - a Direct Relationship

In any labor market, free or regulated, there is friction and rigidity that result in labor issues. With 11 million people unemployed, and millions more discouraged or underemployed, there is justification to believe that these high population levels represent a glitch in the American labor market (1). These basic statistics, coupled with the elementary economic theory of supply and demand, demonstrate that minimum wage regulation has not only proven to be unsuccessful, but should be eliminated immediately. Although compulsory wage levels may be problematic in our contemporary labor …show more content…
Many of these headlines reveal a desire by workers and politicians alike to raise the minimum wage. Organized protests by workers in the fast food industry have assembled in the streets of major cities to bring to attention not only their demand for a much higher minimum wage, but for union representation as well. Additionally politicians like Barack Obama and Seattle Mayor Mike McGinn have spoken publicly about their desire for an increased minimum wage. While the President has put pressure on Congress to legislate a $9/hour minimum wage, Mayor McGinn has expressed his support for a $15/hour minimum wage by his respective legislators (5). Aside from the strong political appeal that may encourage politicians to propose minimum wage increases, on the surface this type of legislation seems like a well-intentioned effort to raise the standard of living of people working for relatively low wages. This is not only because people naturally desire better things for themselves, but it also seems like a productive way to align wages with levels of inflation that the Federal Reserve is primarily responsible for …show more content…
Bureau of Labor Statistics." U.S. Bureau of Labor Statistics. U.S. Bureau of Labor Statistics, 1 Sept. 2013. Web. 21 Oct. 2013.
2) "History of the Minimum Wage." Wikipedia. Wikimedia Foundation, 08 Feb. 2013. Web. 21 Oct. 2013.
3) "Minimum Wage in the United States." Wikipedia. Wikimedia Foundation, 21 Oct. 2013. Web. 21 Oct. 2013.
4) "Lochner Era." LII. Cornell University Law School, n.d. Web. 21 Oct. 2013.
5) Associated Press. "Seattle Mayor Would Support Minimum Wage above $15." USA Today. Gannett, 9 Oct. 2013. Web. 21 Oct. 2013.
6) Casey, Chris. Killing the Currency. Ludwig Von Mises Institute, 27 May 203. Web. 21 Oct. 2013.
7) MacKenzie, D.W. "The Ludwig Von Mises Institute." Minimum Wage Laws: Economics versus Ideology. N.p., 14 June 2007. Web. 21 Oct. 2013.
8) Caldwell, Roger. "Inner City Black Male Unemployment At 50 Percent." West Orlando News Online 2013® Central Florida News, Info, Sports. N.p., 15 Nov. 2009. Web. 21 Oct. 2013.
9) "The Cost Of Unemployment To The Economy." Investopedia. N.p., 9 Aug. 2011. Web. 21 Oct.
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