The Impact Of A Minimum Wage Increase - 1153 Words

The Impact of a Minimum Wage Increase Who gets paid the minimum wage? Well, at some point in our lives we all have been paid the minimum wage. But who are those people earning the minimum wage right at this moment? These are the people who have menial jobs. They work in restaurants, retail stores, bars, and maintenance services (OEA, 9). In 2014, the city of San Francisco proposed an initiative indicating that it would raise the minimum wage to $15 by 2018 (Ballotpedia). So would a typical low-wage worker and low-income family benefit significantly from a minimum wage increase? It would probably help them but not that significantly. In today’s economic standing, people earning the minimum wage are considered below the poverty level if living in San Francisco. In my opinion, the minimum wage increase will give a slight rise to the quality of life for those working on minimum wage as well as their families and could potentially result in narrowing the income inequality gap for workers. Over the years, the cost of living in San Francisco has sky rocketed, so raising a family on a minimum wage has become almost impossible. In fact, the city of San Francisco is ranked the most expensive place in the United States to rent housing (Erin Carlyle of Forbes) Based on my research, the average rent on a two-bedroom apartment in the city of San Francisco is $1,795 per month. While renting a studio is ranging closely from $900-$1,000 (Budget chart). This shows that someone would need toShow MoreRelatedImpacts Of A Minimum Wage Hike900 Words   |  4 PagesImpacts to a Minimum Wage Hike in America There has been much controversy over the years on the impacts resulting from an imposed minimum wage and how it relates to the economy. It wasn’t until President Franklin D. Roosevelt signed a Bill enacting the Fair Labor Standards Act of 1938 that American’s gained the right to a minimum threshold by which their labor could be sold. Against much opposition President Roosevelt was for a law that banned oppressive child labor and set the minimum hourly wageRead MoreThe Economic Impact of Raising the Minimum Wage1474 Words   |  6 Pageswith it a national minimum wage. Echoes of that speech are still heard today. Senator Edward Kennedy (1989: S14707), in his criticism of the most recent increases in the minimum wage, declared: The minimum wage was, as it should be, a living wage, for working men and women ... who are attempting to provide for their families, feed and clothe their children, heat their homes, [and] pay their mortgages. The cost-of-living inflation adjustment since 1981 would put the minimum wage at $4.79 today, insteadRead MoreA Higher Minimum Wage May Help Workers Essay1251 Words   |  6 PagesLabor Standards Act established minimum wage in 1938 (Grossman). Overtime, the minimum wage has been raised in order to account for inflation (BLS 14). However, what the overall economic impact of raising the wage will be is once again a daunting and extensive question. The controversy over raising the minimum wage seems to come from often conflicting economic opinions. While raising the minimum wage is done with good intentions, critics argue that a higher minimum wage will harm those it is actuallyRead MoreThe Minimum Wage Should Be Legal905 Words   |  4 PagesRise in minimum wage has sever al impacts apart from unemployment. The minimum-wage workers would have to pay more taxes and receive fewer benefits if they are subjected to rise of minimum wage. The federal marginal rate for tax is 32 percent on an average for low earning members. This would amount to almost one third of the income of a worker. The tax rate is quite high for low paid workers. The rise of minimum wage would also reduce some of the advantages and leverages that the low-wage workersRead MoreImpact Of Minimum Wage On Unemployment1305 Words   |  6 PagesImpact of minimum wage on unemployment The supply and demand factors show significance towards growth of unemployment. It has been observed that the price floor above equilibrium wage should cause unemployment. There are many people who have provided their arguments against the fact. However, it has been observed that whenever there has been a rise in the minimum wage of workers, unemployment rate goes very high. For example, an organization has to maintain its expenses as well as its incomes.Read MoreThe Effects Of Raising The Minimum Wage1311 Words   |  6 PagesThe Negative Impacts of Raising the Minimum Wage While the debate over the effects of raising the minimum wage continues, there are countless studies and statistical data to support both sides of this controversy. Often the negative impacts of these wage increases are overshadowed by those who want to help the working class who live at or below the poverty level. Do these increases actually help the ones that they were intended to help? What are the negative impacts on the rest of the working classRead MoreEconomic Outcomes Of Raising The Federal Minimum Wage1489 Words   |  6 Pagespercent of all wage and salary workers. Among those paid by the hour, 1.3 million earned exactly the prevailing federal minimum wage of $7.25 per hour. About 1.7 million had wages below the federal minimum. Together, these 3.0 million workers with wages at or below the federal minimum made up 3.9 percent of all hourly paid workers†(Ratio of Minimum Wage). The Federal minimum wage drives debate among people today, and with many wanting the federa l government to raise the minimum wage to fifteen dollarsRead MoreThe Benefits Of Raising The Minimum Wage1656 Words   |  7 Pagesto be should the minimum wage be raised or should it be lowered or eliminated altogether. From where I stand minimum wage should be raised. Everyone is more successful when people are paid a living wage. Changes to the minimum wage would strengthen the economy and business, Lift Americans out of poverty, and will be unlikely to significantly impact prices. The only way to grow the economy in a way that benefits 90% is to change the structure of the economy. Paying people a fair wage is a sign of respectRead MoreShould Minimum Wage Be Increased?1691 Words   |  7 PagesShould Minimum Wage be Increased? Introduction The term, â€Å"minimum wage† refers to a lowest payment that an employer is bound to pay to its workers. Today minimum wage is made compulsory in more than ninety percent of nations including Canada where workers are demanding to increase minimum wages for a long time. Minimum wages are revised by governments in order to met growing needs of workers. There is a difference of opinion on the issue of increasing minimum wages among people of Canada. EmployersRead MoreShould Minimum Wage Be Increase?996 Words   |  4 PagesIntroduction Should minimum wage be increase to $15 an hour? That seems to be the million dollar question. Minimum wage is the lowest wage an employee can receive for working. Minimum wage is a contract or legislation by the government or legal authority. How would the increase in minimum wage impact the economy? Summary According to, a news article in the Star Phoenix called â€Å"Pros and cons of a minimum wage increase hourly† (Tyndall, 2015). Tyndall states that, minimum wage is basically the lowest