Congress Should Raise The Federal Minimum Wage - 1042 Words

Many Americans agree that Congress should raise the federal minimum wage, but do individuals truly know the effects of increasing the minimum wage to $15? Some people only look at the comprehensive view of seeking a higher salary, but the increase can cause many negative, as well as positive, effects. Several economists from across the country have done extensive research over the topic of the minimum wage increase, and many differing opinions have formed. The effects can vary from person to person depending on location and implementations that a business takes. Congress last raised the minimum wage to $7.25 in 2009; consequently, a rise to $15 would implement over a 100% increase in the minimum wage. A percentage this high has never†¦show more content†¦These outside factors help business owners find ways to implement the higher labor costs. An increase in minimum wage will have a different outcome for each business. To cover the higher wages and payroll costs, business es must reduce employment or find a way to adjust to the higher costs. History has shown that implementations of new techniques can take effect, such as raising the prices of the distributed products. By raising the prices slightly, a company can take the additional revenue to apply towards the payroll account. Some businesses already have a large profit margin; consequently, they can adjust their budgets to arrange the revenue to cover the increase in the payroll accounts without raising the prices of the products (Wicks- Lim). This adjustment would not affect the workers; however, the employer would take the deficit in the revenue. Unfortunately, some businesses must eliminate jobs and possibly turn to technological advances to avoid the increase in wages (Sherk). The funds saved from the turnover would then pay for the employees left on the payroll. Businesses should never see a drastic decline in revenue from an increase in minimum wage, so overall a business could argue they can still prosper, if the minimum wage rose to $15. The proposal to increase the minimum wage to $15 should directly impact the low-wage workers affected by minimum wage. The envisioned outcome of the proposal is to â€Å"improveShow MoreRelatedFederal Minimum Wage Should Be Increased1180 Words   |  5 Pagesstarted to come to conclusions that the federal minimum wage is excessively low. The government can stand to help people gain more money, resulting in a less poverty-stricken country. The cost of living or gaining has increased significantly over the past twenty years, and the minimum wage, for most isn t enough for them to support themselves. There have been efforts to increase the federal minimum wage, but none has succeeded in getting approved. Minimum wages are too low for a human, to provideRead MoreCongress As Part Of The Fair Labor Standards Act1084 Words   |  5 PagesCongress as part of the Fair Labor Standards Act (FLSA) instituted minimum wage back in 1938. The first minimum wage was at $0.25 per hour and the last minimum wage increase occurred in 2007. Over the past 65 years the minimum wage has varied considerably in inflation-adjusted buying power. It has averaged $6.60 an hour in purchasing power in 2013 dollars, but it has ranged from a low of $3.09 an hour in late 1948 to a high of $8.67 an hour in 1968. Today’s minimum wage buys somewhat more than theRead MoreMinimum Wage Should Be Legal1156 Words   |  5 Pagesbusinesses argued about minimum wage. Whether it should be raised or leave it the way it is. But, what exactly is minimum wages? Minimum wage is the least amount of money per hour that must be paid to a worker after surrounding a service according to the law. Many working class families’ lives depend on this minimum wages. There are few families who make less than $15000 a year who feed their families on this salary and still pay bills from it. Over the past year, the federal government has been wor kingRead MoreMinimum Wage Persuasive Essay1106 Words   |  5 Pagesdeserve more than the federal minimum wage? If you said yes then perhaps you are unaware of the many negative effects surrounding a higher minimum wage and after reading this you will be educated on why the minimum wage should not be raised. In the beginning, the minimum wage was created with good intentions. It was originally established in 1938 and was $.25 an hour (Sessions). It was created to make sure that businesses would not take advantage over workers. While the minimum wage was and still is aRead MoreMinimum Wage and Its Implications763 Words   |  3 PagesMinimum wage affects everyone. The current minimum wage is at $7.25 and President Obama announced that he wished to see a change in the minimum wage, he wants to raise the hourly wage to $10.10. A rise in the income of those who are employed will also raise the cost of hiring unskilled labor and can potentially reduce the number of people hired by busi nesses. Also, if minimum wage is raised then the price of the products that the companies are making might increase which will continue the cycle ofRead MoreEssay on The Minimum Wage Should be Raised1371 Words   |  6 PagesMinimum wages go all the way back to 1938, during the great depression, when the stock market crash and bank loan were failing. Families need income of some type, were they wanted to make it fair were individual could get pay the same without a college degree. I am going to start off with a little about minimum wages history and how this could help our Economic. In 1892 Federal Government adopt an 8 hour workday and other wages standard for employee. In 1903 Congress create the U.S. DepartmentRead MoreWhy we should raise the minimum wage1202 Words   |  5 Pagesworked on minimum wages are struggling to live on a salary that is below the poverty threshold. In 2012, the U.S census posted that in a family of three; their income is 18,552, (U.S Census). In most case, one member of the family is working on a minimum wage salary which is below 18,552, (U.S. Dept. of Labor). It has been almost a five years since congress has raised the minimum wage (Huff Post). Throughout my argument, I will share my thoughts as wells as facts on why congress should agree to raiseRead MoreThe Framers Of The Constitution930 Words   |  4 PagesThe framers of the Constitution predetermined that the Congress to be the foremost branch of the government. But not all the powers are enumerated in the Constitution, leaving some roof to the Supreme Court interpretation. Enumerated Powers, are the powers that are listed in the Constitution, which the Congress can hold to. Implied power is the last clause of the Article I, Section 8, of the Constitution. It states that Congress my p ass any law that is â€Å"necessary and proper† in order to be able toRead MoreThe Effects Of Minimum Wage On The Economy1391 Words   |  6 PagesThe Effects Minimum Wage on the Economy The controversial topic about increasing minimum wage is debated countless times over the years. Minimum wage is the lowest wage an employer can pay an employee permitted by law. The contemporary federal minimum wage is $7.25. Minimum wage applies to all domestic workers but teenagers are the main receivers of minimum wage. Minimum wage has a major effect on the economy. The question is are the effects positive or negative. There are many arguments on whetherRead MoreRaising The Federal Minimum Wage1277 Words   |  6 Pagesraising the federal minimum wage that has developed nation wide attention, including protesting and arguments, has caused many discussions on why it could potentially help the economy grow and how it could result in the crash of the economy. Many people feel like raising the federal minimum wage is a must, while others think it will destroy the economy. There are many benefits that come with raising the federal minimum wage, but those benefits also come with many disadvantages. The first federal minimum