L2P - Minimum Wage
Minimum Wage in America is currently is currently 7.25$, and the never ending want of a higher minimum wage can push it further.
The beginning of minimum wage kicked off in 1983. By law, employers were required to pay their employees at least twenty-five cents per hour. Regardless of the minimum wage being raised, lowered, or being kept constant through the years there is clear positives to it, as well as negatives. The upsides to having a higher minimum wage affects the skill of the workers, and the quality of the goods also rises!
The causes of the seemingly never ending demand of the minimum wage being raised is the obvious: “we need more money for us working.” The less apparent want is for poverty to come to an end in America. Finding the source of the issue is hard due to the sensitive effects that can be triggered by making it harder for the people in poverty to get payed or small business owners getting trampled by the raising of the minimum wage, and not being able to pay his workers.
The most apparent solution to this is to keep the wages stagnant, and unmovable. On the opposite side of this is the CBO (Congressional budget office.) who had the “10.10” option” claimed that it will cause a loss in five hundred thousand workers. They stated “A “$10.10 option” would increase the federal minimum wage from its current rate of $7.25 per hour to $10.10 per hour in three steps—in 2014, 2015, and 2016 “...And that “A “$9.00 option” would raise the federal minimum wage from $7.25 per hour to $9.00 per hour in two steps—in 2015 and 2016…”
Despite the sensitivity of this situation, there is definite positives and dead negatives. Like what I've mentioned previously, “the small business (50-99 Employees) owners can't pay their workers and have to file bankruptcy, they are receiving an average salary of $68,000 annually, down from $72,000 a year ago.” “The category of small businesses with the highest average salary is those companies with 50 to 99 employees, which pay an average annual salary of $41,782.” Thus the owner has less money to use for themselves and simple luxuries, and the supposed end of poverty. These set the very sensitive setting of the presidents and the rest of the government's decisions to prop one side of the economy up or leave one in the dirt.
But this brings me to the uncertainty on how the minimum wage influxes debt and taxes, and whether or not it stays the same or inflates like our currency. We should know the effects of the altering wages and know exactly why and when it would be necessary or not at all to avoid the complaints on raising wages.
Minimum wage should be maintained to not lose jobs for our workers, which would all be due to wage changes, but the bad part in this deal is that it helps one side while hurting the other.
Source Cited :
"Effects of a Minimum Wage." Congressional Budget Office. CBO, 12 Aug. 2015. Web. 03 Nov. 2016. <https://www.cbo.gov/publication/44995>.
Brooks, Buisness News Daily Senior Writer, Chad. "Average Salary For Small Business Owners." Http://www.businessnewsdaily.com/5314-entrepreneur-salaries.html. Chad Brooks, 10 Oct. 2013. Web. 7 Nov. 2016.
Dill, Forbes Staff, Kathryn. "The States Where Small Business Employees Earn The Most." The States Where Small Business Employees Earn The Most. Kathryn Dill, 3 Nov. 2014. Web. 7 Nov. 2016.
"History of Minimum Wage." History of The US Minimum Wage. Bebuisnessed, 18 Sept. 2016. Web. 07 Nov. 2016.