The Minimum Wage Should Be Increased Essay -- Minimum Wage Essays

Congress enacted the federal tokenish lucre in 1938, during the Great Depression. Congress had two goals guardianship workers away from poverty and boosting consumer spending for economic recovery. immediately, there is a debate, whether we should affix the minimum wage again. Increasing the minimum wage is useful for some(prenominal) reasons. First, the current minimum wage has failed to keep up with inflation. Second, a high income level reduces employee turnover and increases efficiency and ultimately, raising the minimum wage does non reduce employment. Even with high unemployment rates, the minimum wage is useful for the economy.Today the federal minimum wage is $7.25 per hour since July 24, 2009. It has failed to keep up with inflation. The trustworthy value of the minimum wage rose steadily from 1938 until its value reached a peak in 1968. Thereafter, it suffered severe erosion as Congress failed to rectify for the inflation over time. The minimum wage of $1.60 an hour in 1968 would be $10.47 today when adjusted for inflation. This means that the purchasing power of the minimum wage has decreased signifi tushtly over time. The current minimum wage is no longer enough to protect workers out of poverty. A person who earns the minimum wage and works full-time (40 hours/week, 52 weeks/year) only earns about $12,000 in a year. This is almost $7,000 below the poverty line for a family of cardinal ($19,090) according to the federal poverty guidelines. As a result, the gap mingled with poor and high-income families is continuously increasing, and taxpayers have to pay more for public aid such as food stamps and Medicaid. Increasing the minimum wage can increase the annual income of low-income families and reduce the public assistance expenditures by g... ...litical Science, London, UK. stripped-down Wages and date A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania David Card and Alan B. Krueger, The American Economic Review, V ol. 84, no. 4 (Sep., 1994), pp. 772-793The Effect of the Minimum Wage on the Fast-Food Industry Lawrence F. Katz and Alan B. Krueger, industrial and Labor traffic Review, Vol. 46, No. 1 (Oct., 1992), pp. 6-21Minimum Wage effectuate Across State Borders Estimates Using Contiguous Counties Arindrajit Dube, T. William Lester, and Michael Reich, Review of Economics and Statistics (2010) 924, 945-964Do Minimum Wages Really Reduce Teen Employment? ALLEGRETTO, S. A., DUBE, A. And REICH, M. (2011), Accounting for Heterogeneity and Selectivity in State Panel Data. Industrial Relations A Journal of Economy and Society, 50 205240. doi 10.1111/j.1468-232X.2011.00634.x