The Minimum Wage Should Be Eliminated Essay - 700 Words

The minimum wage is something that F.D.R. put in place a long time ago during the Great Depression. I dont think it worked then. It didnt solve any problems then and it hasnt solved any problems in 50 years. -- John Raese In the United States, the federal government maintains a national minimum wage to protect the purchasing power of ordinary workers. It seems good that the government protects your purchasing power by adjusting the minimum wage with respect to the inflation rate. Its economic side effects are so obvious that make this policy a bad one because it creates more unemployment, makes employers cut fringe benefits and is inefficient. The first argument is that minimum wage creates more unemployment. From the point†¦show more content†¦If there is a surplus of corn, the government will buy it. However, not like corn, the government does not hire surplus labor. The labor surplus will take the form of unemployment, which will be lower if the minimum wage does not exist. The second argument is that minimum wage makes employers cut fringe benefits. As a way to offset the increasing wage costs, many employers find ways to cut other expenses. One way is to cut expenses on medical insurance because medical insurance premiums usually constitute the largest portion of employees’ benefits other than their wages. More importantly, it is lawful to do away with health insurance benefits. â€Å"A recent study analyzing the impact of various federal minimum wage increases over a decade found that a 20 percent increase in the minimum wage reduces employer-sponsored health insurance coverage by 4 percent† (Sasser). The most typical example is Wal-Mart’s decision to shift the cost onto its employees. â€Å"In New Jersey, Wal-Mart tops the list of employers pushing workers into state-provided health care programs although the retailer is only the state’s eighth largest employer† (The Wal-Mart) . Employees may get more money in thei r pockets. However, the trade-off for higher wages is losing their valuable, important health insurance plans. The third argument is that minimum wage is inefficient. Due to complicated procedures in ourShow MoreRelatedMinimum Wage And Its Effect On The Workplace886 Words   |  4 PagesPrice floor is most commonly defined as a government price control that establishes the minimum allowable price that can be charged for a particular good or service (Ragan, 2013). The most popular and recognisable examples of a price floor is minimum wage. Fundamentally, a minimum wage is the lowest hourly wage that employers can legally pay their employees (MCEE, 2008). For much of the past century, the minimum wage has been a controversial subject among policymakers and economists around the worldRead MoreArticle Rebuttal: Minimum Wage Essay1192 Words   |  5 PagesArticle Rebuttal: Minimum Wage Over the years there has been much debate about raising the federal minimum wage. Some states have taken it upon themselves to set higher minimum wages than the federal minimum wage, because of the lack of action by congress. The supporters of the raising of the federal minimum wage have been more vocal lately. This is especially true since studies have shown, that the gap has grown between the wealthier population, and the middle class. Recently President Obama, becauseRead MoreMinimum Wage Is A Touchy Subject1454 Words   |  6 PagesMinimum wage is a touchy subject for most in this state of Michigan and in the nation as well. The fact that people who work jobs for menial pay, and are expected to survive on this limited budget is absurd. The prices for basic necessities have skyrocketed and has never ceased from creeping upward, and the largest expense for families is child care. Paying a living wage cuts down on absenteeism, decreases employee turnover, and saves on retraining costs. In a recent study of calculating expensesRead MoreThe Minimum Wage Law Should Not Exist1684 Words   |  7 PagesThe minimum wage law was first enacted in January 1938 (Mutari, Ellen), and since then, people have falsely been led to believe that it is beneficial to the economy as well as the general population. It has commonly been seen as a method to reduce poverty by redistributing income in order to make sure that people earn a healthy, living wage; however, evidence has shown that it in fact does just the opposite. Forcing a minimum wage goes against the free market, and severely disrupts the natural processRead MoreEssay on We Must Raise the Minimum Wage1615 Words   |  7 Pages Minimum wage is the lowest wage an employer can pay their employees. There is a Federal minimum wage and in some cases a State Minimum wage. The current Federal minimum wage is $7.25. An employee who makes $7.25 an hour and works 40 hours a week, will earn about $14,000 per year. The Federa l government deemed that the poverty line is anyone who makes less than $17,000 a year (â€Å"Federal Minimum†). Therefore anyone that makes minimum wage lives below the poverty line. As president ObamaRead MoreIncome Inequality : Not All Live Equal Lives1198 Words   |  5 Pagesthe United States of America should not all live equal lives. Yes, rich people benefit the most from income inequality, however they do not participate towards a fair level of taxpaying commitment, in comparison to those individuals who live low or middle class lifestyles. Anger occurs frequently from high-class individuals when the conversation of equal tax paying money becomes issued as a relevant topic and issue. The answer towards fixing income inequality should not make every high, middle orRead MoreShould Minimum Wage Be Raised? Essay1596 Words   |  7 Pagesgovernment has so generously termed the â€Å"minimum wage†. In Missouri, the minimum wage has been set at a rather appalling $7 .65 per hour while in other states there are wages starting as high as $10. Though arguably the economy is not as sluggish and terrible as it once was, $7.65 per hour will not help those who have children, no college degree and debts to pay. It is not only Missouri that has minimum wage laws, but every other state in America has minimum wage laws in place. Both California and SeattleRead MoreThe Employment Standards Act1041 Words   |  5 Pagesthroughout our province, as well as allowing both employees and employers to be protected by these standards in the case of a dispute (bclaws.ca, 1980). The act includes regulations which outline employee’s rights with regards to such things as minimum wage; overtime and vacation pay. It is imperative for human resources professionals to understand this Act - as it not only protects organizations legally, but it helps to â€Å"attract, retain and engage diverse talent required to meet operational performanceRead MoreProcedural Fairne ss : The Case Concerning Dalton Mcguinty And The 2010 Minimum Wage Increase1336 Words   |  6 Pagesrespect to the case concerning Dalton McGuinty and the 2010 minimum wage increase. Procedural fairness is to, â€Å"ensure that administrative decisions are made using a fair and open procedure . . . with an opportunity for those affected to put forward their views and evidence fully and have them considered by the decision-maker† (Baker v. Canada). The closed door meeting between McGuinty and business leaders, in regards to the minimum wage increase, was anything but fair and open. It not only deviatedRead MoreIssue of Raising the Minimum Wage1527 Words   |  7 Pages A major debate that has been an issue is whether there should be a law to raise the minimum wage. The minimum wage is the lowest hourly salary an employer can pay an employee for their work. According to Williams (2013), â€Å"The minimum wage was signed into law by President Franklin Roosevelt in 1938†. The first minimum wage was 25 cents per hour. Since then, the minimum wage has been increasing as the last increase of Floridas minimum wage was an increase of 14 cents on Jan. 1, 2014. This federal