Do minimum wage workers deserve a better paying wage? Perhaps a wage that they are believed to be able to live off of? Will raising the minimum wage help those it really intends to? With unemployment pushing 8% nationwide and costs rising, nationwide people are pushing for minimum wage to be increased. The minimum wage was established by Franklin Roosevelt as part of the New Deal in the 1930’s. The Fair Labor Standards Act of 1938, as stated by Jonathan Grossman on www. dol. gov, is what ultimately established the minimum wage nationwide for all workers.
The minimum wage guarantees workers a wage that is fair for all workers. It is the lowest possible amount that an employer can pay their workers. Though it is believed that the minimum wage will help the lower class, raising it will not actually help those it intends to, but in fact raise living costs and many other expenses when the minimum wage is raised. The problem with minimum wage is that it is not kept up with yearly. As inflation across our country increases yearly, minimum wage stays the same. With unemployment at about 8%, many people are pushing for a higher minimum wage.
In “How raising the federal minimum wage would help working families and give the economy a boost” by Doug Hall and David Cooper, they believe that an increase of minimum wage will boost the economy. “Throughout the nation, minimum-wage increases would create jobs. ” (Hall & Cooper) Creating jobs would help the economy by helping the unemployed get off of government assistance, but raising the minimum wage will not help create those jobs.
The underlying problem with increasing minimum wage is that when the minimum wage is increased, jobs will not be created but will in fact job loss will increase. Employers will be forced to pay their employees more than they can afford, thus causing the employers to cut hours and even jobs to keep their business successful. Increasing the minimum wage can also price many out of the job market, as stated by James Dorn in “The Minimum Wage Is Cruelest to Those Who Can’t Find a Job. ” If employees cannot produce the amount of work for which they are getting paid, then they may be laid off. (Dorn).