The Economics of Minimum Wage

One might ask, what is minimum wage? Minimum wage is the lowest hourly amount an employer can pay an employee. There may be some exceptions based on the type of worker. There are two kinds of minimum wage rates, state and federal. Right now, the current minimum wage is $7. 25 per hour. In some states, minimum wages are higher than the federal rate. Workers are paid the higher amount in those locations. Minimum wage has been a hot subject among the policy makers and economists. It has also been a hard and tight issue for the economists. This goes back as far as the 1938 Fair Labor Standards Act.

Minimum wage was a politically debatable issue. In 1933, President Franklin Roosevelt attempted to legislate a federal minimum wage, but it was taken down. Eventually, President Roosevelt won and Congress passed the FLSA. At that time minimum wage was set at 25 cents per hour. Since the passing of the Fair Labor Standards Act, the United States has required that all firms that do at least $500,000 worth of business per year pay their co-workers a minimum wage. Minimum wage plays a big part in the cost of labor and hGet Access to AntiEssays. com - Complete Your Registration Now.

Top of Form Search Bottom of Form GET FULL ACCESS! LOGOUT HELP CONTACT The Economics of Minimum Wage Essay Below is a free essay on "The Economics of Minimum Wage" from Anti Essays, your source for free research papers, essays, and term paper examples. The Economics of Minimum Wage ? One might ask, what is minimum wage? Minimum wage is the lowest hourly amount an employer can pay an employee. There may be some exceptions based on the type of worker. There are two kinds of minimum wage rates, state and federal. Right now, the current minimum wage is $7.

25 per hour. In some states, minimum wages are higher than the federal rate. Workers are paid the higher amount in those locations. Minimum wage has been a hot subject among the policy makers and economists. It has also been a hard and tight issue for the economists. This goes back as far as the 1938 Fair Labor Standards Act. Minimum wage was a politically debatable issue. In 1933, President Franklin Roosevelt attempted to legislate a federal minimum wage, but it was taken down. Eventually, President Roosevelt won and Congress passed the FLSA.

At that time minimum wage was set at 25 cents per hour. Since the passing of the Fair Labor Standards Act, the United States has required that all firms that do at least $500,000 worth of business per year pay their co-workers a minimum wage. Minimum wage plays a big part in the cost of labor and how firms deal with these costs. A change in the minimum wage that would affect only workers it seems can be felt all the way down to the consumer, who might end up paying for it in the end, unless the firm finds another way to pay for the mandatory raise for all its workers.

This means, a decrease in the workforce or a change in the production process. Without really noticing or paying attention to it, the consumer might not feel it. A change in the minimum wage has short term and long-term effects on the economy. Either it can be beneficial or it can be devastating to society. When minimum wage is increased, it puts money in the pockets of low wageworkers that have no other choice but to spend that money in their local communities. The more money the workers can make due to increase of minimum wage, it will boost consumer’s spending...

Read Full Essay Welcome Anti Essays offers free essay examples to help students with their essay writing. Sign Up for free to view this essay about The Economics of Minimum Wage. Submitted by: duck1002 on March 25, 2013 Category: Business and Economics Length: 1,372 words Views: 102 Popularity Rank: 303095 1 2 3 4 5 1 rating(s) Report this Essay Save Paper Related Essays The Economics Of Minimum Wage The Contribution Of The Minimum Wage To u... Minimum Wage. The Answer? Or The Problem? The Unforeseen Effects Of Minimum Wage.

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Hat Would Be The Impact Of Raising The... Minimum Wage The Minimum Wage Dilemma Raising Minimum Wage Minimum Wage Minimum Wage a Paper: Minimum Wage And Human Rights Citations MLA Citation "The Economics of Minimum Wage". Anti Essays. 20 Mar. 2014 APA Citation The Economics of Minimum Wage. Anti Essays. Retrieved March 20, 2014, from the World Wide Web: http://www. antiessays. com/free-essays/435955. html ©2014 AntiEssays. com Use our free essays properly by reading our disclaimer and learning how to cite. Privacy Policy Contact Advertising Copyright Sitemap.