I have many reasons why I do not think minimum wage needs to increase at this time. We need to look at the reasons for minimum wage. We must look at the amount of time the current minimum wage has been in effect. The affect on the economy needs to be well thought-out. The impact on businesses should be analyzed. Additionally, the individuals receiving minimum wage should be considered. At one time in my life, I received minimum wage. I understand the struggles one must make to survive on low income. The purpose of minimum wage needs to be considered.
According to the United States department of Labor, the recently increased minimum wage of $7. 25 went into effect on July 24, 2009. It is extremely too soon to increase minimum wage again. Causing employers to lay off workers in order to adhere to another minimum wage increase is not a good thing. The already high unemployment rate will increase even more. The current minimum wage just went into effect. Researchers and economist need to first determine if this recent minimum wage increase will positively affect our economy. The delay in the minimum wage increase has probably been a pain for minimum wage earners.
Fortunately, these individuals have more spending money. This is definitely what our economy needs, more consumers spending their money. The characteristics of minimum wage employees for 2008 are described by the Bureau of Labor and Statistics. The Bureau of Labor and Statistics provided interesting data pertaining to minimum wage workers. Apparently, the majority of the people earning minimum wages are below the age of 25. I received minimum wage for working at a fast food restaurant in my teenage years. I was always amazed at how well my adult co-worker managed to survive on our hourly pay.
Almost all of the adult workers had a second job. Additionally, these workers had more than one source of income in the household. This was when minimum wage was $5. 15 an hour. Individuals who receive minimum wage might have to budget their money more than everyone else if they want to live within their means. According to the Bureau of Labor and Statistics, the young people who are receiving minimum wage only make up twenty percent of all of the people who are paid by the hour. Additionally, these young individuals make up about fifty percent of all of the minimum wage workers.
This data leads me to believe that people might start the work force in a minimum wage job at a young age, but they do not remain by the time they reach the age of 25. After working in a minimum wage position for years, I finally landed a higher paying position before the age of 25. Many of my colleagues and friends also found higher paying positions. Some made this transition without or before finishing college. Some people make the argument that people who are paid minimum wage live from pay check to pay check. Many other people who are not receiving minimum wage also live from pay check to pay check.
I live from pay check to pay check. Everyone would love to have a higher pay. Unfortunately, employers cannot grant all of its employees pay increases. From my personal experience, minimum wage positions are typically entry level positions, or position for people who have yet to acquire skills and experience. Typically, once the individual has acquired some experience, a little raise will follow. This is how it worked for me and many others. There are many reasons why minimum wage exists. I’m sure one of those reasons is to make sure employers are paying reasonable compensation to their employees.
No, wages are the biggest expenditure of any corporation. Wage increases cuts profits. Corporations are in business to make profit. End result, business will outsource labor to Third World countries were they can pay them a fraction of what US workers are being paid. When looking from being a worker’s point of view, minimum wage should increase. Inflation has been eating away wages and daily living expenses are increasing. For example, food, fuel and rent have been increasing over the years faster than how wages have been rising. So, yes, minimum wages should increase to adjust to these expenses.
When looking at minimum wage from an employer’s perspective, I would not raise the price of minimum wage. If labor costs become high, we would have an abundance of illegal workers. These people will be paid cash and the government will not know about them. In the end, government loses out on taxes as it cannot tax undocumented workers. For example, the California agriculture might hire workers who come illegally from Mexico to pick fruit. It might be possible that the farmers in California cannot afford to employ local workers at minimum wage because it costs too much for them.
The poverty line should increase. It is illogical to place the poverty line as low as it is. Since relatively everything else is increasing, the poverty line should increase substantially as well. Depending on the number of individuals in the household, some minimum wage workers might be disqualified for some governmental assistance programs. This allows the government to save more money on assistance programs. http://www. bls. gov/cps/minwage2008. htm http://www. dol. gov/esa/minwage/america. htm.