A high school student that has a job or is thinking about getting a job knows what minimum wage is because they know how little it is. Minimum wage is a set p/hr earnings an employer must pay his or her employees. Oregon is one of eighteen states in the U.S. that has set a higher minimum wage then the federal law of only $5.15 per/hr. For many years there has been a debate on weather or not highirng the minimum wage helps or hurts the economy, in most states with a higher minimum wage it has shown an increase in that states economy.
When Bill Clinton was in office he gave the states the power to set their own minimum wages above the federal level. One reason why he chose to do this is because it would allow states to change according to what fit their needs the best. A living wage is how well a person can perform a standard of living. That of course depends on where you live and the different types you fall under.
You may think how does the minimum wage affect our economy. Dose it help or not. Economists recently signed a statement stating that federal and state minimum wage increases “can significantly improve the lives of low-income workers and their families, without the adverse effects that critics have claimed” (LEG 2005). Even the research that suggests a negative labor market effect shows only a minimal impact that is more than offset by the higher wage levels. The states that have adopted higher-than-federal minimum wages have seen low-wage workers’ incomes rise with no negative side-effects. If the minimum wage were increased nationally to $7.25 13.6 million workers Would receive a raise, 80% of those affected are adults age 20 or over, and 7.3 million children would see their parent’s income rise.
The first attempt at establishing a minimum wage in the United States came in 1933, when a $.25-per-hour standard was set into the NIR. However, in 1935 Schechter Poultry Corp. v. United States ruled that the minimum wage was unconstitutional, and the minimum wage was abolished. The minimum wage was set back into place into in 1938 during the Fair Labor Standards Act. From then to now the minimum wage had its highest purchasing value ever in1968, when it was $1.60 per hour or $9.12 in 2005 dollars ( ORG 2005). When I say purchasing power you might think what is that, or how does it work. Well purchasing power is amount of something you can buy with the same amount of money. If money income stays the same, but the price of the good or goods go up, the effective purchasing power of that income falls. Falling purchasing power can also be called inflation.
When you think of minimum wage you think of only high school students and fast food. In new research, results show 60% of people who earn a minimum wage are female and 40% male. Also they found 83% are single persons 25 or younger. Over half of minimum wage workers 53% are full or part time students. These statistics show you that it’s not only high school students that are making these wages. A little over 20% of American family’s the head of the house depends on a minimum wage job for their many source of income. That might seem alarming knowing that many families must live off the same amount I make and our forced to support a family.
With the national minimum wage set at $5.15 per/hr many states have chose to raise there minimum wages for a few different reasons. Supporters of minimum wage increases claim they are needed to help lift people out of poverty and to strengthen workers’ bargaining clout, while opponents argue that the minimum wage is too blunt an instrument to effectively combat poverty. Because a large portion of minimum-wage earners are actually middle-to-upper-class teenagers, tools such as the earned-income tax credit are better at targeting the working poor. States such as Minnesota and New York have added supplements to the federal earned-income tax credit, which since the late 1990s has provided refunds to low-income wage earners, particularly single mothers.
The federal poverty level was created by Mollie Orshansky of Social Security Administration (FPL SAS 2001). The Census Bureau updates the thresholds of the federal poverty level. One way to determine of he or she falls under the federal poverty level is money income. This includes earnings, unemployment compensation, workers compensation, social security, supplemental security income, public assistance, veteran’s payments, interest, rents, and child support. Noncash benefits such as food stamps and housing subsidies do not count. Also if he or she lives with family members you have added that income in to.
The next step is to determine your poverty thresholds. These include 48 different thresholds, just to name a few: size of family, age of family members, and size of house, food budget, and ext. You take these to numbers and divide them and depending on what you get you are considered in poverty or not.
Among hourly-paid workers age 16 and over, about 2 percent of those who had a high school diploma but had not gone on to college earned the minimum or less, compared with about 1 percent for those who had obtained a college degree.
While the findings of economists on the minimum wage are new data, the weight of opinion has clearly been moving toward a belief that the minimum wage improves the lives of low-wage workers without poor consequences. Even, however, if the negative findings of some researchers were to be accurate, minimum wage workers as a whole would be better off, as the temporary losses of the few would be far more than offset by the wage gains of the many. The positive effects of the minimum wage are difficult to dispute. The minimum wage sets a floor for the value of work and lifts the living standards of low-wage workers.