Narrative essay
Ever since the Fair Minimum Wage Act of 2007 raised the federal minimum wage of hourly pay to $ 7.25, beginning in 2009, there have been numerous abortive endeavors by the US Congress to increase salaries further. The major dual exertions are the Living Wage Movement to increase the payment by 100% and the Harkin-Miller proposal to increase the compensation up to $ 10.10. (Sabia & Burkhauser, 2020).
For three consecutive years, 2012 to 2013, United States Senator Tom Harkin and Representative George Miller initiated the bill to elevate the minimum wage. Nonetheless, none of these efforts bore fruits. While their suggestion to advance the minimum wage by $2.6 was re-presented for the third time in 2014 under the Minimum Wage Fitness Act, which was supported by the US President Barack Obama. Unfortunately, the bill successfully failed by only four votes to flabbergast a Republican-led filibuster in the Senate on Apr. 29, 2014. (Sabia & Burkhauser,2020).
The federal least possible remuneration was hosted in 1938 in the Great Depression under President Franklin Delano Roosevelt. It was initially set at $ o.25 per hour and has been augmented by Congress twenty-two times, most lately in 2009. It was established from $ 6.55 up to $ 7.25 per hour. Twenty-nine states, including the District of Columbia, have the least wage the federal minimum income. (Sabia & Burkhauser,2020). Approximately one million and eight million employees, which is 2.3% of the hourly waged working populace, get the federal minimum wage or below.
Protagonists of the higher minimum wage argue that the current hourly minimum wage of $ 7.25 is too low for the workers to depend on. An increase of minimum wage will help establish jobs and propagate the economy that the declined value of minimum wage is one of the primary attributes of wage inequality witnessed between lower and middle-income employees. Many Americans, counting a slim mainstream of self-described fundamentalists, support the aggregation of the least wage.
On the other hand, opponents of the idea claim that many premises can’t afford to wage their employees more and will be forced to shut down, Let go of the employees, or relatively moderate hiring. Such rises have been observed to make it more complicated for unskilled employees. Those trained but without experience would face a challenge in getting opportunities or become upwardly peripatetic; increasing the minimum payment at the state level won’t consider local cost-of-living disparities. Raising the minimum wage may hurt low-income societies in particular. (Wessels, 2019).
A 2007 opinion poll by the University of Maryland and Voice of people found that almost 74.2 of the overall Americans back up the minimum wage increment to $ 9.00 per hour. 56.7% supported the raising of minimum hourly pay up to 10.10. A 2017 Quinnipiac University market research found that almost 55% of Americans proposed increasing the federal minimum hourly wage to abruptly $15.00, while 45% of the population would suggest the idea. (Wessels, 2019).
A May 2015 research piloted by CBS and the New York Times showed indicated that almost 87% of the Constitutionalists, 51% of the Antimonarchists, and 74% of the independents were favored by wage increment to $10.10 per hour, and 67% of males and 75% of ladies. As far back as 2009, the general proposition for a rise in the minimum wage has been above 75%. (Wessels, 2019).
Another 2015 Gallup poll revealed that 50% of small business owners were conflicting with the minimum wage levitation to $9.55 an hour. 61% supposed such intensification would offend most small-scale commercial proprietors. A 2015 survey by the Wall Street Journal and Vestige Intercontinental found that 49% of small business owners preferred raising the minimum wage despite 49% being divergent. (Wessels, 2019).
Advocates of the living wage consist of Governors Andrew Cuomo of New York and Jerry Brown of California, former US Secretary of Labour Robert Reich, and the New York Times Editorial Board. Antagonists of the living wage comprise President Donald Trump, the US Chamber of Commerce, and Senator Marco Rubio (R-FL). .(Furman, & Parrott, 2017).
Based on the opposing view of the argument, increasing the minimum wage has more and intensified cons than its benefits. First, an increment of the minimum wage would force businesses to discharge the workers and raise the unemployment levels. According to the congressional budget office, a minimum wage increase would lose half a million jobs. .(Furman, & Parrott, 2017). The research shows that 1324 businesses and human resources specialists, 39% of workers would be laid off.
Rising of the minimum wage would upsurge the poverty level. Research by the Federal Bank of Cleveland has found that despite the low-income earners seeing the wage increment upon raising the minimum wage, their operational workers and employment would deteriorate, thus increasing the households’ proportion under low standards of living. .(Furman, & Parrott, 2017).
An increment of the hourly minimum wage would hurt the premises and make companies shut down. According to the 2003 study by Gallup, Jamie Richardson, MBA, Vice President of fast-food chain White Castle, over 60% of the small-scale premises and companies would close 50% of their stores and discharge thousands of employees. Forbes testified that an increase in the minimum wage has already led to the ending of several Wal-Mart stocks and the withdrawals of guaranteed stores hitherto operate. .(Furman, & Parrott, 2017).
With the increment of the minimum hourly wage, there would be an increase in consumer goods’ costs. A 2013 article by the Federal Reserve Bank of Chicago, if the minimum wage is interfered with, there would be increased prices for foods, beverages, meeting facilities, guest rooms, and other related services to compensate for workers’ wages. .(Furman, & Parrott, 2017).
According to the Pew Research Centre, Youngsters and young grown-ups would keep off the labor force if the minimum wage is upraised.(Furman, & Parrott, 2017). This is because the majority of firms won’t manage to wage young employees without skills or experiences. Casey B. Mulligan, Ph.D., finances professor at the University of Chicago, specified that the teenaged occupation directory fell abruptly after the minimum remuneration upturn of July 2009 (a reduction of around 8% in the quarter year, while the preceding fall of 8% took over a year).
REFERENCES
Sabia, J. J., & Burkhauser, R. V. (2020). Minimum wages and poverty: Will a $9.50 federal minimum wage help the working poor?. Southern Economic Journal, 76(3), 592-623.
Wessels, W. (2019). Minimum Wage. Encyclopedia of Contemporary American Social Issues [4 volumes], 2, 229.
Furman, J., & Parrott, S. (2017). A $7.25 minimum wage would be a good step in helping working families escape poverty. Washington, DC: Center on Budget and Policy Priorities.