Higher Minimum Wage

In: English and Literature

Submitted By hobofred
Words 298
Pages 2
Next month, people in SeaTac will vote on Proposition 1-- it would lift the minimum wage to $15 an hour for workers at the airport and its nearby hotels, parking lots and car-rental agencies. That’s a 63 percent increase over Washington’s current minimum wage of $9.19 an hour, the highest of any state.

A year ago, Jorge Sanchez of Long Beach, California was struggling to support his family on $9.75/hour as a dishwasher at a hotel.
Sanchez, 56, threw his support behind hiking the minimum wage to $13 an hour for hotel workers in this city just south of Los Angeles.
But the Colombia native soon experienced an unintended consequence: The same month he got a $3.25-an-hour bump in pay, Sanchez’s employer cut his workweek from 40 to 30 hours.
“Measure N was good because it raised our wages. But what the hotel did was cut our hours, so it hasn’t made a change,” he said.
Unlike Sanchez, Hilton bellman Donald Blackwood still works a 40-hour week and pulls in an extra $800 a month thanks to the city’s “living wage” law.
“Now, I have enough money saved up to buy a car,” he said.
Both the SeaTac and Long Beach measures are part of a stepped-up effort by labor and community activists nationwide to end what they call poverty-wage jobs.
In Seattle, both mayoral candidates are plugging an hourly minimum standard of $15 or more.
Prop. 1 proponents say it would lift low-wage workers out of poverty and give them more money to spend at local businesses, pumping an additional $54 million into the economy. Opponents say it would drive up labor costs and force employers to lay off workers, reducing jobs by 5…...

Similar Documents

Minimum Wage

...Minimum wage In our country so many people live in poverty. Even if they are working hard and doing everything right. Except the government who has been spending so much money on foreign soil that we have none left to spend on ourselves. Minimum wage is not as high as it should be with all of these outrageous prices and spikes in gas and food. It should at least be bumped up to eight dollars an hour starting out or maybe more. In these times of need we need companies to start appreciating there help instead of working them to death with little to show for it. I understand that our country is in crises with the economy being so bad. I also understand that we should help other countries if we can because we may need help in the future and making allies is a big deal. And, on a cynical level, I suspect that the government may know more about this kind of stuff than we do. Nevertheless, the government’s solution to cut pay or lay off hardworking people is unfair to our country and to the everyday, hardworking people of our country. Knowing how it feels to be a hardworking American I support the raise in minimum wage. Having two children and a husband who is not working being a single working household, I know how hard it is trying to live on minimum wage. I probably have the least amount of bills a person can have but we still struggle every day. The government’s decision not to raise the minimum wage already is turning people against everything it stands......

Words: 454 - Pages: 2

Minimum Wage

...2013 Minimum Wage Minimum wage has to change for the better. Americans live in poverty every day, and minimum wage is not sufficient to survive. An employee gets 40 hours a week at $7.25 an hour which comes to $290 a week. Poverty is all a person can expect unless changes can be reached. When the minimum wage increases millions benefit and Individuals working will find their income increased by thousands of dollars a year. This can only strengthen the economy and promote businesses to thrive. The Washington Post stated that 13.2% of all Americans lived below poverty level in 2008. (The Washington Post, 2008). An increase in revenue would be a 40 hour work week with an increase of $1.00 an hour would be a total of $2,080.00 a year. Does not sound like much but for some it could mean the difference in a roof over their heads and food to eat. Society is over whelmed with individuals on welfare and food stamps. What if we did not have a minimum wage law, employers could charge whatever the market will bear, we would still have food stamps and welfare. What if the government discontinues all food stamps and welfare, this forces people to work. Without food stamps and welfare individuals have no choice but to work or starve. Eliminating the easy way humans adapted to change by finding work. Willingness to survive will make people do things they would not normally do. Money is the key to survive, we all need it to live. An increase in the minimum wage......

Words: 562 - Pages: 3

Minimum Wage

...Introduction This critical literature review will focus on the impact of the National Minimum Wage on employment. This is an area we have had to familiarise ourselves with more and more throughout the last ten years because of the controversial effect of its instalment in April 1999 and its ever increasing minimum wage amount which causes most concern. The application of a few statistics should help summarise the ever increasing minimum wage and the sheer scale of people affected by its introduction. The national minimum wage has increased by a staggering 59% in the last ten years; from £3.60 in April 1999 to £5.73 in October 2008. (HRM, 2008) According to George Sayers Bain (1999) as from April 1999, the year of its instalment , “some two million low paid workers will gain. To put that into a different context is one in twelve employees; one in three house workers; one in five part time workers. The obvious reason for its introduction was to reduce poverty pay levels while at the same time decreasing the wage differentials of the minimum wage to the median wage of all workers. This is known as ‘the bite’ and is commonly used to assess the effectiveness of the minimum wage. (LPC, Low Pay Commission, 2007) As stated above the intention of this review is to firstly establish the effect of the National minimum wage on employment; justifying it as a positive, negative or mutual effect. Secondly to help incarcerate the purpose even more the retail sector will be focused on...

Words: 2214 - Pages: 9

Minimum Wage

...A huge controversy in the economics world in 2012 has been a possible raise of the minimum wage from $7.25 to $9.00. Many supporters of this increase believe that a $9.00 minimum wage would enable many adults to make enough money to live off for a year. This wage increase would give low-income families a chance to make more money to support themselves and their families. Following this, supporters say these so called “low-income” families would spend more, thus resulting in an increased flow of money in the economy. However, what these supporters do not see is, many of these families will go to large department stores or super stores to make their purchases. With these large stores getting all the money many small businesses will be forced to close their doors. In addition to small businesses losing these customers, employers will be faced with another tough decision. In many small businesses employees are paid based on their skill, position, or time of employment. Many of these workers are paid the minimum wage because employers of a small business are unable to pay them any higher in order to keep their store or shop open. So what happens? Employees that currently being paid $7.25 will now be paid $9.00 and those higher level employees being paid $9.00 would be also given an approximant pay raise to $11.00 per hour. Now, how does this hurt small business owners? Here is a possible scenario. Max is the owner of a small sports shop in Waverly that has been open for ten......

Words: 866 - Pages: 4

Minimum Wage

...RAISE THE MINIMUM WAGE TO $14 AN HOUR USING THIS ONE WEIRD TRICK! February 26, 2014 Share on facebook Share on twitter Share on email Share on print More Sharing Services 1.1K Democrats believe they've hit on the perfect issue to distract from the horror of Obamacare in the 2014 elections: the minimum wage. Apparently, increasing the minimum wage was not important for American workers during the first five years of Obama's presidency -- least of all his first two years, when Democrats controlled Congress and could have passed anything. (And did!) No. The minimum wage did not become a pressing concern until an election year in which the public's hatred of Obamacare is expected to be the central issue. As The New York Times explained, Democrats see the minimum wage as an issue that "will place Republican candidates in a difficult position," and also as a tool "to enlarge the electorate in a nonpresidential election, when turnout among minorities and youths typically drops off." (Unlike Republicans, Democrats consider it important to win elections.) To most people, it seems as if the Democrats are giving workers something for nothing. But there are always tradeoffs. No serious economist denies that increasing the minimum wage will cost jobs. If it's not worth paying someone $10 an hour to do something, the job will be eliminated -- or it simply won't be created. The minimum wage is the perfect Democratic issue. It will screw the very people it claims to help, while......

Words: 1113 - Pages: 5

Minimum Wage

...The Business of the Minimum Wage • Quantity demanded of employees decreases when quantity supplied of potential employees increases, as minimum wage increases from $7.25 to $10.10. • The green dot shows original equilibrium, when minimum wage was at $7.25. Raising Minimum Wage: WHO GAINS •Government receives higher income tax due to increase in wages. •Low income families are likely to receive more positive impact from new increase wages. WHO LOSES •Potential workers may face potentially unemployment since now employers may not hire as many employees due to increased wage expenses. •Consumers ends up paying a high price for goods and services. •Job market will shrink due to employers reacting to increased wage expenses. DIFFERENCE •Inflation rate will increase. IN IMPACT ASSESSMENT •Pros: To stimulate employers competition and to reduce lower labor turnover •Cons: The positive impacts of a new minimum wage is short-lived since costs and prices will react to this change.  Wage => Cost => End Price IS RAISING MINIMUM WAGE A GOOD IDEA? No, because the consequences outweigh the benefits. At first glance, the benefits are positive, but are in fact superficial. In the long-run, the positive impacts are minimal. Bibliography • Romer, C.D., March 2, 2013. The Business of the Minimum Wage. The New York Times, Retrieved from http://www.nytimes.com/2013/03/03/business/theminimum-wage-employment-and-incomedistribution.html?pagewanted=all&_r=0 •......

Words: 259 - Pages: 2

Minimum Wage

...the minimum wage, the time is now,” said Delegate Derek E. Davis, of Price George’s County. The increase in minimum wages has been a topic that has been on the rise with much controversy involved. President Obama wants state and lawmakers to increase the minimum wage from $7.25 to $10.10 per hour by 2018. Connecticut was the first state to pass the law, which will increase their minimum wage to $10.10 by January 1, 2017. Maryland is a year and half behind them, making the minimum wage $10.10 by July 1, 2018. The reason for Maryland’s delay is because they want to give businesses more time to adjust to the new and increasing price. The increases will be in steps. The first increase will be from now until July 2018, and will increase to $8 per hour on January 1, 2015. The second increase will be to $8.75 per hour in July 2016. The third increase will be to $9.25 in July 2017, and then the final increase to $10.10 in 2018. The graph below, from the congressional budget office website, shows the increases of wages over the time period. President Obama commended Martin O’Malley and other lawmakers for “leading by example” in hopes that congress will follow. However, some counties have been setting their minimum wages even higher than $10.10. Montgomery and Prince George’s counties have approved their minimum wage increase to $11.50 by 2017. However, businesses are going to be allowed to pay a lower training wage to workers under 20 years old. However, this increase in wages......

Words: 874 - Pages: 4

Minimum Wage

...Outline I. Introduction II. Minimum Wage Defined a. Past Minimum Wage Law b. Considerations III. Increased Minimum Wage and Employment c. Job Losses d. Unskilled Workers IV. Increased Minimum Wage and Poverty V. Increased Minimum Wage and Effects for Society e. Costs of Labor f. Higher Prices g. Individual Impacts VI. Constitutionalism h. Previous Court Rulings i. Free Contract VII. Demotivation Factors j. Education k. Promotions VIII. Minimum Wage Redundancy IX. Conclusion The issue of raising the minimum wage is a highly debated topic. This topic is one that appeals to people from all walks of life. During some time in an individual’s life, he has worked for minimum wage. There will always be the worker who feels he is not paid enough and the boss who feels that the worker’s pay is adequate for the work. “If there were only two economists left in the world, they would disagree about the minimum wage” (Mejeur 14). Minimum wage is basically the minimal amount that an employer can legally pay an employee for work on an hourly basis. Past laws governed that the minimum wage would increase every few years, with the last increase being in 2009 for $7.25 per hour (Funk & Wagnalls 1). Many people feel an increase is long overdue. Those people, however, are not looking at the entire picture. Increasing the minimum wage goes beyond simply giving people more money...

Words: 1938 - Pages: 8

Minimum Wage

...Minimum Wage: A Historical Perspective and its’ Future On June 18th, 2004, Senator Kerry announced his minimum wage plan, saying, “I’m running for President to build a stronger economy that lifts up families and expands opportunity for hardworking Americans. Today, there are workers, many of them women, struggling to get by on the minimum wage. That is wrong. We can do better. And together, we are going to change it. I want to build an America where working families can get ahead, where a family working fulltime does not have to raise their children in poverty.” (Burkhauser 1) Classical economists have proven for years that floors and ceilings on prices are bad for economies. So why do politicians, who call themselves progressive, continue to beat the drum of creating a living wage? The reason; to get more votes. A wage floor is strictly a political issue disguised as a social problem needed to help the poor. Raising the minimum wage has taken on a fever pitch in Congress this year, regardless of the fact that there is not a widely accepted empirical economic study suggesting it is the correct policy to assist the working poor. This paper consists of research conducted by the author from both the government activist and laissez-faire positions. In addition to the list of works cited at the end of this paper, several public policy institute web site were reviewed for pertinent material. These sites include: the Heritage......

Words: 3439 - Pages: 14

Minimum Wage

...Another incentive to increase the minimum wage is the fact that living costs simply do not add up for minimum wage workers. That is to say, the current minimum wage simply does not match the current living wage for most of these Americans. A living wage is essentially the income necessary for a person to provide for themselves or their family. In a 2014 article for CUNY’s New Labor Forum, Peter Dreier recalled the introduction of the term “living wage” itself removed stigma attached to low-wage workers because it revealed the problem not as a situation of people who are in poverty due to bad decisions and lack of intelligence or motivation but rather as a situation where mothers, fathers and children’s can’t even make the means to meet their basic physiological needs despite working full-time, (Dreier, 2014). Economists calculate recommended living wages based on the cost of living in a given area and the housing size as well if it is a single parent household. According to the U.S. Department of Labor, the current minimum wage was determined by amendments passed by the Fair Labor Standards Act in 2007 that proposed it would be incrementally be raised to $7.25 per hour effective on July 24, 2009, (U.S. Department of Labor). This rate has not increased since then despite ever-increasing living costs and despite the fact that productivity has risen, where productivity is measured by how much output can be produced in an average hour of work. According to analyst Lawrence Mishel...

Words: 655 - Pages: 3

Minimum Wage

...The degrading value of our minimum wage has proven to be a hurdle to society. States have taken an individual approach to ensure their citizens are successful. Increasing the minimum wage would be beneficial by reducing poverty, allowing workers to feel more stable, and stimulating our economy. A more positive lifestyle can be achieved with a higher minimum wage. By increasing the minimum wage, the national issue of poverty would be reduced. No one will have to question when or where they will be able to sleep tonight. According to a Greenhaven Press article, “The 1956 minimum wage is worth $7.93 in today's dollars” (Sklar 1). Today’s minimum wage is roughly 8.6% lower than almost 60 years ago. In a 40 hour workweek, workers earn $27.20 more than today. That might not seem like much, but it quickly adds up. People are unable to get by on $7.25 an hour. Some can’t even get by on that. In addition, even President Barack Obama agrees that the wage should be raised. In his state of the union address, he said “A higher minimum wage, these ideas will make a meaningful difference in the lives of millions of families” (Obama 1). Even the president - someone who makes $475,000 a year believes the rest should be helped. Less than $20,000 is simply not enough. Raising the minimum wage can help many. In an article by Mike Korzal from the Washington Post, Korzal claims, “Using this as an estimate, raising the minimum wage to $10.10 an hour, as many Democrats are proposing in 2014,......

Words: 906 - Pages: 4

Minimum Wage

...arguments for and against raising the minimum wage are almost unavoidable in the labor market, with each side having individually strong points. Advocates say that anyone who works 40 hours a week or more deserves to earn a decent living wage and get out of poverty, while opponents argue that high wages cost jobs. Most of the arguments for increasing the minimum wage are more emotional pleas and theories with very little evidence for achieving the desired outcome. The truth is that raising the minimum wage does not lead people to get out of poverty, but what it does is make it more difficult for younger workers to find entry-level jobs to build their skills. By raising the minimum wage, experts argue that it will make it more difficult for younger workers entering the workforce to get a job. Employers will be hiring workers with more experience and skills, since they can attract these workers with higher wages. Therefore, raising the minimum wage may be causing more harm to a younger workforce looking to find their first job to gain relevant work experience. Our country needs to focus on the inconvenient truths about the real impact around raising the minimum wage. Some of these inconvenient truths are highlighted by the research that clearly shows how raising the minimum wage may cause more harm than good, and have significant consequences to the younger and entry-level workers vs. the emotional theories that state increasing the minimum wage will get more people out of......

Words: 2622 - Pages: 11

Minimum Wages

...THE MINIMUM WAGES ACT, 1948 ________________________________________ The need for a country of having minimum wage-fixing machinery was stressed by the International Labour Organisation long back in 1928. Twenty years later our country passed the Minimum Wages Act, 1948. The reason given by the Government for passing the Act was that workers' organisations in the country were poorly developed and consequently their bargaining power also was very poor. Like the Payment of Wages Act, 1936 this Act also is exhaustively amended by many States to widen its scope and application. The Act is a boon to a large number of poorly paid persons in this country. Object of the Act To provide for fixing minimum rates of wages in certain employments Fixation of Minimum Rates of Wages • The appropriate government to fix minimum rates of wages. The employees employed in Para 1 or B of Schedule either at 2 or either part of notification u/s 27 • To make review at such intervals not exceeding five years the minimum rates or so fixed and revised the minimum rates. Government can also fix Minimum Wages for (a) Time work (b) Piece work at piece rate (c) Piece work for the purpose of securing to such employees on a time work basis (d) Overtime work done by employees for piece work or time rate workers {Section 3} Minimum Rates of Wages Such as Basic rates of wages etc. Variable DA and Value of other concessions etc. Sec- 4 Fixing Hours for......

Words: 1471 - Pages: 6

Minimum Wage

...indefinitely on a job that pays $7.25 an hour? That is the national minimum wage set by the Fair Labor Standards Act in 2009. Projecting this to a 40-hour work week over 50 weeks it comes to a total of $14,500 a year. This is just above the U.S poverty level for a family of 2, but below the poverty level of $22,050 for a family of 4. Despite the fact that the minimum wage has been increased 3 times since 2007, it is almost $3.00 below what it was nearly forty years ago in purchasing power. It has not kept up with inflation. If it had, the minimum wage would be $10.74 per hour. In other words, the minimum wage is a far cry from being a living wage which is a wage that is high enough for fulltime workers to provide a decent life for themselves and their families. For the benefit of American citizens and the economy, the minimum wage must be increased! Those opposed to an increase in the minimum wage focus on a number of assumptions suggesting it would be a bad idea. Under close examination, all of their arguments fall apart.   One of the main arguments for not raising the minimum wage is that it is a job killer. The reasoning is the increase in salary decreases profits and results in cutbacks in hiring. However, a study at the University of California, Berkeley, has shown that raising the minimum wage does not have a negative effect on employment. An analysis of those states that independently increased the minimum wage “had job growth slightly above the national average.”......

Words: 1051 - Pages: 5

Minimum Wage

...Minimum wage legislation has been a topic of discussion for many years among economists. The first laws were introduced in Australia and New Zealand in order to protect minimum standard living for unskilled workers. At this point more than 90% of all countries have some kind of minimum wage legislation. However there are countries that do not set the minimum wage among those are: Germany, Finland, Iceland, Italy and other counties. Germany is the largest national economy in Europe. According to Central Intelligence Agency GDP of the country in 2011 is $2.94 trillion with real growth rate of 3.5%. Based on Trade Economic data unemployment rate of Germany in October 2011 was 6.5%. Despite the fact the Germany does not have a set minimum wage the average wages in western Germany is 27.9 euro per hour and 17.4 euro per our in Eastern German (source http://export.gov/germany based on data from 03/2011). The wages there are higher than average wages in European Union or worldwide. Of course there are laws of the German Government that regulate dismissal of workers/maternity leave/ vacation/health benefits; but not minimal wages. Minimum wage is set by the Government in order to protect unskilled workers. It provides employees with guaranteed minimum amount of income from their work to survive and pay their bills. It protects mostly adults from loosing their jobs to teenagers or foreigners that are ready to work for less than a minimum wage. However there are...

Words: 935 - Pages: 4

The Judges Do Battle, Pt. 2 | 6 Pregnancy Test Ultra Early 10mIU Home Urine Kits SHIPPED DAILY! One Step® | Women, Sex, Power, and Pleasure: Getting the Life (and Sex) You Want