Federal Minimum Wage Should Not Be Increased - 1005 Words

Introduction: Established by the Fair Labor Standard Act (FLSA), Federal minimum wage first went active October of 1938 starting at 25 cents an hour. According to The Bureau of Labor Statistics the minimum wage was not consistent until the start of 1978 and has increased 22 times since then to keep up with the rise on the prices of goods and services. The stretched period of times that minimum wage increased as well as inflation, the purchasing power of the minimum wage has decreased significantly during the time. The minimum wage is not cataloged to price levels, it has just been adjusted here and there to keep up with its loss in its real value (purchasing power) due to inflation. Minimum wage adjustments occurred alternately, often†¦show more content†¦How would a minimum wage increase effect employment and family income, businesses, and the economy are just a few of the main arguments. Typically any increase in wage also increases income right? Raising the wage in the perception of sm all business is not usually a good move for the economy. Poverty is an important factor when it comes the economy and minimum wage could be the solution to that. Employment and Family Income: A common solution to moving low wage workers’ away from poverty is raising the minimum wage to increase family income. They would receive higher pay that would increase their household’s income and would experience their family income to incline above the federal poverty threshold. Also workers who receive a higher wage because of the increase of a minimum wage would face receiving less benefits and paying a more expense tax. Raising the minimum wage could possibly result in a small number of low wage workers to be without a job and experience a decrease or decline in income because of a higher minimum wage. Additionally, effects of a higher minimum wage rely on the number of workers that consist in a low wage workers family; if those workers became unemployed (perhaps for how long?) and if there are other adjustments in family income. For example, the decline in a family’s