Essay on A Brief Note On The Federal Minimum Wage

1910 Words Mar 31st, 2016 8 Pages
Over the past few years, the federal minimum wage has been the subject of much political and social debate. The federal minimum wage was passed in 1938 to provide a standard of living and fair wages to low-skilled workers. Throughout its history, the federal minimum wage has been adjusted periodically to maintain its real value, which is continually lost due to inflation. Republicans oppose an increase in the minimum wage because they believe it will increase unemployment and harm our economy. On the other hand, Democrats support the raise by citing evidence from past minimum wage increases, in which there was little to no effect on unemployment rates. In addition to this argument, the two parties debate how much a minimum wage increase will benefit low-income families in poverty and if a better alternative for combatting poverty may exist. The most commonly proposed alternative is to provide a more generous Earned Income Tax Credit, which helps boost the after-tax incomes of low-income families, but this idea has been shot down by Republicans because of the increase in taxes and governmental spending needed for the larger EITC. In order to make an educated decision on whether or not to raise the minimum wage, it is important to examine the current federal minimum wage, the effects a higher minimum wage will have on the economy, and if a better alternative exists.
The federal minimum wage was enacted in 1938 in order to provide workers with a standard of living and fair…

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