Raising Minimum Wage: A Case Study

In recent years, the issue of increasing minimum wage has been discussed. Dawn D Bennett-Alexander and Laura P. Hartman (2015) The Obama administration was quite aggressive in making sure wage and hour laws are complied with and employees get what they have bargained for (p. 778). Bennett-Alexander et al., (2015) defined minimum wage as the rate at which they must be paid if they work over a certain amount of time during the week (p.777). Basically. Saying minimum wage is defined as the lowest hourly, daily or monthly salary that employers may legally pay to workers. In 2011, Obama believed raising the minimum wage to $10.10 hourly (during a three-year period) would keep a family of three out of poverty. Minimum wage (Fair Labor Act) has been a controversial issue, since President Franklin Roosevelt established it (Barnett-Alexander et al., 2015, p. 782). While raising wages to increase employees pay, some worry it may also reduce hiring. …show more content…
Raising minimum wages increases the wages of low-income workers giving them more money to spend on goods and services. When citizens are spending more the increase in consumption helps the economy of the country. Decrease in government spending especially in the welfare programs, since employees will be able to provide for their own needs. The advocates of the law, primarily unions, and other workers, believed that minimum wage would provide everyone with sufficient money (if minimum wages were increased) in which to live without causing economic harm to business owners, however, the problem is the growing gap (Bennett-Alexander et al., 2015,