The regulations on minimum wage in the US are set through collaboration and agreements between the local statutes, states, and the government. This implies that no worker should receive a minimum wage less than that is specified by the minimum wage regulation or bill. Currently, the minimum wage bill in the US puts the minimum wage to be $7.25 with proposals to further increases to $15 shortly with some cities such as California having passed the bill. Minimum wage in the US sets back to the year 1938 when the first minimum wage was set as $0.25 in line with the labor act to promote fairness among the workforce. The minimum wage increases in the US labor force is directed towards solving the increasing income inequality among the workers
…show more content…
An increase in the minimum wage to $15 doubles the current minimum wage of $7.25. Some cities such as California, San Francisco and Los Angeles already have approved the proposals to increase the minimum bill to $15 by the year 2020. Policy makers hold different opinions on whether the proposal to raise the minimum wage is valid. Some are against the proposal while others support its implementation. The American population has experienced hard times due to the increase in the cost of living with stagnation on the wages. The increase in the minimum wage to $15 will increase the income of about 55.1 million people while increasing the aggregate income of the lowly paid workers by $104 million by the year 2020. The increase in the net income of the low-wage workforce in return will bring a related increase in their standards of living (A. Fowler and E. Smith 10). The income of those people who earn slightly higher than the current minimum wage is also anticipated to increase with the implementation of the policy. Increased income also implies that the people will increase their spending on local goods resulting into an increase in sales for the concerned businesses or industries. This transforms into growth in the economy of the state. Minimum wage increase would help in redistribution of income reducing income inequalities. The lowly paid would …show more content…
The increase would mean that the related industries where the people work will not be able to support the high wages. The industry profits would be drained, and that would see increased trimming of the available workforce to a manageable level. The increase would also mean that new workers in the employment industry will not secure jobs because no firm can recruit them. The policy makers against this proposal argue that, in California, about 191,000 people will lose jobs, and those vacancies will never be filled. The studies also attribute the hike in minimum wage to increase the chances of working without pay such as internships. College graduates are so likely to work without pay because the industries cannot afford to pay them the high minimum wage required. This would result in a reduction of the net income of the low-wage population simply because the majority are unemployed or work without
An increase in the minimum wage to $15 doubles the current minimum wage of $7.25. Some cities such as California, San Francisco and Los Angeles already have approved the proposals to increase the minimum bill to $15 by the year 2020. Policy makers hold different opinions on whether the proposal to raise the minimum wage is valid. Some are against the proposal while others support its implementation. The American population has experienced hard times due to the increase in the cost of living with stagnation on the wages. The increase in the minimum wage to $15 will increase the income of about 55.1 million people while increasing the aggregate income of the lowly paid workers by $104 million by the year 2020. The increase in the net income of the low-wage workforce in return will bring a related increase in their standards of living (A. Fowler and E. Smith 10). The income of those people who earn slightly higher than the current minimum wage is also anticipated to increase with the implementation of the policy. Increased income also implies that the people will increase their spending on local goods resulting into an increase in sales for the concerned businesses or industries. This transforms into growth in the economy of the state. Minimum wage increase would help in redistribution of income reducing income inequalities. The lowly paid would …show more content…
The increase would mean that the related industries where the people work will not be able to support the high wages. The industry profits would be drained, and that would see increased trimming of the available workforce to a manageable level. The increase would also mean that new workers in the employment industry will not secure jobs because no firm can recruit them. The policy makers against this proposal argue that, in California, about 191,000 people will lose jobs, and those vacancies will never be filled. The studies also attribute the hike in minimum wage to increase the chances of working without pay such as internships. College graduates are so likely to work without pay because the industries cannot afford to pay them the high minimum wage required. This would result in a reduction of the net income of the low-wage population simply because the majority are unemployed or work without