The Pros and Cons of Minimum Wage Essay

1294 Words 6 Pages
Increasing the minimum wage may help hard working families make ends meat. The first federal minimum wage in 1938. Started at $.25 an hour. In 1968 it reached its peak value. Since then the value has fallen thirty percent, so that today’s minimum wage of $5.15 is equal to $4.18 which is equivalent to the value in 1995 (women, 4). Some states have decided to raise the minimum wage above $5.15 an hour even though the senate ultimately sets the minimum wage. There was a push to raise the minimum wage two dollars in the next two years. The average yearly income for a person who works minimum wage is around $19,000. In the United States there are over 1.6 million minimum wage workers. Fifty-three percent of minimum wage workers are high …show more content…
All three families had an increase in there gross income but there disposable (how much could actually be spent) income did not increase a lot. This was because all families got support from federal Food Stamps and Earned Income Tax programs. The other two things mentioned that these families benefited from were greater access to bank loans or other forms of credit to purchase homes or get higher education and the other was dignity. It has been found that the vast majority of people in this country would prefer to work for a decent wage than to receive government or welfare benefits. (New Orleans, page 15) The government also benefits when workers earn more money because they aren’t as dependant on federally funded programs like food stamps. The New Orleans report also felt business in poor neighborhoods would benefit because workers would spend there money in their neighborhoods.
Just as many people however are against raising the minimum wage. They argue that job losses will occur. Employers may need to pay workers more money in wages than they are receiving in labor. An example is that McDonalds can install a French fry basket loader that loads a specific amount of fries into a basket. This job was previously done by a minimum wage employee.
Such jobs that pay minimum wage are fast food worker, a person who washes dishes, waiter or waitress, a person who works a cash register or a bus boy/girl who

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