Minimum wages in America

Payments established by legislative authorities or in contracts as the least that employees must be paid are referred to as minimum wages. The minimum wage policy in America is governed by a system of legislation that extends from the municipal to the federal sphere. Employers are required to pay their staff the legal minimum wage. The essay analyzes the minimum wage policy, its facts, and its advantages and disadvantages in the context of American politics, society, and the economy.
The idea of a minimum wage that is legally required was initially proposed by the progressive movement, which peaked after World War I. (Waltman 10). Championship of minimum wages in America can be traced to the year 1912 in Massachusetts whereby a commission recommended an application of minimum wages for women and children. Associations such as the National Consumer League and coalitions pressured state legislatures but eventually the principle was not upheld. In 1933, the Roosevelt administration made an attempt to establish a national minimum wage but the act was rendered unconstitutional in 1935. In 1938 the New Deal ideology secured the adoption of minimum wage law, which was set at $0.25 per hour but with limited application (Waltman 11). This underwent gradual developments and by the 21st century, the concept was immensely increased for instance in 2009 it went from $6.55 to $7.25 per hour.

Minimum wages is a policy that is factual and it broadly majors on various facets. In 1968, the federal minimum wage peaked at $8.68(2016 dollars) which currently is $7.25 per hour (Drew 12). This pattern is argued out that is low compared to the American economy. The U.S Department of Labor’s Wage and Hour Division outlines that 29 states have set their own higher minimum wages for instance; $11.50 in Washington D.C (Drew 13). It is also evident that about 20.6 million people are close to the minimum wage pay category workers who are mostly the young and the white. The food service industry is also noted as the biggest employer with near minimum-wage pay. Lastly, out of three minimum wage earners, two are women.

This economic policy has its pros and cons. Families have benefited because most working persons are parents. They therefore have been able to provide for their families as their pay is ideally not less than their work (Cunningham 34). Individuals making at least the minimum wage have reduced burdened tax as their need for public assistance is lowered. Small businesses as well are able to make their budgets accordingly as they have the know-how through the guiding minimum wage in place (Cunningham 28). Hiring for the young and unskilled personnel sine the common reference to the least payable amounts is stipulated. The cons of this policy is that is slows down the growth of jobs. The guaranteed minimum wages can slow small businesses as they may not be able to afford it hence limiting its expansion. It’s also a challenge that the application of this policy is done inconsistently for instance in June 2010 Washington’s minimum wage was the highest at $8.55 per hour while Alabama had no minimum requirement (Cunningham 12



Conclusion

The controversial debate to increase the federal minimum wage has been pushed over the years. Politicians including Barrack Obama and many Democrats have supported the move; however the Republicans have strongly opposed this initiative. Economic sector, employment opportunities, cost of goods and services, poverty and wages equality are among the factors that can be affected when the minimum wage is raised.



Works cited

Cunningham, Wendy V. Minimum Wages and Social Policy. Washington, DC: World Bank, 2007. Internet resource.

Drew De Silver. Federal Minimum Wage. Pew Research Center. 2017.

Waltman, Jerold L. The Politics of the Minimum Wage. Urbana [u.a.: Univ. of Illinois Press, 2000. Print.