Minimum Wage In The United States
The issue of minimum wage in the United States of America has been turmoil in the recent past and up to this date. Minimum wage is the lowest amount permitted by the law or by a particular agreement such as that of the labor union. The concept of the minimum wage was established in 1938 by the federal government. The law was called the Fair Labor Standards Act and it also indicated the initial time that employers were legally required to pay his employees overtime pay for certain jobs. During that period, the law was passed the first minimum wage was $0.25 and it later on increased as time progressed. The current minimum wage is $7.25 per hour. However, over the recent past, the working class in America have been complaining about this amount and demanding it to be raised. Many political bodies have tried to give the appropriate responses to this challenge but have borne no fruits. The increase in the wages will enable the citizens to meet their daily needs more efficiently. Hiking the minimum wage will increase not only
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Various studies have proved that a crucial part of inducing growth in the economy is by raising the purchasing power of people. In other words, the more disposable income people have, the more they are willing to spend on goods and services thus putting it back into the economy. In return, this ensures that the economy grows. According to the White House, an increase in the minimum wage will increase the disposable income for about 28 million people which will, therefore, raise the bottom line of business in the whole country. Other than bringing about the economic growth it will also ensure the security and confidence of the economy. While this is depicted like an arbitrary reason, confidence in the economy comes with a ripple effect that stimulates spending, encourages investment, and reduces the interest rates thus making it easier for people to get credit and
Various studies have proved that a crucial part of inducing growth in the economy is by raising the purchasing power of people. In other words, the more disposable income people have, the more they are willing to spend on goods and services thus putting it back into the economy. In return, this ensures that the economy grows. According to the White House, an increase in the minimum wage will increase the disposable income for about 28 million people which will, therefore, raise the bottom line of business in the whole country. Other than bringing about the economic growth it will also ensure the security and confidence of the economy. While this is depicted like an arbitrary reason, confidence in the economy comes with a ripple effect that stimulates spending, encourages investment, and reduces the interest rates thus making it easier for people to get credit and