A Social Welfare Effect On Minimum Wage - 2084 Words

Throughout the 20th century and into the 21st century, there has been an intense debate on the impact minimum wage laws. There is unquestionably going to be a social welfare effect on minimum wage workers, whether wage changes are made at the local, state or federal level. The primary the aim of raising the minimum wage is to reduce the problem of rising income inequality in the U.S. by ensuring all workers receive what is deemed to be a fair wage by the government, which would theoretically increase the income of low wage earners and improve their standard of living. Hence, a plethora of economists has weighed the effectiveness of increasing such price floors in combating the issues of poverty and growing income inequality by utilizing different economic measures, especially unemployment. Therefore, by studying different places where the minimum wage has been raised, one can understand its impact on employment and ascertain its efficacy as a social welfare policy. Population Impact: When studying social policy, it is crucial to discern who is being affected by it. The population that is clearly affected by minimum wage laws is minimum wage workers and the industries in which they work in. In an analysis if Bureau Labor Statistics data, Drew DeSilver of the Pew Research Center found that of the 3.75 million people working near minimum wage jobs, the highest percentage of them are employed in the industry of restaurant/food service, where their real pay is likely higher dueShow MoreRelatedWorking Poor : The Work Poor Essay1277 Words   |  6 Pagestimes social policies are created to assist the people who are working but still struggle to get basic needs like food, utilities, gas, and medical. Poverty is a perpetuating cycle that is intended to keep the poor oppressed and discriminated against. Respectfully, this critique will address the social problems that are identified in the book, the major social welfare policy issues, the social values and beliefs that are critical and the implications for future social welfare policy and social workRead MoreThe Minimum Wage Policy And Function862 Words   |  4 PagesSocial Welfare Function Distribution and redistribution of basic income has always been a subject of debate in the United States. Devising a method of distributing and redistributing national resources among poor has always been a challenge among the scholars. The minimum wage policy and function has attempted to address the income inequity among the citizens of the United States. The work of Aboudi et al (2014), attempted to address this issue by proposing a model to be used for designing a basicRead More The Negative Effects of Raising the Minimum Wage Essay1552 Words   |  7 PagesIf we took away the minimum wage, we could wipe out unemployment completely because we would be able to offer jobs at every possible skill level. -- Michele Bachmann Proponents of raising the minimum wage claim that if the minimum wage was raised, then many economic and social problems would be alleviated. This contention is at odds both with economic principles and years of creditable research. The effect of raising or even having a minimum wage has been studied extensively and theRead MoreThe Minimum Wage War1167 Words   |  5 PagesStates’ social and economic development—Fair Labor Standards Act of 1938 (FLSA) or otherwise known as the Wages and Hours Bill. 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A minimum wage is the lowest monthly, daily or hourly that employers may legally payRead MoreThe Federal Minimum Wage Essay1035 Words   |  5 Pagesthe minimum wage, to poverty. According to the United States Department of Labor, â€Å"The federal minimum wage is $7.25 per hour† (â€Å"Wage and Hour Division†). Some people believe that a solution to this problem is to raise the minimum wage; however, doing so would ultimately result in a negative effect on the United States economy, businesses, and people. Two groups are affected directly by a change in the minimum wage: the company and the worker. Those in favor for increasing the minimum wage insistRead MoreHistory Repeats Itself, A Fight For Fair Wage1178 Words   |  5 PagesRecovery Act (NRA). The act suspended anti-trust laws so industries could enforce fair-trade resulting in less competition and higher wages. In the beginning of the NRA, Roosevelt promulgated a President’s Re-employment Agreement. 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I will discussRead MorePoverty in the United States1413 Words   |  6 PagesPoverty is a state or condition in which a person or community lacks the financial resources and essentials to enjoy a minimum standard of living that is considered acceptable in society. In the next few paragraphs I will explain some of the causes of poverty, some consequences of poverty and I will recommend a solution to tackling long-term poverty in the United States Explaining the causes of poverty is difficult because poverty itself is a very complex situation. The simple explanation of povertyRead MoreNickel And Dimed : On ( Not ) Getting1175 Words   |  5 Pages(Not) Getting By in America details the work of Barbara Ehrenreich who undertook an economic social experiment to see if single mothers can survive financially with low wage jobs by integrating into the role of single mother entering the workforce. Of course with every experiment there were conditions and limits, for Ehrenreich there were three rules she tried not to break. Ehrenreich was to survive on low wages in three cities across America and in order to best replicate the role of a single mother