The Minimum Pay Wage is the earnings of those entering the workforce. Moreover, the retired workers trying to make ends meet. With the POTUS looking past the concerns of both these demographics. It is a wait and see-game on how they will end up.
Hey, glad to have you back. As of late, the Minimum Pay Wage has been at the forefront of a lot of daily news stations. In this article, I have gathered facts and scenarios to raising the Minimum Pay Wage.
Here you will discover how raising the wage will affect the country in numerous ways. Please as always, share your comments you will be helping others.
What is the difference between the living wage and the national minimum pay wage?
The minimum pay wage in the United States is set by a network of federal, state, and local statutes. Workers generally must be paid no less than the statutory minimum wage as specified by either the federal, state or local government. As of July 2009, the federal government mandates a nationwide minimum wage level of $7.25 per hour.
Effective January 1, 2015, there were 29 states with a minimum wage higher than the federal minimum.
From 2014 to 2015, nine states increased their minimum wage levels through automatic adjustments, while increases in 11 other states occurred through legislative or ballot changes.
The federal minimum wage peaked at about $10 in 1968, as measured in 2014 inflation-adjusted dollars.
Every employer of employees subject to the Fair Labor Standards Act’s minimum wage provisions must post, and keep posted, a notice explaining the Act in a conspicuous place.
Moreover, in all of their establishments to permit employees to read it readily. The content of the notice is by the Wage and Hour Division of the Department of Labor.
Minimum Pay Wage
The economic effects of raising the minimum wage are controversial. Adjusting the minimum wage may affect current and future levels of employment, prices of goods and services, economic growth, income inequality, and poverty.
The interconnection of price levels, central bank policy (CBO), wage agreements, and total aggregate demand creates a situation in which the conclusions are influenced by the underlying assumptions of the interpreter.
In February 2014, the CBO reported the theoretical effects of a federal minimum wage increase under two scenarios, an increase to $10.10 with indexing for inflation after that and an increase to $9.00 with no indexing:
- Approximately 16.5 million workers would have their wages rise under the $10.10 option versus 7.5 million under the $9.00 option.
- Employment would likely fall by 500,000 under the $10.10 option and 100,000 under the $9.00 choice, with a wide range of possible outcomes.
Minimum Wage Increases
Is Not For YouIs Not For YouIn 2014, over 600 economists signed a letter in support of a $10.10 minimum wage increase with research suggesting that a minimum-wage increase could have a small stimulative effect on the economy as low-wage workers spend their additional earnings, raising demand and job growth.
Also, seven recipients of the Nobel Prize in Economic Sciences were among 75 economists endorsing an increase in the minimum wage for U.S. workers and said: “the weight” of economic research shows higher pay does not lead to fewer jobs.
According to a February 2013 survey of the University of Chicago IGM Forum, which includes approximately 40 economists:
- 34% agreed with the statement that “Raising the federal minimum wage to $9 per hour would make it noticeably harder for low-skilled workers to find employment” while 56% were either uncertain or disagreed.
- 42% agreed with the statement that “…raising the minimum wage to $9 per hour and indexing it to inflation…would be a desirable policy”, with 32% uncertain and 11% disagreeing or strongly disagreeing.
According to a paper written in 2000 by Fuller and Guide-Stevenson, 73.5% (27.9% of which agreed with provisos) of American economists agreed that a minimum wage increases unemployment among unskilled and young workers while 26.5% disagreed with this statement.
Economist Paul Krugman advocated raising the minimum wage moderately in 2013, citing several reasons, including:
- The minimum wage was below its 1960s purchasing power, despite a near doubling of productivity;
- The great preponderance of the evidence indicates there is no negative impact on employment from moderate increases; and
- A high level of public support, specifically Democrats and Republican women.
Families with income more than six times the poverty threshold would see their incomes fall (due in part to their business profits declining with higher employee costs), while families with incomes below that threshold would rise.
Minimum Pay Wage/Online Business
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17 Numbers That Will Make You Realize Just How Pathetic The Federal Minimum Wage Is
62 The number of months since the last minimum wage increase, in July 2009.
12 The number of months between each of the last three minimum wage increases, to $5.85 in July 2007, then to $6.55 in July 2008, and finally to the current $7.25 minimum in July 2009.
23The number of states — not including Washington, D.C. — that have raised the minimum wage above the federal rate. The highest state minimum wage is in Washington state, at $9.32 an hour — still below the proposed federal minimum.
5.8%The purchasing power the federal minimum wage has lost to inflation since the last time it was raised, according to Pew data from 2013. The left-leaning National Employment Law Project reports that the real value of the minimum wage peaked in 1968 when its $1.60-an-hour rate would have been worth close to $10.50 in today’s economy.
$21.72What the minimum wage would have been in 2012 if it had kept up with worker productivity since the late-1940s, according to a study published last year.
1,532,000The number of hourly workers who were making the federal minimum wage in 2013, according to Pew. About 50.4 percent of these workers aged 16 to 24, and just under a quarter were teenagers. About 64 percent of them worked part-time.
An additional 1.8 million tipped employees, full-time students, disabled workers and others holding jobs exempted from federal minimum wage requirements earned wages of less than $7.25 an hour. The federal minimum wage for tipped workers is $2.13 per hour.
$267.80The weekly take-home pay for a 40-hour-a-week minimum-wage employee, after Social Security and Medicare taxes. That adds up to $13,926.38 per year or just over $1,150 per month. The commonly cited minimum wage annual salary for a 40-hour-a-week worker is $15,080 — before taxes.
$1,099The average monthly apartment rental price in the United States in the second quarter of 2014, according to real estate data firm Reis Inc. This is almost as much as you would make in a month on a single minimum-wage income, which is one reason why minimum-wage workers typically can’t afford to be the primary breadwinners of their families.
$163 The average a household pays for basic gas and electricity per month, according to an analysis of the spending habits ofusers across the nation in 2011. Utility prices have since risen in many places.
$3.34 The average U.S. price for a gallon of gasoline, as of the last week of September. If a car has a 15-gallon tank, it would cost around $50 to fill up. That is a full day’s pay on minimum wage.
On top of gas, drivers must pay for car insurance. Which according to a 2011 report came out to a nationwide average of around $800 a year. Premiums have increased in many places since, with estimates of average rates as high $1,500 a year. That would be more than a month’s salary for a minimum-wage earner.
54% The percentage of Americans who support raising the federal minimum wage to $10.10 an hour. According to a recent survey by the left-leaning Public Policy Polling.
Polls have consistently shown strong support for increasing the federal minimum wage. With a survey released in June showing, 71 percent of respondents favor raising the rate.
See You On The Other Side
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