Abolishing Minimum Wage
Increase, decrease or abolish minimum wage; which is best for our citizens and our economy? Minimum wage was implemented to help unskilled workers to make a living wage but as time goes on the value of minimum wage has plummet. In my research paper I will provide knowledge about minimum wage such as the history, purpose, benefits and the results. I will also present the pros and cons of abolishing the minimum wage and the increase/decrease of minimum.
The minimum wage was originally implemented in 1938 in the Fair Labor Standards Act setting an hourly wage rate at 25 cents. Throughout the years it has been raised multiple times and recently been raised to $7.25 an hour. Between adjustment periods and inflation increasing, the real value or the minimum wage has decreased. The minimum wage was supposed to help the poor, less skilled, younger workers, but rather it put these workers out of a job. This resulted from business owners believing that it wasn't worth employing anyone to doing something of value that was less than what they were paying them. The minimum wage ended up reducing jobs, which reduces the employees work experience which affects the economy. The minimum wage is a price floor, creating a surplus of labor. When workers work for less than minimum wage, they are working "under the table" which is illegal. Abolishing the minimum wage would have a great impact on both the employee and the business owner, and have an overall effect on the economy.
The minimum wage being abolished would greatly benefit the employee. It would give unskilled and unqualified workers, such as teenagers, college students, interns, and part time workers, the opportunity to be hired, with no discrimination or ranking system. Since there is no standard pay set, these workers will be hired at a low rate, a rate that the company is willing to pay. Cost of living differences in various areas of the country make a universal minimum wage difficult to set. These employees will be paid for the quality of work and their value rather than one set rate. This can help improve work performance and work moral by getting paid for how you do your work, so that someone who goes above their job requirements gets paid more than the person who only does the bare minimum. This helps raise work performance by employees wanting to do better to get paid better, and raises work moral by knowing you are getting paid for your quality of work, not just the same as the bare minimum person next to them. With no standard set, this gives entry level employees the opportunity to enter a job, and build their skill set, and experience, rather than being sent way, from the company not willing to pay.
Abolishing the minimum wage can benefit the business owner as well. They can pay the employees for their job skills, and the quality and value of their work rather than one set rate. This can help them improve customer service, and work performance, which benefits...