Abolishing the minimum wage

Name

University

Course

Date

Abolishing of Minimum Wage in USA

Introduction

The minimum wage is defined as the lowest rate per hour , day or month that employers may legally pay to employees or workers (Bob , 1997 Currently , minimum wage laws are found in more than 90 of all countries globally . The laws were initially enacted in the 19th century , and a country where minimum wage law was enacted first was in Australia and the New Zealand

Minimum wage has been supported by some people who argue that it

is a way of ensuring that all people can work in to afford their basic necessities . Other advantages of minimum wage include it does not give a budget burden on the government , increases social welfare program costs and growth of employment when the minimum wage is increased

On the other hand , minimum wage is thought to increase unemployment hurt small business and increase in inflation . The united stats of America established its minimum wage system in 1938 (Candace , 2005 ) the minimum wage has been 5 .15 per hour . This has been stagnant for nine years in the United States . The cost of living in the USA has risen by 26 percent

The USA senate rejected a proposal that was meant to raise the minimum wage from 5 .15 per hour to 7 .25 by the year 2008 . This remained unchanged for nine years

According to the EPI (Economic Policy Institute ) an estimated 14 .9 million workers who fall under the minimum wage payroll would have benefited from the proposal . Though the proposal was rejected some federal states increased the minimum wage rates through ballot initiatives and legislatives actions in to meet the need of their workers

Washington State in the USA had the highest minimum wage . This was as compared to the 49 remaining states , in February 2008 . The lowest minimum wage was in Kansas , but there was no enactment of minimum wage law in 5 states of the USA . These states used the Federal minimum wage

The issue of minimum wage is an issue that has raised a lot of concern in the United States of America . While some people assert that it should remain , others seem to think that it should be abolished . In this research , the arguments supporting the abolishment of the minimum wage will be discussed

Three issues that are affected by the minimum wage system are , its effects on workers , business Economy . In this these three issues will be discussed broadly

Discussion

One major effect of minimum wage is that it affects businesses especially the small businesses . The businesses due to the low income of the workers experience reduction in the profit from the businesses Businesses cannot get optimum gains from their businesses

Minimum wage causes inflation in the market . The low income reduses workers spending power leading to decreased profits . These decreased profits in turn make businesses to raise the prices of goods in to compensate for the decrease in profit...