Wednesday, June 4, 2014

Minimum Wage




Right now there are only 5 states and Washington DC that has increased minimum wage. Currently President Obama is advocating strongly for an increase to occur nationwide.  Even with the majority of people supporting this proposal, many lawmakers have not jumped on the Presidents bandwagon to enact this new policy. 

At the current rate of $7.25 per hour people can not make ends meet, so they need to rely on social welfare services such as food stamps and housing assistance to get by. If the minimum wage was increase to a more livable wage, then many would not have to rely on the government for basic survival.
Some opponents of a wage increase insist that it would be harmful to the economy causing employers to lay off worker but this really hasn’t been proven.  They believe small businesses would suffer because it would be too expensive to hire workers. However studies have shown when wages are increased, it actually helps the economy. When people make more, they spend more money.
This is not a new fight. We have been in an ongoing battle for higher wages. As stated by Segal in Social Welfare and Social Programs,  “… since 2006 the minimum wage stood at $5.15 per hour then gradually raised to $5.85 in 2007, $6.55 in 2008 and $7.25 in 2009.”
From 2006 to 2009 the minimum wage was increased each year despite the economic crisis in 2008. I guess the governments needed to take a hiatus with providing the working poor with the annual wage increases during the height of the economic crisis. But it’s now time that they allow minimum wage to catch up with cost of living.
President Obama is asking for the minimum wage to be increase to $10.10, you can help him with this fight. Go to this website and sign the petition.



Update: 
Seattle passes the nation's highest minimum wage of $15/hour.


8 comments:

  1. Janet,
    Thank you for sharing your views on minimum wage. With the rate of $7.25 it would be impossible for individuals to raise families, support themselves, and further their education. I must admit that the $7.25/hr. is much better than $5.25/hr. But either way, the minimum wage rate is economically horrible. When I think of the hourly rate of minimum wage, it makes me think about the recent video I viewed called “Spent”.
    “Spent” addressed many scenarios surrounding how to survive on a monthly income of $9/hr. or less, when faced with decisions such as what household bills should be prioritized and what bills should be ignored. Not making enough money to pay your bills, could put someone in the mental state of becoming depressed. Depressed because many people have a lot of pride and do not want to rely on Social Welfare programs such as SNAP (Supplemental Nutrition Program) and PHA (Philadelphia Housing Authority.
    I stand by President Obama with his fight to increase the hourly rate of minimum wage to $10.10/hr. Count me in, my vote will be submitted.

    ReplyDelete
  2. Janet yes you raise a great point about raising minimum wage, which I do agree it should be raised. I notice you also express that minimum wage should be raise to a reasonable amount to fit the cost of living, but at the same time most jobs are not granted employees with the cost of living raise. I believe that when you get into raising the minimum wage to a high level of fifteen dollars an hour it cause more damage than good my reasoning is take us as student who went to school to get an education to make more money having to pay back loans, and is offered a job making fifteen dollars and hour you would be offended but at the same time you would take it because it is what you wanted to do in your career. Now imagine someone working at McDonalds for the same amount receiving cost of living raise because that is what the government is requiring. Mean while your still making the same amount and more if your employer feels the need to do the same. I believe it would become a big issue and still a lost in the economy if this was done. I do believe minimum raise should be raised but to a certain amount normally these jobs are basically for the purpose of starting out in hope to get something better in the future. Thanks Janet for that insight.

    ReplyDelete
    Replies
    1. Donna, I hear what you're saying, but I disagree with one thing: that most of the people receiving minimum wage are just starting out. I believe there are many, many jobs that offer minimum wage as a regular salary. In my job, you can work there for 20 years, starting at minimum wage, but never getting higher that $9.80. How is that fair? People working at McDonalds are working just as hard as anyone else, and many more workers than you think are there permanently. I'm with you that the minimum wage needs to be increased to a living wage. I also think that minimum wage should have to keep up with increased costs of living - isn't that the purpose of the minimum wage to begin with? To continually provide workers with AT LEAST a living wage?

      Delete
  3. I am in complete agreement with you! I earn less than $8.00/hour. It's more than minimum wage, but it's definitely NOT a living wage! I have co-workers who struggle each month to pay their bills and it is so hard for them! The problem is that most of the people who are in charge of setting the minimum wage have no idea what it is to struggle. They don't know what it's like to have to choose between food or health insurance! There are so many arguments that food stamps and other welfare services shouldn't be an option, or there should be stricter limits, but have ANY of these people tried to live the way the people receiving the services live? Do they have a clue as to how hard it is? Most likely not!

    ReplyDelete
  4. YAY- Angela- hopefully nationwide enough people sign the petition :)

    ReplyDelete
  5. Low income earners will always be fighting to pay bills, provide for their family, have proper dental or health insurance, because their is no low income earners in the house fighting for higher minimum wage. The people in the house does not know about going to bed without a nights' dinner or cannot go to doctor because they do not have health insurance, they will always fight to keep it down because they do not care about us, or should I say "they just don't know" laught out loud. Just saying!!

    ReplyDelete
  6. I agreement with you tremendously! And with everyone else who commented also. I do not earn $8.00/hour, but it's definitely not a living wage. My wife and I earn more than that and yet we still struggle to pay bills, rent, and have groceries in our fridge. I will admit its hard but as that game we had to play this week showed us, we have to be smart with our money and make right and smart decisions to live comfortably. The people who are in charge of setting the minimum wage, don't know or understand how it feels to be "Broke" and to struggle. Being "Broke" chances your mind set. Its great to have some type of government assistance in food stamps, but food stamps can't pay bills and I know plenty of people that sell their food stamps to pay bills and rent.

    ReplyDelete
  7. I agree on what Janet said about minimum wage because to make ends meet is very difficult, low minimum wage is affecting the life of so many people. They are relying on food stamp and other government support to live their life. But the point remains that they are working and they deserve a good pay. The cost of living is very high ,people have so many bills to pay and low minimum wage is not helping the matter. So if people are well paid in their job it will be of good benefit to them.

    ReplyDelete