Minimum Wage A State Of Economic Recovery - 777 Words

Victoria Pentecost Professor Xu Macroeconomics 2301 20 April 2015 Minimum Wage in America Twenty-Two years ago, President Clinton announced that his administration intended to seek an increase in federal minimum wage. The general consensus was really positive, and the public agreed that the increase was actually very overdue. However, many had reservations regarding how a raise in minimum wage would cause problems while the country was in a state of economic recovery. Both sides had political and economic merit, and an ongoing debate of the minimum wage continued into the next century. Today, the minimum wage has been pushed to the forefront of economic discussion again. To the average American, minimum wage could likely be how one makes†¦show more content†¦What factors go into deciding what jobs are worthy of anything more than the â€Å"bare minimum†? More and more states are deciding to raise their minimum wages to combat the higher costs of living in recent years. The current $7.25 minimum wage is, historically, somewhat low. In 1938, the minimum wage was .25c. That may read as a very low number, but when adjusted for current inflation, amounts to about $4 nowadays. The peak of America’s minimum wage was in 1968, at $1.60 (which amounts to around $10 today). Many studies have been conducted and show that the current minimum wage is not an amount that the general population should be expected to live on. A full-time (40 hour work week) hourly earner will, on average, bring home $1,150 a month, after social security and taxes. The average monthly rent for a single apartment in America is $1,099. That leaves about $51 a month for utilities, clothing, food, and transportation. This is statistically and strategically keeping people below the poverty line. Someone who is expected to continue their education past public school (provided they can graduate public school, considering all the fees involved), and simultaneously break the cycle of poverty is simply at a disadvantage. A main argument against raising the minimum wage is directed at the audience of people who would benefit from an increase. It is believed by many that the population of people earning minimum wage is dominated by suburban