Minimum Wage Research Papers

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Research Project: Price ceilings and floors A government-imposed price floor is minimum wage. The government sets a minimum amount that a company must pay an employee. Every industry is affected by this price control. Every company in the country has a government-imposed price that they cannot go under when it comes to paying their employees. Every state has their own separate minimum wage price. The current minimum wage for Ohio is $7.85. Congress under the Fair Labor Standards Act first established minimum wage in 1938. The original purpose of minimum wage was to stabilize the post-depression economy and to also protect all those in the work force. Another purpose of minimum wage that is still in effect to this day is to create…show more content…
The reasoning being job lossduring the Great Recession combined with higher wages like construction, manufacturing and finance hard, also job growth has is in low-wage industries. This is not a short term trend and the government is showing that to protect its citizens from going below their standard of living, hitting poverty level, more consumers spending and protecting them from employers. The standard of living is different from whomever you may talk to. Setting a minimum wage deriving from ones standard of living has many aspects to it such as; general economic conditions, nominal gross domestic product; inflation labor supply and demand, business operating costs and the number and trend of bankruptcies. Every-one citizen needs to have minimum salary needed to maintain minimum living standard. That salary is derived from the factors previously stated to form a feasible rate one can live off…show more content…
Minimum wage will always be talked about, critiqued and have voters for and against the idea. Minimum wage is a government-imposed price floor. Every company that demands labor in any way is required to obey the government-imposed price that they cannot go under when it comes to paying their employees. The current minimum wage for Ohio is $7.85. Companies could abuse their employees without this price floor. Minimum wage started in New Zealand during the late 1800’s and has been a huge aspect of our evolving world. The increase in minimum wages increases the economy by increasing consumer spending, without adding to the federal, state and even local budget deficits. A raise of the minimum wage puts money into the pockets of most low income citizens, who immediately give it right back to the local businesses to pay for their standards of living. This is NOT a short term trend and the government creating the environment to protect its citizens from going below their standard of living, hitting poverty level, more consumers spending and protecting them from employers all by using the aspects of minimum wage. As President Obama states, “Raising the minimum wage means that the income required for basic needs is delivered in a one-step approach, via the paycheck directly from firm to worker, rather than requiring additional government expenditures.” Democrats and President Obama are in
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