A federal minimum wage was set for the first time in 1939 and equaled to twenty five cents per hour with the maximum workweek at 44 hours. It varied with time but currently the last change had even made in July 2009. Therefore the controversial question on rising federal minimum wage or not become a hot topic in a past few years. From the first sight it seems to be a good decision to rise the minimum wage in order to improve living standards, create more opportunities for jobs, and to promote interest in getting a job. On the other hand the rise of minimum wage may cause increasing in prices, layoffs and fewer haring, and reduction in the desire of career achievements. The debate on this question continue because it is deeper that it seems to be. Therefore, it reacquires secretion amount of researches and analysis to make a right decision and calculate all the effects it may cause. One of the perspectives after finish the minimum wage is a positive changes in living standards. The most significant benefice is that a pay rise will meet the basic needs and living expenses of Americans. Also, it may lead to decrease in reliance on government sponsored financial-aid programs. Ed Markey, member of the United States Senate, supported legislation to raise the minimum wage for America’s workers and said, ”No person in America should work full-time, or multiple jobs, and not be able to make ends meet. Millions of people in our country have been trying to climb into the middle class, but no matter how hard they work, they are stuck in the same place”. The minimum wage needs to match reality and give the opportunity to afford basic needs goods and to climb out of poverty. The reduction of poverty will cause middle class to grow and it will provide more stable economy with better standard of living. Nevertheless the converse opinion is that increase in the minimum wage will cause the price of goods to grow . The reason for this is that business in order to follow increased minimum wage will rise prices to stabilize their profits. Therefore, the change in minimum wage will not
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Katja Hall, CBI deputy director general said,” The minimum wage is already at the highest rate it can be without putting job creation at risk”. In other words any change can endanger the economy to become unstable. Employers may search for different ways to del with this situation such as replace workers with machines, requiring workers to be more efficient, and hire only high-skilled workers. Therefore, rising the minimum wage will cause poverty and unemployment percentage to grow. Finally, increase in minimum wage will encourage people who sick a job to get one. The fact that payment has raised may interest people in trying to apply for a work that will cause a positive movement in economics stability. Although the rise of minimum wage could promote interest to work it also may reduce the desire of career achievements. For example, students may be satisfied enough with their current job and prefer a stable income to an education and possible perspectives after. This tendency of complacency is harmful not only for workers but also for businesses who rely on high-skilled workers. The increase in minimum wage may cause a lac of skilled workers in spheres where they are highly
Katja Hall, CBI deputy director general said,” The minimum wage is already at the highest rate it can be without putting job creation at risk”. In other words any change can endanger the economy to become unstable. Employers may search for different ways to del with this situation such as replace workers with machines, requiring workers to be more efficient, and hire only high-skilled workers. Therefore, rising the minimum wage will cause poverty and unemployment percentage to grow. Finally, increase in minimum wage will encourage people who sick a job to get one. The fact that payment has raised may interest people in trying to apply for a work that will cause a positive movement in economics stability. Although the rise of minimum wage could promote interest to work it also may reduce the desire of career achievements. For example, students may be satisfied enough with their current job and prefer a stable income to an education and possible perspectives after. This tendency of complacency is harmful not only for workers but also for businesses who rely on high-skilled workers. The increase in minimum wage may cause a lac of skilled workers in spheres where they are highly