Economics CBA: Minimum Wage CBA Final Since its beginning in 1938, there has been an argument over whether or not minimum wage was a necessary part of the government. Some people think it is an unnecessary boundary for businesses wanting to spend their capital on other resources. However many business owners would take advantage of this and underpay their workers while keeping an incredible percentage of the revenue for themselves. The cycle of the employees spending their income on both needs and wants would be altered seeing as though there is only enough money for basic .needs. This in turn, would cause the economy to have a rapid downfall as non-need businesses everywhere went out of business. Which then un-employs more people, causing their income to plummet, and keeping the toilet bowl flushing. This is but one reason to maintain the minimum wage, but without it, our economy is going down the drain. Many would argue the minimum wage is perfect the way it is, in need of no increase. This usually comes from people who have never had to live while on minimum wage, and have little to no experience on the issue. While in reality, increasing the minimum wage is almost as much of a priority as making sure we still have it. It is vital for maintaining a strong and healthy economy. The United States’
Affonso 2 current minimum wage is $7.25. Which, translated into the average job of 8 hours a day, 5 days a week, amounts to a salary of a measly $15,080, or approximately $1,250 a month. Although this may seem like quite a substantial sum, the truth is that after the average rent of an apartment, about eight hundred dollars a month, only leaves $450, subtract another one-hundred dollars for transportation, and that leaves you with only $350 for food and other necessities. Even increasing the minimum wage just by $2.55 you can get another four hundred dollars for other expenses at the end of the month. Many states are already on the track to increasing the minimum wage. In recent months, states such as New York, Illinois, New Jersey, Connecticut, Missouri, and Massachusetts are pushing to raise their minimum wage to a minimum of ten dollars an hour. Meanwhile, Senator Tom Harkin, D-Iowa, is pressing for the federal minimum wage to rise to $9.80 per hour by 2014 (Auerback, Marshall). Nearly 8 million Americans go to work every day yet still live below the poverty line. That is in part because the federal minimum wage is too low. Currently, an individual with a full-time job at the minimum wage and a family of three to support will fall below the federal poverty line. These workers, despite putting in regular hours, are struggling to provide basic necessities for themselves and their families. By allowing the minimum wage to remain at a nearly unlivable level, we have deemed certain jobs not worthy enough to meet even our country's minimum standard of living (L.A. Times). If families