Since minimum wage, in many cases, does not cover basic necessities of life, many people that survive on minimum wage spend all — or virtually all — of the money that they make. On top of this, an increased minimum wage may also lead to an increase in the hourly pay of other low-wage workers that only make slightly more than the federal minimum wage. This increased purchasing power across the board helps stimulate the economy and benefits small businesses, many of which were hardest hit by the recession.
History[ edit ] "It is a serious national evil that any class of his Majesty's subjects should receive less than a living wage in return for their utmost exertions.
It was formerly supposed that the working of the laws of supply and demand would naturally regulate or eliminate that evil [ But where you have what we call sweated trades, you have no organisation, no parity of bargaining, the good employer is undercut by the bad, and the bad employer is undercut by the worst In the autumn ofthe Black Plague reached England and decimated the population.
Subsequent amendments to the ordinance, such as the Statute of Labourersincreased the penalties for paying a wage above the set rates. An amendment to the Statute of Labourers in effectively fixed wages to the price of food. As time passed, the Justice of the Peacewho was charged with setting the maximum wage, also began to set formal minimum wages.
The practice was eventually formalized with the passage of the Act Fixing a Minimum Wage in by King James I for workers in the textile industry.
As trade unions were decriminalized during the century, attempts to control wages through collective agreement were made. However, this meant that a uniform minimum wage was not possible.
In Principles of Political Economy inJohn Stuart Mill argued that because of the collective action problems that workers faced in organisation, it was a justified departure from laissez-faire policies or freedom of contract to regulate people's wages and hours by the law.
It was not until the s that the first modern legislative attempts to regulate minimum wages were seen in New Zealand and Australia. The sweatshop owners were thought to have unfair bargaining power over their employees, and a minimum wage was proposed as a means to make them pay fairly.
Over time, the focus changed to helping people, especially families, become more self-sufficient. For a complete list of global wages see: List of minimum wages by country. Minimum wage law and List of minimum wages by country The first modern national minimum wages were enacted by the government recognition of unions which in turn established minimum wage policy among their members, as in New Zealand infollowed by Australia in and the United Kingdom in However, some states do not recognize the minimum wage law such as Louisiana and Tennessee.
Some jurisdictions even allow employers to count tips given to their workers as credit towards the minimum wage levels.
India was one of the first developing countries to introduce minimum wage policy. It also has one of the most complicated systems with more than 1, minimum wage rates. So can international public opinion, by pressuring multinational companies to pay Third World workers wages usually found in more industrialized countries.
The latter situation in Southeast Asia and Latin America was publicized in the s, but it existed with companies in West Africa in the middle of the twentieth century. In the business sector, concerns include the expected increased cost of doing business, threats to profitability, rising levels of unemployment and subsequent higher government expenditure on welfare benefits raising tax ratesand the possible knock-on effects to the wages of more experienced workers who might already be earning the new statutory minimum wage, or slightly more.
Labour economics Supply and demand model[ edit ] Graph showing the basic supply and demand model of the minimum wage in the labor market. Supply and demand According to the supply and demand model of the labor market shown in many economics textbooks, increasing the minimum wage decreases the employment of minimum-wage workers.
The minimum wage will price the services of the least productive and therefore lowest-wage workers out of the market.Prominent Members of Congress have proposed raising the minimum wage to $15 per hour, more than doubling the federal minimum wage.
States with lower costs of living would see an even greater real. The wage applies to workers in both agricultural and non-agricultural jobs. Although there are some exemptions, most workers must be paid the minimum wage for . Jul 24, · Answers to questions ranging from "how often does the minimum wage increase" to "who ensures that workers are paid at least the minimum wage?" What is the Minimum Wage?
Additional information about the minimum wage. Jul 27, · “Raising the minimum wage for everyone says something profound and profoundly good about the society we want to live in,” said Dan Cantor, national director of the Working Families Party, which has helped secure minimum wage increases in several cities and states across the country.
While the idea of raising the minimum wage is broadly popular, efforts to do so at the national level have stalled. We gathered key facts looking at the issue. this minimum wage is very convenient for the big guys to pick up cheap help from the really small business when the rents, taxes and city mandated cost increase cause micro stores to close up.
the trend now is for the amazons and alibabas to take over the bricks .