America and Wages: The Minimum Wage Debate

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America and Wages The Minimum Wage Debate

• Group 12 George Green
• Brian Elston
• Preston Davenport
• Franklin Heathley

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History of the Minimum Wage

• Great Depression
• June 25, 1938 Roosevelt Signed the Fair Labor
  Standards Act (FLSA)
  
• Banned oppressive child labor
• 25 cent minimum hourly wage
• Maximum workweek of 44 hours

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History of the Minimum WageControversy

• "Do not let any calamity-howling executive with
  an income of 1,000 a day, ...tell you...that a
  wage of 11 a week is going to have a disastrous
  effect on all American industry. Roosevelt
• National Industrial Recovery Act (NRA) 1933
• Supreme Court
• Hammer v. Dagenhart
• Adkins v. Childrens Hospital
• Schecter Corp v. United States
• (Black Monday 1935)
• West Coast Hotel Company v. Parish
• (White Monday 1937)

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Minimum Wage A Brief Introduction

• The most recent change was in 1997 from
  4.75-5.15.
  
• Democrats currently want a 1.50 increase in the
  minimum wage over 18 months, while currently Bush
  as stated that he would sign an increase in the
  federal minimum wage if it allows states to make
  their own minimum wage.

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Who are minimum wage earners?

• Most minimum wage earners are concentrated in
  service, agriculture, and sales occupations.
  
• The lowest paid job in America is food services
• 17 million Americans are minimum wage earners.

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Race and Sex
Sex and Age
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Why is an increase in the minimum wage good for
society?

• The better workers are employed.
• The minimum wage reduces poverty.
• An increase would help working families at the
  bottom income level.
  
• Some people who work for minimum wage never see
  an increase.
  
• There has been little or no effect on increasing
  unemployment when the minimum wage rises.
  

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Why is an increase in the minimum wage bad for
society?

• Most minimum wage earners are teenagers or are
  providing supplemental income to a primary wage
  earner
  
• Decreases amount of entry level positions
• Makes it hard for small businesses to survive

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Who is really being helped?

• 85.1 percent of those affected by the 1996 hike
  live with their parents, were single and lived
  alone, had a working spouse, or lived with
  extended family members.

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Decreases opportunity for entry level workers to
gain much needed experience

• Most Americans increase their incomes by 30
  within their first year of employment.
  
• Minimum wage jobs exist as stepping-stones into
  higher wage brackets, giving workers the
  experience they need to succeed
  

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Minimum wages make it difficult for small
businesses

• Businesses must cut workers or hours
• Higher fewer, but more skilled, workers
• Reduce benefits such as health care, flexible
  hours, or employee discounts

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The Living Wage A Possible Alternative to
Nationwide Minimum Wage Increases

• What it is and who it covers.
• Where it is.
• What the experts say
• Positive aspects of the Living Wage
• Negative aspects of the Living Wage

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In Conclusion

• The minimum wage debate rages on despite support
  from both sides.
  
• After taking a brief look at each side of the
  issue, and the proposal of a living wage
  alternative we can all now take a more educated
  look at an issue that will be with us for years
  to come.