Minimum wage
the lowest hourly wage
Facts/History
federal minimum wage is $7.25 an hour in the U.S.
The federal minimum wage peaked at about $10 in 1968
Some economic research has shown that restaurant prices rise in response to minimum wage increases
Impact on world
In the United States, statutory minimum wages were first introduced nationally in 1938
Effective January 1, 2015 there were 29 states with a minimum wage higher than the federal minimum.
Minimum wage jobs rarely include health insurance coverage, although that is changing in some parts of the United States where the cost of living is high
People's opinion
- opponents of the minimum wage say it increases poverty,increases unemployment and is damaging to businesses
- supporters say it increases the standard of living of workers, reduces poverty, reduces inequality, boosts morale and forces businesses to be more efficient
Relation
- Classical economics argues that raising the price of something results in a lower quantity demanded, in this case fewer workers.