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.