Minimum wage is the legal minimum a person can be paid at their job. Different states have different minimum wage rates, depending on the cost of living and other expenses. Lots of people argue that the rate should be changed due to the rising poverty rates, unemployment rates, small businesses closing, and the cost of goods. Some smaller businesses cannot afford to pay employees more than a certain amount, and this leads to hiring less workers, or to the business closing. On the other hand, a higher minimum wage could encourage more people to work because they will be getting paid more.
In Iowa, minimum wage is currently $7.25, but it hasnt always been this way. In 1938, the Fair Labor Standards Act introduced minimum wage at a rate of $0.25 an hour, the equivalence to $5.99 in 2024. This rate was changed in 1950 to $0.75. Purchasing power fluctuated lots during this time, which is why the rate was raised. Minimum wage was finally raised to $1 by 1956, and it continued to rise. Finally, in 2009, $7.25 was set as the rate, and it has not changed yet, making this the longest period of time to maintain a minimum wage rate in history. Although the rate is much higher now than it was, it has not kept up with inflation rates over time. Studies have showed that the $7.25 minimum wage rate from 2009 has not kept up with inflation. In fact, it declined 17% from 2009 to 2019.
Some people think that the minimum wage should be raised. They think higher earnings would lead to a higher standard of living for minimum wage workers. The people who cannot get higher "tiered" jobs should be able to support themselves off of the rate. They also think that more people would be motivated to work because they would be making enough money to live, and the poverty rate would decrease. Another reason people think it should be raised is becasue it would boost our economy. We would have more money flow due to higher spending because more people are making money.
Although raising minimum wage sounds like an amazing idea, there would also be some cons. For example, inflation is already rising at a high rate, but if minimum wage was higher, inflation would skyrocket. Like mentioned, the economy would be fueled so much that prices would start to rise even more. With higher prices and people getting paid more, the overall cost of living would rise as well. You would not be able to buy things as easily. People also think that if the rate was higher, smaller businesses would not be able to pay as many employees, leading to limited workers. If a business is no longer able to employ people, they have to go out of business.
There are lots of variables that go into the changing of minimum wage, but people have lots of different opinions. There are lots of reasons the rate should be changed, and lots of reasons it should stay the same. I personally think it should be raised, but not by a lot. I think that the downsides listed are very possible, and I could see those things happening. On the other hand, these issues will have to happen eventually, because inflation is always rising. We don't have the same proces as they did 50 years ago, so why should we have the smae ones for the next 50 years? I think that we and our economy could benefit greatly from the minimum wage rising.
https://www.dol.gov/agencies/whd/minimum-wage/history/chart
https://www.dol.gov/agencies/whd/minimum-wage/state#:~:text=Iowa-,Basic%20Minimum%20Rate%20(per%20hour)%3A%20%247.25,set%20below%20the%20federal%20rate.
Do you think the minimum wage should be changed?
Why or why not?
What do you think the rate should be now?
Replies
I agree, I think it should stay the same, otherwise everything else will become more expensive.
I think that the minimum wage has come a long way, but I mean I think it could be raised a little bit. If it wasnt raised it's not that big of a deal though. I would honestly just keep the minimum wadge the same. If that went up then so would prices and then everything would be so expensive.
I agree, I think raising it would make other prices go up and things would be much more expensive.
I think that it could be both good and bad if minimum wage changes. I think the good is that people will make more money, but the bad is inflation. In the end, I think that minimum wage should just stay the same even though it isn't convenient for parents who have to provide for their house.
I agree, I think the rate is good where it is becasue if it rises, so will the prices of everything else.
I think that minimum wage should stay the same. If we raise minimum wages than all the prices will go up causing everyone to spend more money. If you don't like how much you getting payed I think you should switch jobs.
I agree, I think that you can help yourself depending on your situation and how you feel about your job.
I think that minimum wage should stay the way that it is. If minimum wage rises, prices will then rise, therefore leading to no point in raising minimum wage. When companies have to pay their employees more money, they have to raise their prices, which leads to people having to spend more money when they buy things.
I agree, I think that by raising minimum wage, inflation will get higher, and we will be in the same position.
I think that minimum wage should not be changed. I get the arguement that inflation has gone up, but if we increase minimum it will just increase inflation as well. I think the rate should stay at $7.25, if you aren't happy making minimum wage, get a different job.
-
1
-
2
-
3
-
4
-
5
of 5 Next