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 think it should a little bit at least. the wage should be, if it goes up, around 8 or 10 dallars in the united states. If it does go up people would be able to afford more basic needs and more people wouldnt stuggle as much anymore also.
I agree, if it goes up, people will be able to afford much more and be able to live more comfortably.
yes because inflation is rising and the prices are. I think that if the wage goes up then I think that it should be like 10$ because then you might have enough money to afford stuff with these prices going up.
I agree, if the wage goes up, people working minimum wage jobs will be able to afford more.
I think minimum wage should be raised at least a little bit. I think as inflation is starting to occur more often it would make sense to raise it. I think it should be raised to at least $9 or $9.25 in the united states.
I agree, I think it should be raised, but not by very much. I think $9.25 would be good because it would keep up better with inflation.
I think it depends on if inflation continues or not. I think that if the cost of living goes up along with inflation on goods and services, raising minimum wage could be reasonable. I think that maybe even bumping it up a quarter could be beneficial for some.
I think inflation will keep rising, and so will the cost of living, so I think raising it would be a good idea too.
I think that the minimum wage could be raised a little however I know that most jobs pay more then minimum wage already. I think munimum wage could be raised to nine dollors because I know a lot of small buisneses that pay over nine dollars already.
I agree, it should be raised. I also agree that most jobs do pay more than minimum wage, so it isn't very much of an issue for most people.
-
1
-
2
-
3
-
4
-
5
of 5 Next