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 there are benefits and negatives or the minimum wage being changed. I think it could help our economy, but at the same time, cause the same amount of problems. I think the rate should fit our economy and match inflation as it goes up.
I think that would be a better idea, having the minimum wage fit inflation and with our economy.
i think that the minimum wage should be raised but i dont think that it should go up alot. I think that if they raise it to about 8.50 it should be right because i dont think that 7.25 in enough for anybody to get by in life. I am not sure what the state rate should be.
I totally think it should be changed there is no reason there is so much poverty everyone who can work should. I think that if we do this then there would be more inflation. So I think it could go both ways I personally would like to earn more but that would bring consequences.
I agree, I think if people are able to work they should, and if the wage was higher, more people would want to work.
I think the minimum range should just stay as is because if we raise it, then inflation would also have to be raised as well but if it was lowered then inflation would be also lowered but it should just stay as it is.
I agree, if it stays the same, everything else will stay the same too. I think raising it would raise too many prices.
I do think that there are very many reasons why the minimum wage should or shouldn't be changed and that there would be both good impacts and bad impacts. I think that it could help families, especially children with bills and costly items. I think the rate now is okay as it is.
I agree, there are lots of good reasons and bad reasons, but I think overall it would help.
I think that there are many pros and cons to changing the minimum wage. A pro is that it could help many families in need and imprve their life. A con could be that it would make prices of objects much higher. I think it should stay the same as it is now.
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