Being written in October of 2006, this article focuses on a minimum wage of .15 per hour. This reader believes, however, that even with the recent minimum wage increase the article remains valid as the current gross boost for a 40 hour work week amounts to less than 0 monthly. The 2008 increase will up the midpoint minimum wage workers earnings a dinky more than 0.00 monthly, and 2009 will raise their monthly earnings just over 0. When the increases are totally effective, the minimum wage laborer will earn about 00 more per year, for a consistent 40 hour work week, than they do now.
Although many see raising the minimum wage as a first step to instituting living wage laws, this article shows the country to be divided on the best ways to tackle poverty. The Los Angeles area has benefited greatly from instituting a living wage ordinance. Job loss was minimal, benefits were solid for workers covered, there was no decline in the number of firms bidding for governmental ageement and the city was not impacted in its potential to withhold or attract employers willing to pay decent wages.
Trickle Up Poverty
On the other hand, Santa Fe, Nm found that due to its living wage ordinance, the city has experienced a 16% increase in the unemployment rate and a loss of 540 jobs, affecting the sell and hospitality-leisure sectors of the work force the most severely.
According to Dr. David McPherson, Florida State University economist, when Arizona increased its minimum wage , a correlation became evident between job loss among the most vulnerable employees, and wealthy teens displacing unskilled employees.
As movements are appearing all over the country at city halls and on college campuses in favor of wage increases, critics are making a strong conference for keeping the status quo raising concerns about increased labor costs negatively impacting the economy, employers spirited their businesses to areas of the country that do not embrace living wage laws, or the possibility that if labor costs too much employers will stop hiring or come to be unprofitable. They exertion to discontinue that the poor will not advantage from these increases, but rather will loose their jobs.
Although the title of this article made it look like we would be exploring the pros and cons of Living Wage considerations vs Minimum Wage considerations, it unmistakably just explored wage increases. The greedy do not want increases of any kind, the poor and the citizen who unmistakably care about the poor do want increases, but nobody wants them at the charge of a strong cheaper or good job market.
Given the assorted experiences with living wage increases cited in the report, it appears that many statistics and demographics need to be considered as each area of the country prepares to tackle this prominent issue.
A living wage is considered to be a rate of pay for a 40 hour week that allows the wage earner to afford housing, food, utilities, transport, health care and a definite number of recreation. The Economic course build defines living wage as the wage a full-time laborer would need to earn to withhold a house above the federal poverty line, fluctuating from 100% to 130% of the poverty measurement. Example: The wage rates specified by living wage ordinances range from a low of .25 in Milwaukee to a high of in Santa Cruz.
What is the New Minimum Wage - Living Wage Vs Minimum Wage
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