final paper

Minimum wage is one of the main issues that have been highly debated in the US as well as globally as different arguments are raised for and against it. However, it is important to note that the workers do not complain and it is the owners of capital who deem the move as capping on their gains. As Karl Marx pointed, the bourgeoisie suffer as the owners of capital cap on their rights in the society. The society needs to assess the historical implications of minimum wage and compound its importance in the workplace as the cost of living is increasing. In the US, the last time that the Federal government set minimum wage was 2009 and although some states have increased the minimum wage there are still regions that have not changed. The Federal minimum wage needs to be reviewed and increased to ensure that people can support their families which would help in expanding the economy and improving the structural attributes of the American society. This paper assesses the importance of minimum wage in the US and how this can help the workers, owners of capital as well as the government.

The Fair Labor Standards Act in Puerto Rico from 1938-1941 and how it changed the scope of minimum wage in the US is a fundamental historical attribute that needs to be highlighted (Macpherson, 2017). America has made major strides on its minimum wage structure but more needs to be done. The Democrats have pointed this issue noting that there needs to be a change in the wage structure to support the American workers. The need for reviewing the minimum wage structure needs to be addressed as case sensitive. The numbers of companies that have set up are increasing and with an American economy that needs to expand it are essential to create proper tools to facilitate economic growth in the country (Romich and Hill, 2018). There needs to be a new review that aligns with the present conditions in the country and Congress needs to facilitate the new structural precepts in the country. The increasing level of inequality in the country is staggering due to the poor wages that a large number of Americans receive. The minimum wage needs to be set on the best models towards empowering the people. The American people need to have enough resources to support their families and a review of the wages is critical to this change.

There are more than 29 states that have changed the minimum wage structure since 2009 (Fabo and Belli, 2017). The minimum wage laws should be adopted across all states as they have been working in states where the minimum wage is higher than that of the federal capping set. It proves that the changes are neither detrimental to the government nor to the owners of businesses. The owners of businesses highlight the problems that are caused by minimum wage but productivity and reduction in labor turnover are among the main attributes that change with increasing the minimum wage (van Doren, 2017). Workers are motivated to work as they gain heavily and are satisfied. This mainly applies to the blue collar jobs where the wages do not match the work (Romich and Hill, 2018). There have been arguments that a change in the approach would lead to companies employing non-American citizens who would be cheaper. These arguments only compound the importance of increasing the minimum wage to create a level playing field for everyone.

America is a capitalist nation where the owners of capital have power over the workers. This is one of the principles that have made America one of first world countries across the world. The minimum wage does not take away a capitalist structure but creates a perfect economy where everyone enjoys the wide American economy (Trant et al, 2018). It ensures that everyone gets a share of the part that they contribute to the economy. A higher minimum wage would lead to higher Medicaid, public housing, nutrition assistance and income support programs by the government (Trant et al, 2018). The people’s income would be sufficient to support their programs and create a proactive model that matches the specific tools and processes indicated. The current minimum wage levels in the country do not match the historical levels when one factors in the economic conditions and cost of living in the country (Romich and Hill, 2018). It is these attributes that should be critically examined by the government when creating a better Federal Government minimum wage in the country. The diversification and difference in the jobs in the country means that there are a lot of people who do not get the right wages. An examination of the farmers and environmental factors indicate a critical attribute that needs to be measured and underlined (Trant et al, 2018). The social elements that are founded inculcate an individual process that matches the significant processes needed in improving the livelihoods of the people accordingly.

In the UK, there was a court ruling that supported the rights of Uber drivers to get the minimum wage. This indicated the importance of creating a structured model especially in the precarious forms of work. The UK government changed their minimum wage in 2017 which had been in used since 1999 (Fabo and Belli, 2017). It indicates the trends that other developed economies are taking to support their citizens. The Congress does not have a basis for failing to pass a bill on minimum wage since it compounds the interests of the people. The increase is not expeditious but a small increase that will have a lasting impact on the American lives. It is therefore, imperative to create strong models that are matched and significantly underlined through the critical methods developed. As a country creating a good structure that supports the people is beneficial to everyone and these attributes need to be developed. As the American people contemplate on the best cause of action, it is imperative that the interests of the workers are addressed (Fabo and Belli, 2017). There are however, problems that are indicated such as imperfect targeting, heterogeneous labor market effects and interactions with income support programs. Although there are problems, engaging in a liberal conversation that allows American to gain from their role in the society is essential.

In conclusion, the debate on minimum wage needs to continue but an increase in the wage levels should be inevitable. The American people need a minimum wage bill passed by Congress to support the increase in their wages. It is imperative to create a proper model that matches the significant changes that the country is undergoing need to be supported by better deals for Americans. The country has a strong potent towards improving the livelihoods of Americans thereby creating a specific approach that should be matched by the social precepts indicated.

Solution to Minimum Wage Dilemma

American society is and has always been a hardworking lot. The cost of living increase continues to increase disproportionately to income, which makes the working class to remain poor. The balance between the living cost and the income worsen forcing most people to work in two or three shifts. The American Government has a responsibility to ensure that the labor is compensated enough to remain motivated. To ensure proper remuneration of the employees the government controls the minimum wage. However, there is a crisis when the same government spends ten years without reviewing the minimum wage. Although some states have to keep on revising the minimum wage, some have never done so since the last time it was done in Congress in 2009 (Madowitz & Duke,2016). Increasing the minimum wage have not been a solution to the increase in poverty levels among the low-income earners.

To approach the problem at hand, I would propose the use of a different measure that has been in existence since 1975, but people have ignored it over the years. The solution is to increase the Earned Income Tax Credit. EITC is a federal anti-poverty tax credit that is designed to supplement the earnings of a low-income employee by cutting or eliminating the taxes. The Internal Revenue services were mandated with the responsibility of administering EITC (Wirtz, 2003). The EITC is a refundable tax credit for low income working for persons and families. The tax credit legislation was initially approved by Congress to try and reduce the social security taxes burden to provide working incentives to these people.

The politicians and persons who feel that they are eligible for the EITC are the ones who are supposed to follow up. Politicians such as senators are respected people in the united states and are critical in policy making thus they should educate people on how to file a tax return if they meet the qualification. Low-income earners with children should take advantage of EITC since it will help live better lives compared to when a minimum wage I increased and then the tax level increases. It is critical to note that EITC has no impact on particular welfare benefits. The tax is not employed in determining the eligibility for Medicaid, food stamps, Temporary Assistance for Needy families, low-income housing or supplement security income. Low-income earners with children are favored by this refundable tax if they file for it (Internal Revenue Service, 2006).

The problem can be approached from a different perspective of providing the working lot with a basic salary (Butaru, 2017). Unlike increasing the minimum wage, basic pay is an assurance to a working individual that at the end of the month they will have food on the table and settle the bills. It is an assurance to a working individual that there is a safety net protecting them which motivate them to work more. Studies carried between 2007 and 2010 show that an increase in the minimum wage will lead to job losses. People, however, work harder when they understand that there is a pay for the particular given period.

It is the responsibility of the whole society to work on this plan. It would involve an individual( employee), company(employer) and the government (policy makers –congress). This solution would include all the players in the industry to come up with a policy that would be suitable to all. The citizens should give their views and employees too and then the Congress should be allowed to develop a policy to safeguard the players from being exploited. A basic salary would mean that each person would receive dues from the company at the end of every month.

The two proposals are the best solution to the challenge of minimum wage which has failed to eliminate poverty among the low-income earners in the united states. The first solution on EITC will cost require time to educate time on the benefits, and qualifications. However, no resources are needed since it is a policy that was enacted to ensure the low-income earners live a better life. The second solution is costly. It needs a three month time for industry players to discuss the most probable basic salary that would accommodate the working class. The Congress would take an extra one week to discuss the bill before making a policy or declining the suggestions. It would cost lobbyists a millions of Dollars to campaign for the bill. It would require convincing people and lawmakers to come to a collective agreement.

Increase in the minimum wage has been done over and over the years but never seem to eliminate the suffering of the low-income earners. Increasing the same wage will not solve the problem, and in a years time, people will still be crying for an increase in the wages. To eliminate the problem, I believe that low-income earners should file for EITC which if qualifies will make sure that they get a refund of the tax. Also, the government will not use this to determine the effect of any welfare benefits. A basic salary will ensure that low-income earners are covered and that they are able to provide for their families.

Reaching a regular basic salary is a bone of contention. The main question is how to come up with a formula that will determine a basic salary for the people in different working places and levels. The same way that employees set different salaries for the workers, they should use it to set the basic wage for each employee. A policy should then be in place to ensure that this obligation is fulfilled and if not a credible reason is provided to the reason as to why it was not honored.

Administration after administration has faced the push for an increased minimum wage as a result of improved living standards. The low-income earners should learn of the EITC and be able to take advantage of it. The Earned Income Tax Credit though formulated for adults with children it should be extended for childless adults to boost take-home pay to seal the hole in the social safety without hurting jobs. The plan has been there for decades, yet most people do not know about it while some ignore it while they would file for it and be able to make a better life. An increase in minimum wage has failed to eliminate poverty, and it is not going to. The reason is as wage increases; new tax brackets are realized making the poor vulnerable to higher taxes. While many people see potential in increased wages, I feel it is the time to change the tactic that we use in approaching this economic problem to solve social problems.

References

Fabo, B., & Belli, S. S. (2017). (Un) beliveable wages? An analysis of minimum wage policies in Europe from a living wage perspective. IZA Journal of Labor Policy, 6(1), 4.

Macpherson, A. S. (2017). Birth of the US Colonial Minimum Wage: The Struggle over the Fair Labor Standards Act in Puerto Rico, 1938–1941. The Journal of American History, 104(3), 656-680.

Romich, J., & Hill, H. D. (2018). Coupling a federal minimum wage hike with public investments to make work pay and reduce poverty. The Russell Sage Foundation Journal of the Social Sciences. RSF.

Van Doren, Peter. (2017). Minimum Wage.(Working Papers: A SUMMARY OF RECENT PAPERS THAT MAY BE OF INTEREST TO REGULATION'S READERS.)(Brief article)

Trant, L., Brekken, C. A., Lev, L., & Gwin, L. (2018). Implications of the 2016 Oregon Minimum Wage Increase for Direct Market Farmers, Farmworkers, and Communities. Sustainability, 10(2), 370.

Butaru, L. T. (2017). TOWARDS A UNIVERSAL BASIC INCOME. AN EVOLUTIONARY APPROACH. Studia Universitatis Babes-Bolyai, Europaea, 62(3).