Fair Minimum Wage Act of 2007

Free «Fair Minimum Wage Act of 2007» Essay Sample

President Roosevelt did away with the Supreme Court ruling that enabled hirers to set their own wage limit by helping pass The Fair Labour Standards Act of 1938. It provided for a 25-cent-per-hour wage as the minimum pay and 44-hours of work per week as the most hours an employee can take. The act also banned child labour (Time magazine, U.S).

As of today, the minimum wage provided for is $7.25 for all work performed after july 24th 2009 (Fair Minimum Wage Act of 2007).

There have been critics, however, over the minimum wage policy; the most recent one being the July 2009 review. They argue that jobs are destroyed because of the policy. Professor Neumark David (University of California) alleges that it might cost close to 300,000 jobs currently taken by young adults because it makes their employment too expensive especially in enterprises facing losses. Economists have a contrary opinion. With the outcome of the 1992 wage hike in New Jersey, the employment rose in the fast food restaurants as opposed to Pennsylvania where there was no pay hike. Propounds further argue that instead of killing jobs, the minimum wage policy will encourage productivity and further boost the consumer purchase power.

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The boost in the minimum wage would see to it that the needs of the country are protected. Though the minimum wage has always fallen from 1973 to 2007 by up to 22%, the extra 70 cents provided for will be enough for now as opposed to the proposal of $10 per hour.

The federal government in a bid to regulate poverty has established a program known as poverty thresholds, an original version of the federal poverty measure (HHS Poverty Guidelines, 2012).

Such policies by the government will help track the poverty-stricken population and try to establish the best way out for their salvage. It also helps with the regulation of the minimum wage per worker thus creating a reasonable working environment for the workers without any exploitation on their part.


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