Minimum Wage Policies in the United States

Why the USA Government Should Not Change the Minimum Wage
Author's Name
Institutional Affiliation
Course Code and Name
Professor's Name
Date
Why the USA Government Should Not Change the Minimum Wage
The minimum wage entails the least remuneration that the United States of America's (USA) government requires employers to pay their workers for the work done within a specific period. The amount cannot be decreased through an individual's contract or a collective agreement. The primary purpose of the minimum wage is to ensure that employees are not poorly compensated by their employers. The federal government plays a significant role in setting the minimum wage since workers enjoy the fruits of their labor, and it promotes equality. For instance, the minimum wage does not depend on employees' gender, but anyone must be paid an amount that equates to it or above it. The best thing about the minimum wage is that it only caps the lowest amount of money that an employee can get, but it does not restrict employers from paying more. In reality, states have distinctive minimum wages, which are determined by the living standard in each region. The primary aim of this paper is to show why the USA's government should not change the minimum wage.
The implementation of the federal minimum wage took place in 1938 after the Fair Labor Standards Act (FLSA) was enacted. In particular, it was the first time that the USA government intervened to set the standard pay for all workers. During this time, the minimum wage was set at 40 cents per hour, an amount that was reduced to 25 centers per hour so that it gain support from the representatives of the southern states. Since then, the minimum wage has risen about 22 times to what it is today, $7.25 per hour (Smith, 2021). From the 1940s to the 1960s, the minimum wage was increased to keep pace with inflation and the growing productivity, meaning the services and goods produced hourly. As the country became more economically stable, the pay that workers received ought to have increased. However, without the government's intervention, some employers were not going to increase wages. Since 1968, the economic growth has been gradual, and it was from that time that raising the minimum wage has never been a priority.
The government should not raise the minimum wage since it would lead to job losses and a high rate of unemployment. When the federal minimum wage was first established in 1938, it resulted in massive job losses. The majority of southerners were unable to keep up with the minimum wage of 40 cents per hour, which was why it was dropped to 25 cents per hour. What happened in 1938 is no different from what would occur today if the government tried to increase the minimum wage. Based on a 2010 report by Richard Burkhauser and Joseph Sabia, approximately 1.3 million jobs could be lost if the government raised the minimum wage to $9.50 per hour (cato.org, n.d.). On that note, the primary focus should not be on increasing the federal minimum wage but instead on emphasizing the consequences of raising it. A high rate of unemployment is a significant economic issue that might lead to increased crime rates and engagement in illegal activities. As a result, the government should not raise...