Why do we need Minimum wage? Fare minimum wage.
President Franklin D. Roosevelt signed Fair Labor Standards Act in 1938 with a goal to ensure a "minimum standard of living necessary for health, efficiency and general well-being.” A major concern with minimum wage policy is its negative effect on employment rate. Seventy years of observation of minimum wage rates have given us enough empirical data to see that there is no such effect. In 1950, when President Truman raised minimum wage by 87% or, in 1967, when Congress raised it by 27% no negative effect on unemployment rate was recorded. Recent studies from 2010 by the head of Council of Economic Advisers, Alan Krueger, showed that raising the minimum wage doesn't destroy minimum wage jobs; it in fact helps fill job vacancies.
Minimum wage helps many U.S. families to have decent standard living income. Full time workers who are still standing below poverty rate deserve attention from government and some protection. Many times employers in the low paid segments of the labor markets are enjoying market power. They are able to push the wages of their staff below the equilibrium point. If businesses have more power to abuse labor market, minimum wage will ensure our workers have standard income to support themselves.
If we take into consideration experience of European countries, minimum wage is not always stated by government, but more of a required national standard set labor unions. Minimum wage has been a long tradition to protect income at the bottom of a labor market. Decent standard income makes huge improvements in the difficult existence of the working poor, perhaps allowing them to exit the debt treadmill and stand a better chance of eventually rising into a revitalized middle-class. We are not talking about some luxurious life; minimum wage would provide full time working persons with decent living which is not exactly a "good life".
Raising low wage worker income raises economy as a whole. The...