Final, final, Final - Minimum Wage Peter Arredondo JoAnn...

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Minimum Wage Peter Arredondo Kent Brewer JoAnn Buckson Dianne Whitney Sadye Wood Gen 200 March 24, 2010 Don Braunstein
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Economists believe that the true minimum wage should be zero. Since 1938 there has been a minimum wage in effect. The first rate was $0.20 an hour. Over the past 72 years federal government has raised it to the current rate of $7.25 an hour. Even though minimum wage is adjusted for the cost of living, it is bad for the economy because it places a high labor costs on business owners. President Franklin Roosevelt established a minimum wage to eliminate “sweatshops” exploiting children and women. Individual states are allowed to set their own minimum amount higher than the federal government. The last rate increase was in 2009. Arizona has elected to establish their wage to match the federal government’s rate. For a 40-hour week, it is $15,080.00 annual income, which is above the poverty level of $10,080.00 for a family of two. “Arizona has lost over 7.8 percent of its jobs over the last year according to the US Census Bureau.” (Inside Tucson Business, 2009) This is a greater loss than Detroit, Michigan. Michigan has long been associated with high unemployment. The loss of these jobs in Detroit as well as Arizona is directly linked to the minimum wage. The economy has declined over 6% last year and businesses have not been allowed to adjust salaries. Consumers are paying less for products and businesses’ salaries have not been allowed to adjust. According to Mark Wilson of the Heritage Foundation, “Abolishing the minimum wage would allow governors and state legislators to determine the minimums of their states if they believe such action is helpful. This would allow proponents to set minimum wages according to local labor market conditions and living costs while taking into account how business and employment condition would be affected. “(Wilson, Mark."Increasing the Minimum Wage Is Counterproductive”, 1999)
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Many economists including John Lonski, chief economist for Moody’s Investors and Tom Sewell, senior fellow of the Hoover Institution at Stanford University , believe the true minimum wage should be $0.00 . If a worker and a business owner can agree on a wage and duties for the work preformed it would encourage free enterprise, reduce unemployment and
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Final, final, Final - Minimum Wage Peter Arredondo JoAnn...

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