<ul><li>Currently, there are 30 million Americans living on $5.15 an hour, the federal minimum wage. In the legal sense, t...
 
 
<ul><li>Good </li></ul><ul><li>The better workers are employed.   </li></ul><ul><li>The minimum wage reduces poverty. </li...
<ul><li>Microeconomic analyses tells us that federally mandated minimum wage laws will lead to increased unemployment </li...
<ul><li>The EITC is a “refundable federal income tax credit for low-income working individuals and families” (Internal Rev...
 
<ul><li>Bernstein, Jared and Elaine Maag. “Tax Credits or Minimum Wages? We Need Both.”  </li></ul><ul><li>Economic Policy...
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Minimum Wage Powerpoint

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Minimum Wage Powerpoint

  1. 2. <ul><li>Currently, there are 30 million Americans living on $5.15 an hour, the federal minimum wage. In the legal sense, this bluntly refers to “the wage below which it is illegal to employ someone.” </li></ul><ul><li>Full-time workers who earn $5.15 an hour, 40 hours a week, 52 weeks earn an income below the poverty threshold. </li></ul><ul><li>The minimum wage debate recently arose because the United States Congress had not increased it since September 1997. </li></ul><ul><li>Democrats currently want a $1.50 increase in the minimum wage over 18 months. </li></ul>
  2. 5. <ul><li>Good </li></ul><ul><li>The better workers are employed. </li></ul><ul><li>The minimum wage reduces poverty. </li></ul><ul><li>An increase would help working families at the bottom income level. </li></ul><ul><li>Some people who work for minimum wage never see an increase. </li></ul><ul><li>There has been little or no effect on increasing unemployment when the minimum wage rises. </li></ul><ul><li>Bad </li></ul><ul><li>Most minimum wage earners are teenagers or are providing supplemental income to a primary wage earner </li></ul><ul><li>Decreases amount of entry level positions </li></ul><ul><li>Makes it hard for small businesses to survive </li></ul><ul><li>Might result in a parallel increase in the prices of goods that are made by companies because of the increase in production costs, thus contributing to inflation in the long run. </li></ul>
  3. 6. <ul><li>Microeconomic analyses tells us that federally mandated minimum wage laws will lead to increased unemployment </li></ul><ul><li>Businesses must cut workers or hours </li></ul><ul><li>Reduce benefits such as health care, flexibility of hours, or vacation </li></ul><ul><li>Elasticity of Labor Demand </li></ul><ul><li>Excess Labor </li></ul>S Wo Wm L1 L0 L2 D
  4. 7. <ul><li>The EITC is a “refundable federal income tax credit for low-income working individuals and families” (Internal Revenue Service 3). </li></ul><ul><li>A 10 percent increase in the maximum EITC refundable credit reduces poverty rates by 7 percent among full- time employed single moms (Henry Paulson, Treasury Department Briefing). </li></ul><ul><li>The EITC affects many of the same actors that increasing the minimum wage does, but it impacts the U.S. government to a much greater degree. </li></ul><ul><li>Increasing EITC programs reduce government revenue that could be used to help working class families in the form of social welfare programs. </li></ul><ul><li>The EITC is a more efficient policy than the minimum wage at targeting low-income households because it is based on family income and not wage levels of a single, possibly supplementary worker. </li></ul>
  5. 9. <ul><li>Bernstein, Jared and Elaine Maag. “Tax Credits or Minimum Wages? We Need Both.” </li></ul><ul><li>Economic Policy Institute. 15 Mar. 2007. 7 April 2007 http://www.epi.org/content.cfm/webfeatures_viewpoints_minwg_eic </li></ul><ul><li>Bernstein, Jared and Isaac Shapiro. “Nine Years of Neglect: Federal Minimum Wage Remains </li></ul><ul><li>Unchanged for Ninth Straight Year, Falls to Lowest Level in More than Half a Century.” Economic Policy Institute. 31 Aug. 2006. 23 Feb. 2007 <http://www.epinet.org/issuebriefs/227/ib227.pdf>. </li></ul><ul><li>“ Characteristics of Minimum Wage Workers: 2006” 2 Mar. 2007. U.S. Department of Labor: </li></ul><ul><li>Bureau of Labor Statistics.15. Apr. 2007. http://www.bls.gov/cps/minwage2006.htm </li></ul><ul><li>“ Earned Income Tax Credit (EITC) Questions and Answers.” Internal Revenue Service: United </li></ul><ul><li>States Department of the Treasury <http://www.irs.gov/individuals/article/ 0,,id=96466,00.html#QA1>. </li></ul><ul><li>Ettlinger, Michael. “Securing the Wage Floor: Indexing Would Maintain the Minimum Wage's </li></ul><ul><li>Value and Provide Predictability to Employers”. EPI Briefing Paper #177. 12 Oct. 2006. Economic Policy Institute. Feb. 2007 < http://www.epi.org/content.cfm/bp177 > </li></ul><ul><li>Fox, Liana. “Minimum Wage Increasingly Lags Poverty Line.” Economic Policy Institute. 31 </li></ul><ul><li>Jan. 2007. 23 Feb. 2007 <http://www.epinet.org/content.cfm?id=2611>. </li></ul><ul><li>Furman, Jason and Sharon Parrott. “A $7.25 Minimum Wage Would Be a Useful Step in </li></ul><ul><li>Helping Working Families Escape Poverty.” Center on Budget and Policy Priorities. 5 Jan. 2007. 5 April 2007 < http://www.cbpp.org/1-5-07mw.htm> </li></ul><ul><li>Goodman, John C. and Richard B. McKenzie. “Saving Health Insurance from the Minimum Wage.” National Center for Policy Analysis. 28 July 2006. 7 April 2007 <http://www.ncpa.org/pub/ba/ba565/> </li></ul><ul><li>Gorman, Linda. “Minimum Wages.” The Library of Economics and Liberty. 2002. 7 April 2007 < http://www.econlib.org/library/ENC/MinimumWages.html > </li></ul><ul><li>&quot;Health Insurance Coverage: 2005.&quot; U.S. Census Bureau . 19 Apr. 2007 <http://www.census.gov/hhes/www/hlthins/hlthin05/hlthtables05.html> </li></ul><ul><li>&quot;It’s Easier Than Ever to Find Out If You Qualify for EITC.&quot; Internal Revenue Service . 19 Apr. 2007 <http://www.irs.gov/individuals/article/0,,id=96406,00.html>. </li></ul><ul><li>Lemos, Sara. “Minimum Wage Effects on Wages, Employment and Prices: Implications for Poverty Alleviation in Brazil.” Department of Economics University of Leicester. July 2005. 6 April 2007 < http://ideas.repec.org/p/lec/leecon/05-15.html> </li></ul><ul><li>“ Minimum Wage: Frequently Asked Questions.” Apr. 2007. Economic Policy Institute. </li></ul><ul><li>15 Mar. 2007. </li></ul><ul><li><http://www.epinet.org/content.cfm/issueguides_minwage_minwagefaq>  </li></ul>

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