The Federal minimum wage has been changed a total of 22 times since it became existent in 1938.
Recently, a number of states have decided to once again raise their minimum wage. This rate increases based on what it takes to provide somebody with a sustainable life.
Ultimately, increasing minimum wage over a period of time is meant to help create a more better life. With the new year just beginning, many states have decided to increase it.
One benefit we see is a potentially growing economy. The increasing wage is also a way to decrease poverty, thus reducing government welfare spending. Productivity is also directly correlated with this; therefore the higher the wage, the more likely somebody is to be productive.
It also potentially reduces crime rates, federal deficits, and premature deaths.
While there are many positives to this, one of the downsides is forcing employers to reduce hiring and lay off workers. Being informed on the background of minimum wage helps you judge whether or not you will benefit from your state raising it or not.
Here is a list of all the locations that have raised their minimum wage this year:
Alaska, Arizona, New Mexico, California, Colorado, Florida, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, New Jersey, New York, Ohio, Rhode Island, Washington, and Vermont.
The amount of minimum wage varies throughout different cities within the state. For example, in some locations in California, the wage is $10.50, but in others it could be as high as $15. The number of workers within a company also impacts the amount of money one might receive. It is projected that in the next 4 years, 17% of Americans will live in a location with a minimum wage of $15.
While some view this in a positive light, others believe it has mostly negative effects.
Regardless of where you stand on the issue, you should be informed on the changes within your state. Having an idea of the way taxes work, and what the standard of living is like in the location you inhabit is absolutely necessary.
Minimum wage has been raised in a number of locations within the last few weeks, so people working these jobs are likely excited about the changes.