Changes

Most countries have a minimum wage. The minimum wage in the United states was most recently raised to $7.25/hr, on July 24, 2009. At this rate, a person working a 40-hour week for 52 weeks a year at minimum wage earns $15,080.00 for the year.  The minimum wage is higher in many states, such as [[New Jersey]], due to state minimum wage laws.

Most countries have a minimum wage. The minimum wage in the United states was most recently raised to $7.25/hr, on July 24, 2009. At this rate, a person working a 40-hour week for 52 weeks a year at minimum wage earns $15,080.00 for the year.  The minimum wage is higher in many states, such as [[New Jersey]], due to state minimum wage laws.

Increases in the minimum wage cause students to drop out of school in order to join the workforce, rather than continue their education for higher paying jobs in their future.<ref>http://www.house.gov/jec/cost-gov/regs/minimum/against/against.htm</ref>

Increases in the minimum wage cause students to drop out of school in order to join the workforce, rather than continue their education for higher paying jobs in their future.<ref>http://www.house.gov/jec/cost-gov/regs/minimum/against/against.htm</ref> Minimum wages also distort the equlilibrium for non-wage benefits, potentially causing employers to provide less training, uniforms, opportunity for promotion, and pleasant working conditions.

Like all market forces, wages are payed based on interactions between the supply curve (how much workers are willing to supply a particular type of labor at a certain wage) and a demand curve (how many workers of a particular type a firm is willing to hire at a particular wage). Wages are typically set at [[equilibrium]]. If a minimum wage is imposed that is above this equilibrium, it leads to structural [[unemployment]]. If a minimum wage is set below the equilibrium point, it is unlikely to affect that job's wage unless a complement or substitute job's equilibrium wage is less than the minimum wage (causing ripple effects throughout the related markets).

Like all market forces, wages are payed based on interactions between the supply curve (how much workers are willing to supply a particular type of labor at a certain wage) and a demand curve (how many workers of a particular type a firm is willing to hire at a particular wage). Wages are typically set at [[equilibrium]]. If a minimum wage is imposed that is above this equilibrium, it leads to structural [[unemployment]]. If a minimum wage is set below the equilibrium point, it is unlikely to affect that job's wage unless a complement or substitute job's equilibrium wage is less than the minimum wage (causing ripple effects throughout the related markets).

==Political views==

==Political views==

The left wing in American politics tends to present a minimum wage as benefiting the lower class by helping to lift poor people out of poverty. Conservatives and libertarians generally counter this argument with statistics showing that every increase in the minimum wage has increased unemployment, especially among black inner city youth; see [[entry-level job]]s. It also obliges companies to outsource many jobs to China and the Third World.

The left wing in American politics tends to present a minimum wage as benefiting the lower class by helping to lift poor people out of poverty. Conservatives and libertarians generally counter this argument with statistics showing that every increase in the minimum wage has increased unemployment, especially among black inner city youth; see [[entry-level job]]s. It also obliges companies to outsource many jobs to China and the Third World.

Fiscal conservatives tend to oppose increases in the minimum wage because in a [[free market]], the price of labor, like any other commodity, should be set by negotiations between the buyer and seller without undue interference from the state.  Conservatives oppose the distortion caused by a minimum wage in encouraging boys to drop out of school, or otherwise decline to go onto college, in order to make artificially inflated and short-lived income at an elevated minimum wage.

Fiscal conservatives tend to oppose increases in the minimum wage because in a [[free market]], the price of labor, like any other commodity, should be set by negotiations between the buyer and seller without undue interference from the state.  Conservatives oppose the distortion caused by a minimum wage in encouraging boys to drop out of school, or otherwise decline to go onto college, in order to make artificially inflated and short-lived income at an elevated minimum wage. The fact that some in the lowest income bracket will gain slightly from minimum wages (by having their wages raised) while others will lose significantly (from losing their jobs) means that minimum wages can be seen as increasing inequality.

[[Socialism|Socialists]], and many economic liberals, disagree with this view of labor as a commodity because they believe it dehumanizes laborers by permitting companies to pay employees less than necessary to live a decent life, support  a family, etc; see [[living wage]]. Even without legislation, the minimum wage as of 2007 is far below the lowest wage paid by most large companies.<ref>Alan Renolds, [[Cato Institute]]. ''[http://www.cato.org/pub_display.php?pub_id=5409 Below the Minimum Wage]''</ref>

[[Socialism|Socialists]], and many economic liberals, disagree with this view of labor as a commodity because they believe it dehumanizes laborers by permitting companies to pay employees less than necessary to live a decent life, support  a family, etc; see [[living wage]]. Even without legislation, the minimum wage as of 2007 is far below the lowest wage paid by most large companies.<ref>Alan Renolds, [[Cato Institute]]. ''[http://www.cato.org/pub_display.php?pub_id=5409 Below the Minimum Wage]''</ref>