Minimum wage

The minimum wage is the lowest wage that an employer may legally pay their workers. More than 90% of countries in the world have minimum wage laws.

Most countries have a minimum wage. The minimum wage in the United states was most recently raised to $5.85/hr, on July 24, 2007, in a bill created by California Representative George Miller and signed into law by George W. Bush. At this rate, a person working a 40-hour week for 52 weeks a year at minimum wage earns $12,168.00 for the year. The minimum wage is higher in many states, such as New Jersey, due to state minimum wage laws.

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 jobs. 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.

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.

See also:

• maximum wage