Federal Minimum Wage Flashcards, test questions and answers

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What is Federal Minimum Wage?

The federal minimum wage is a key component of the American worker’s economic security and has been a central part of our labor market for decades. The current level of the federal minimum wage, $7.25 an hour, was set in 2009 and has not changed since then. While many states have higher minimum wages than the federal rate, millions of workers remain subject to this inadequate standard.The current level of the federal minimum wage fails to provide workers with a livable income; it is simply impossible to survive on so little money when costs for goods and services continue to rise faster than wages. Without enough money coming in, working families are often forced into poverty due to their inability to cover basic needs like food, housing, health care and transportation. This issue disproportionately affects women and people of color who are disproportionately represented among low-wage workers and those living in poverty. It also affects businesses who find themselves unable to keep up with rising expenses as their customers struggle with stagnant wages. Raising the federal minimum wage would help boost incomes for millions of hardworking Americans while helping businesses keep up with rising costswithout having to increase prices or decrease hours for their employees. A raise in the hourly rate would lead to better economic outcomes: it would reduce poverty levels, increase consumer spending power which can help stimulate local economies, improve public health by reducing chronic stress associated with financial insecurity, and reduce government spending on social safety net programs such as SNAP (food stamps). Raising the federal minimum wage is also one way we can begin to address racial inequality as it applies specifically to employment opportunities; people of color have higher representation among low-wage earners so raising this rate could help close some gaps between white Americans’ earnings potentials over time. It’s time for Congress take action on this important issue by increasing the federal minimum wage above its current inadequate rateand ensuring that all American workers are paid fairly for their work no matter where they live or what kind of job they have.