Write a rough Draft of the paper? Minimum Wage is the topic I choose. Global Societal Problem, Argument and Solution Prepare: The topic of your essay needs to be a global societal problem from the following list: adult illiteracy, funding for General Education vs STEM in primary and secondary schools, minimum wage, oceans desertification, overcoming the digital divide, refugee (escaping persecution, war, or death) crises, species extinctions (modern), tax havens, Transatlantic Trade and Investment Partnership (TTIP), universal statement of human rights (pick one), airport security, or wealth disparity. Review this GEN499 Sample Final Paper Guide for additional guidance on the expectations of this assignment. Reflect: Based on the topic that you have chosen, you will need to use critical thinking skills to thoroughly understand how this topic can be a global societal problem and determine some logical solution(s) to the problem. Write: This Final Argumentative Essay will present research relating the critical thinker to the modern, globalized world. In this assignment, you need to address the following items in separate sections with new headings for each: Identify the global societal problem within the introductory paragraph and conclude with a thesis statement that states your proposed solution(s) to the problem. For guidance on how to construct a good introduction paragraph, please review the Introduction Paragraph Guideline (Links to an external site.)Links to an external site. from the Ashford Writing Center (Links to an external site.)Links to an external site.. Describe background information on how that problem developed or came into existence. Show why this is a societal problem, and provide perspectives from multiple disciplines or populations so that you fully represent what different parts of society have to say about this issue. Construct an argument supporting your proposed solution(s). Be sure to consider multiple disciplines or populations so that your solution shows that multiple parts of society will benefit from this solution. Provide evidence from multiple scholarly sources as evidence that your proposed solution is viable. Interpret statistical data from at least three, peer-reviewed scholarly sources. Do this by discussing the validity, reliability, and any biases; identifying the strengths and weaknesses of these sources; and pointing out limitations of current research and attempting to indicate areas for future research. You may even use visual representations such as graphs or charts to explain statistics from sources. Evaluate the ethical outcomes that result from your solution. Be sure to provide at least one positive ethical outcome as well as at least one negative ethical outcome that could result from your solution, and explain at least two ethical issues related to each of those outcomes. It’s important to consider all of society. Develop a conclusion as the last paragraph(s) of the essay, starting with rephrasing your thesis statement and then presenting the major points of the topic and how they support your argument. For guidance on how to write a good conclusion paragraph, please review the Conclusion Paragraph Guideline (Links to an external site.)Links to an external site. from the Ashford Writing Center (Links to an external site.)Links to an external site.. The Final Argumentative Essay Must be 3,300 – 3,900 words in length (approximately between 10 – 12 pages; excluding title and reference pages) and formatted according to APA style (Links to an external site.)Links to an external site. as outlined in the Ashford Writing Center (Links to an external site.)Links to an external site.. Must include a separate title page (Links to an external site.)Links to an external site. with the following: Title of paper Student’s name Course name and number Instructor’s name Date submitted Running header with page numbers Must include in-text citations (Links to an external site.)Links to an external site. from at least 10 scholarly sources. Be sure to integrate your research (Links to an external site.)Links to an external site. rather than simply inserting it. Must document all sources in APA style as outlined here (Links to an external site.)Links to an external site. and here (Links to an external site.)Links to an external site.. Must have no more than 15% quoted material in the body of your essay based on the Turnitin report. Reference list will be excluded from the Turnitin originality score. Must include a separate reference page (Links to an external site.)Links to an external site. that is formatted according to APA style as outlined in the Ashford Writing Center (Links to an external site.)Links to an external site.. Source Document Requirements: Multimedia sources (such as videos) may be used, but no more than two such sources may be used. If multimedia sources are used, they must be authored and distributed by credible sources, such as universities, law schools, medical schools, or professors, or found in the Ashford University Library. Government sources may be used, but no more than two such sources may be used. Examples include whitehouse.gov, state.gov, usa.gov, cdc.gov, etc. These websites can be used to make a stronger point about your proposed soluation within the argument. Where print documents are used for source materials, those must be peer-reviewed, scholarly journal articles, and academically published books. Popular media sources (e.g., newspapers, magazines, television and radio shows, etc.) must not be used. Materials from advocacy groups (e.g., Greenpeace, Human Rights Campaign, National Organization for Women, etc.) must not be used. Sites such as ProCon.org and Wikipedia must not be used. Religious texts must not be used. Good Critical Thinking Tips: Your paper should include academic sources that explain multiple sides of the issue. Your interpretations of the evidence should be objective and state the conclusions and theses presented in the evidence clearly and fairly. Your paper should place the various forms of evidence in relation to one another and demonstrate why one form or perspective is stronger than the other positions that one could take on the issue. Your paper should point out the limitations of current evidence and attempt to indicate areas for future research. Writing Tools: Before you submit your written assignment, you are encouraged to review the The Grammarly Guide: How to Set Up & Use Grammarly tutorial (Links to an external site.)Links to an external site., set up a Grammarly account (if you have not already done so), and use Grammarly to review a rough draft of your assignment. Then carefully review all issues identified by Grammarly and revise your work as needed.


Minimum wage


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Minimum wage


Minimum wage is the critical labor standard that is put by a federal government to ensure that their low paid worker gets a fair wage according to their perceptions. The minimum wage has given economists a space to try debate the impacts of this controversial law. Employers have to follow the federal minimum wage that has been imposed in their jurisdiction. Researchers have evaluated how the minimum wage affects the economy and the workers that benefit from the minimum wage. They have also shown how the minimum wage value has caused a declined within the states and has influenced the growth of income inequality. According to the recent studies, making more than their minimum wage to live comfortably has become a requirement.

The economists have always tried to measure where the minimum wage should be through different ways such as the change in price.  Looking at the improvements and growth in the economy, the minimum wage should have considerably changed. There have been claims that many businesses may not afford to pay their employees high minimum wages and have therefore been forced to lay off workers, reduce hiring or close making it difficult for the low skilled workers that have no work experience to get their jobs (Miller et., al 2009). There have been arguments on effects of raising minimum wages as others say it improves the standard of living and while others it boosts their daily consumption while others argue that it impacts the companies hence hiring fewer employees hence reducing job opportunities.

A standard minimum wage will enable create more job opportunities and also grow the economy. The minimum wage should be efficient to support the needs of an average employee. Therefore, it is important to keep pace with rising wages and adjust the minimum wage to maintain constant median-to-minimum wage ratio.

Background information

The federal minimum wage was formed in 1938. It is taken as an inclusive of FLSA (Fair Labor Standards Act).  This was to ensure that the workers would be justly rewarded to ensure that they meet their basic needs and have a quality standard of living. Over decades the lawmakers have it difficult for the low minimum wage workers through allowing the minimum wage to erode. Inflation has lowered the buying power of a minimum wage income.  Despite the wage being increased, it has been increased by a small value that has been done only to adjust a small portion of the inflation.

A low purchasing power has caused the low wage employees to work longer as they try to get a better standard of living.  Despite the fact that United States has a tremendous increase in labor productivity, that could support a significant quality of life, they still have a low minimum wage. The policymakers have failed to neglected basic labor standard whereby a person with a minimum wage cannot earn through full-time work and still remain below the poverty line. Raising the minimum wage will still insufficient because it’s a controversial issue. The productivity and technological advancement that countries have achieved for the last 50 years have not benefited all the workers. This, therefore, means that the policymakers have to enact the increase of minimum wages to not only a legislated increase but a bolder increase.  

Since the Fair Minimum Wage Act in the year 2007, there have been many unsuccessful attempts to raise the wages further by the Congress. The public has also supported the opinion of raising wages to increase their living standards. Worldwide, most of the workers and consumers would like to bring an end the issues related to minimum wages through establishing a global minimum wage.  The debate on minimum wages is not new, it has been in existence with numerous debates and global economic issues.

Global issues related to minimum wage

When minimum wage earners are unable to make enough to get by, it affects everyone that associates with them. This is a legal minimum that has been set for all workers which means that the workers have been guaranteed for a certain hourly pay that contributes to helping reduce the relative poverty. However, some issues or problems are associated with minimum wages which affect the firms and the workers. These include;


A minimum wage can cause unemployment when the labor markets are competitive.  This is because the firms will have to demand or less labor and wages that are higher to encourage the workers to supply their labor for a competitive advantage (Noe et., al 2003). For instance, cleaning companies and hairdressers may proportionately increase their wage bill in such a situation. Minimum wage is also considered to impose cheap available labor hence lowering minimum wage jobs. Minimum wages that are high send away the low skilled worker with limited work experience. The young people have suffered a lot due to the limited work experience causing them to remain unemployed or receiving low minimum wages in the labor market. When an employer requires a person to complete a certain task at $3 in an hour they will not go and employ someone whose minimum wage is $9 in an hour. Therefore, it is clear that the minimum wage has included unemployment under minimum wage with a more effect than it would have been.


Inflation and black market

Minimum wage can also lead to inflation in the economy. This is because the changes in minimum wages lead to increased cost to the firms which are passed on to the consumers. It can also lead to people operating in the black market. Through this, the company can be involved in that to avoid legal minimum payment.

Welfare and work incentive

Minimum wages tend to affect the people and their willingness to work with a deduction of labor from unemployment benefit. When a person is given more unemployment benefit there is always a less incentive to work. A person works in the difference between relief and potential wages (Neumark et., al 2007).  For instance, if the relief is $105 while the granted wage is $109 in a week. Therefore, the person is only required to work for $4 in a week. When working full-time hours at a minimum wage of 40-hours-per week a reduced net income, comparing this to a generous unemployment check and working zero hours, it is therefore rational to quit working.

Limited Anti-poverty benefits

Many of the people that benefit from the minimum wage earners have been considered to be second income earners. This, therefore, means that households are not in the poverty line of the minimum wage earners. However, an income earner that is slightly below the minimum wage is still considered to be poorer (Blanpain et., al 2014). This is because the limitation of the minimum wage will not increase the incomes of the low-income groups.

Increasing minimum wage

Raising minimum wage has been a controversial issue. It might cause the reduction in the job opportunities because business might not afford to hire employees that will not benefit the company in revenue generation. It has been criticized because it is considered to increase the cost of products and services. This, therefore, brings the opinion that the low wage worker would, at bets stay without increased minimum wages.

Reducing training opportunities

Minimum wages are considered to lower the income, low working skills into an artificial floor which has therefore removed the opportunities to acquire new skills and advancing in new jobs. Rather than increasing their income, the law has caused cutting off their bottom rungs for the employment ladder hence offering low skilled workers that now achieve moderate paying the jobs.

Proposed solution

Raising the minimum wage

The minimum wage for workers has been increased in the past in most populations. For instance, in Massachusetts, they received the biggest increase from$8 to $9 while California increased to$9 and Florida increased from$7.93 to $8.05. Other municipalities including San Francisco and Los Angeles are anticipating to hike up their wage floors to $15 in the coming years. Increase in the minimum wage should be good news for the workers who get low payments and cannot afford housing, education, and transportation in their nations. Increase in the minimum wage is related to welfare spending, employment and increased job creation (Neumark, 2007). The policymakers are also aiming at attracting and retaining industries that can produce the low and middle-class jobs as a means to ensure that the small wage workers can acquire employment to benefit from the increased minimum wage (Loyd, 2010). Turning the employees into owners can be a better way that the company can pay more without straining its resources. This has potentially enabled the workers to earn more than their minimum wages.

For other public companies, the workers have been involved in payment stock and guaranteeing to buy back the stock under certain conditions. For instance, assuming that the current wage per hour is raised from $7.25 to $13.25. Under this method, the employee is paid $7.25 in cash, and the rest is paid in stock. The employee will hold the stock throughout the financial year, and after the period they will sell back the shares to the company at the highest price that the stock has achieved during the last three months of that year. If the stock falls, the company guarantees the original value of the stock to the employee to ensure a safety net. While if the company performs better in its stock, it will net the employee more than $6 according to the time of awarding (Neumark, 2007). This, therefore, is a meaningful gain for the employees that are used to raise their wages beyond their minimum wages.

The Earned Income credit tax

The earned income tax is considered as an effective way to which poverty can be reduced for the low-wage workers (Vaughan, 2010). This is a refundable tax credit that is given to workers in moderate and low-income families. The share that the workers receive the credit is considerably high as compared to the minimum wage hike (Bennett, 2014). This increases only after the credit wage rates of moderate and low-income families’ increases depending on the number of family children. It shows that it increases the labor force, employment and participation of the working family members. The earned income tax certainly more effective and efficient in the provision of benefits and increased employment for the low-income families (Loyd, 2010).  The credit tax can push a family out of poverty. This is because they raise the hourly wages of the workers.

Basic income

While raising the minimum wage does make sense, the people need to make more to survive than they can survive using the minimum wage. The smarter solution would be to give the individuals enough money to ensure that they live regardless of their status of work.  This idea is known as the universal basic income that has had a large popularity in the last few years (Bennett, 2014). For instance, the Dutch city announced that they would begin a basic income experiment as did in Finland and Canada. The goal of this solution is to ensure that the citizen’s basic welfare falls under the government purview. Through the use of minimum wage in achievement has put pressure on the small businesses that have been forced to lay off its worker and at some point close. Through removing the work needs, basic income skirts through the problem by giving money to individuals up front (Jones, 2006). This has therefore freed people to pursue jobs that may not offer salaries that they may like, but it spares the employer from the burden of having a wage that may not be sustainable to them.

For centuries, people have been making money the same way. They have earned a living related to the skills they have offered to the society. Recent evidence is however overwhelming because automation is replacing the workers faster in such a way that the economy cannot handle (Blanpain et., al 2014). The consequences are that money cannot be made based on the services they offer to the society. This is because they won’t be useful anymore. Therefore, there has to be another way of generating and distributing income.

The basic income has therefore poised to ease the distribution of income. This form of income distribution is whereby people earn a monthly allowance that they use to cover their own basic needs such as the food, shelter, and clothing, whether they are working or not (Vaughan, 2010). The idea has spread for the last few years with most countries are beginning to use the program. As the nature of work begins to change, disruption will ultimately affect the lives of the people. But if a nation guarantees the basic income floor for everyone, this will help control the situation of the people not to fall into desolate poverty. The basic income covers all groups which include the displaced and the employed. It is also important to note that productivity will tend to rise due to the basic income provided to the people (Saget, 2008). The basic income is a more effective solution because it offers workers with the reassurance that they will be able to put up their basic needs hence having a peace of mind that their payroll does not cripple them.


Statistical data

Adjusted due to inflation, the federal minimum wage peaked back in the year 1968 with $8.68 (in 2016 dollars). After being raised to the current minimum wage $7.25 per hour, it has lost approximately 9.6% due to inflation (Vaughan, 2010). Economists have estimated that the United States had been expected to be paying a minimum wage of $12 an hour. This is according to how rich it is and its pattern of advanced economies in economic development and cooperation. It is also evident than 45% of the 2.6 million hourly workers that were estimated to be below or at the minimum wage was at the age between 16-24 years. In addition to that, 23.3% aged between 25-34 years. This 2.6 million is 2% of all the salary and wage workers. This, therefore, indicates the effect of inflation and purchasing power to the minimum wage of workers.

The food and service industry is one of the biggest that has most near minimum wage employees.  Report shows that 3.75 million of the individuals that are near the minimum wage, 18% of the total work in food service and restaurant industry. Among them are employees aged 30 and below. About a quarter of the near minimum wage employees are in their 20’s and 30’s work in that industry. However, most of the workers in that industry are tipped hence increasing their gross to $9.98 an hour. The industry has 20% of its sales being of higher cost as compared to other industries. This indicates that the minimum wage is mostly for the young people but not the households hence cannot cause poverty to the workers but can increase the price level of the products and services.

In 2017, EU member states (Austria, Cyprus, Italy, Sweden, and Finland being exceptions) made their national minimum wage (Saget, 2008). Compared to the 2008 minimum wages, the 2017 reports show that they were higher in every EU member except for Greece where they were low by 14%.  In that gap, the minimum wages in Bulgaria doubled and increased by 109% with the rate of changes being higher in Romania by 132%. According to the data collected, the gap between the level of minimum wages between the countries was considerably one price level differences when applying the purchasing power parities. This, therefore, is an evidence of the effectiveness of income credit tax which has raised the individuals above the poverty line in most of the EU members.

Strengths and weaknesses

The data has been collected regarding the specific problem which is minimum wage through a procedure that fits the problem best. This has made it easy to analyze and address specific issues that are related to their situation. The data has been collected in such a way that timely measures can be easily instituted. It is more of objective rather than subjective because it has been gathered from the field. It has no unbiased information hence easy to measure validity and reliability. The data is confined into federal and state data sources with a vast of information and findings gathered. However, the data is not interpreted into detailed findings of the results.


Non-probability sampling that prevented the research from making the generalization of the population being studied from the data collected. This was due to limited data sources for evaluating minimum wage statistics.

Ethical outcomes

Positive ethical outcome

The earned income credit tax is much more effective and targeted policy that aims at helping the low-income families because it enables raise only the earnings for moderate and low-income families.  Thus, they receive many benefits making it more beneficial for the poor households. It increases their labor participation and employment. This, therefore, is an effective way to reduce poverty hence expanding the tax credits can make a big difference in people’s lives and return some of them beyond the minimum wage.

Negative ethical outcomes

For instance, Chipotle, the burrito chain, has raised its prices to almost 14% which has corresponded to the minimum wage increase that went on in San Francisco. Their workers have received the hike in salary, but the burden of increased wage has reflected back to their customer. This has made the workers not to view the value of their wage increase due to the increased price of products due to minimum wage increase.  The number of employees in the competitive market will lower due to the increased wages hence causing unemployment. The low skilled and limited experienced workers are likely to lose their jobs as the companies try to lay off their workers due to increased minimum wage. The increase in minimum wage is not an effective way of reducing poverty (Bhorat, 2014). This is because most of the households within the minimum wage line hence it is not related to decreasing in poverty rates. It is not also related to poverty because most people living in poverty do not work.


It is important to keep pace with increasing overall wages through maintaining the minimum-median-wage ratio. Minimum wage ratio has been a global issue due to its effect on the standards of living. Many problems are associated with the minimum wage in the society. These include unemployment, reduced training opportunities, increasing wages, inflation, black market, welfare and work incentives and limited anti-poverty benefits. These, however, can be solved through alternative solutions such as income tax credit, basic income and at some point increasing the minimum wage. These will effectively sole the minimum wage problems and offer best policy solutions. This is paper has, therefore, analyzed the minimum wage and its global issues and how they can best be solved with statistical analysis that has offered information for different populations. This has therefore helped in having the best way to solve minimum wage global issues.



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Miller, D., & Williams, P. (2009). What price a living wage? Implementation issues in the quest for decent wages in the global apparel sector. Global Social Policy, 9(1), 99-125.

Vaughan-Whitehead, D. (2010). The minimum wage revisited in the enlarged EU. Edward Elgar Publishing.

Neumark, D., & Wascher, W. L. (2007). Minimum wages and employment. Foundations and Trends® in Microeconomics, 3(1–2), 1-182.

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Lloyd, C., & Mayhew, K. (2010). Skill: the solution to low wage work? Industrial Relations Journal, 41(5), 429-445.


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