An Unlivable Minimal Wage
In America, there is an thought that if you work hard, you can accomplish great things. There is an terminal end of holding a house, household, and other things in life that many of the low-wage category position as luxuries. Some people coin this set of ends as the American Dream. The current minimal pay wholly undermines this thought. “President Obama has framed his push to raise the minimal pay in similar footings, naming income inequality… a misdemeanor of ‘middle-class America’s BASIC deal that if you work hard, you have a opportunity to acquire ahead’ ( Justice 1544 ) .” Karl Marx, the German economic expert and writer of The Communist Manifesto, believed that lower limit pay was simply in topographic point to maintain workers working for the capital, and the capital working for itself.
Minimal pay is a much more complex issue than most people understand. Many would reason that if it costs more for companies to use people, they will engage less people and bear down more money for their merchandises. Without any economic instruction, this would look logical ; companies have to pay more, they raise monetary values of their merchandises to counterbalance, and they retain less employees since they have to pay them more. The truth is, in fact, the antonym. As minimal pay additions, companies will hold to pay their employees more, doing a little rise in the monetary value of their merchandise. However, if the merchandise that the low-wage company is selling is a necessity, such as nutrient, they would see a rise in demand for their merchandise. This is because the low-wage category would hold more wealth, which they are more likely to pass on necessities, instead than luxuries. Luxuries are trade goods like yachts, athleticss autos, and other expensive merchandises that are more available to the capital category. Monetary values can besides merely somewhat lift for merchandises, as competition with other companies keeps them down. Raising minimal pay additions demand, switching the demand curve to the right for necessities, whereas it decreases for luxuries, switching the demand curve to the left. This more equally spreads the wealth from the capital category to the low-wage category. Harmonizing to Gar Alperovitz, the top five per centum ain about 70 per centum of fiscal wealth and more than 80 per centum of unincorporated concerns. “The top one per centum now claim more income each twelvemonth than the bottom one-hundred million Americans taken together ( Taking the Offensive Online ) .” When a county’s rich go really rich, much like in America, the demand for luxuries additions and, therefore the production of luxuries is favored over necessities. This is the thought that the rich stay rich, while the hapless stay hapless. Raising the lower limit pay non merely distributes the wealth from the high category to the low, but displacements demand from luxuries to necessities.
Marx defined minimal pay as “the quantum of the agencies of subsistence which is perfectly needed to maintain the labourer in bare being as a laborer” ( Communist Manifesto ) . If a company pays a labourer excessively good, that labourer could lift out of being a labourer into the capital category. Marx said that he did non desire to acquire rid of the personal appropriation of the merchandises of labour, he wanted to acquire rid of the system that makes the labourer simply work to increase capital and be ruled by it. In our society, populating labour is but a means to increase accrued labour. In communist society, populating labour is but a means to widen, enrich, and advance the being of the labourer. Another comparing made in The Communist Manifesto is our society allowing the past dominate the present, while the present dominates the yesteryear in communist society ( pg 53 ) . This fundamentally means that the wealth in our society goes on to the following coevals and corsets in the household. The rich usually stay rich, while the hapless normally stay hapless in our society. In the proposed Communist society, everyone has an equal part, which grows as society does.
What does minimal pay allow for today? The lower limit pay in Colorado is $ 8.23 per hr. At 40 hours a hebdomad, that is $ 329.20 a hebdomad before revenue enhancements and other tax write-offs. That is 1,316.80 a month, or $ 15,801 yearly. This is really below the poorness line for a two-person household. A recent challenge was proposed to congressman to seek and populate on $ 77.00 for a hebdomad. $ 77 is the hebdomadal budget for a minimal pay worker subtraction mean revenue enhancements and lodging disbursals ( Thinkprogress.org ) . The congresswomans that tried to lift to the challenge failed. The $ 77.00 had to last them a hebdomad and cover all of their transit, repasts, food markets, and recreational disbursement. This was a wake-up call for many people, as most do non understand what it’s like to seek and raise a household on lower limit pay.
What does minimal pay do to our state? I asked a friend of mine if minimal pay allowed the economic system to make its maximal potency. His answer was that minimal pay was non at all meant to be a pay to populate on. He explained, from his point of position, that minimal pay is merely a pay that people are paid while they are in college or preparation for another occupation that will pay a true life pay. However, harmonizing to Marx, lower limit pay is a pay supplying for the subsistence that is perfectly required to maintain the labourer in bare being as a labourer. “What, hence, the pay labourer appropriates by agencies of his labour, simply suffices to protract and reproduce a bare existence” ( Communist Manifesto ) . In other words, lower limit pay merely pays the labourer adequate to remain alive and maintain them coming back to work. It was interesting to hear my friend’s point of position on lower limit pay, but does everyone portion his position? If they did, so that would intend that minimal pay is merely a impermanent pay paid to people working impermanent occupations until they can travel on to a higher paying calling. Most of the clip it is socially understood that college is the tract to a occupation that pays good. This pigeonholes many Americans into believing that college is the lone tract to a high-paying calling, instead than advancing little concern and entrepreneurship. This keeps large concerns alive and booming ; college included. What about the people that are both in school and working a minimal pay occupation? Using myself as an illustration, a minimal pay occupation would simply be at that place to supplement my work survey occupation. I get a upper limit of 20 hours per hebdomad at 10 dollars per hr, amounting to around two hundred a hebdomad after revenue enhancements. This gives me around eight hundred dollars a month. After paying 50 dollars for my cell phone, one 100 for my auto insurance, which is merely that cheap because it is through my parent, and so three hundred to my female parent for nutrient and electric. My monthly disbursals sum to around four hundred and 50 dollars a month, go forthing me with merely three hundred and 50 dollars for the month, or 87 dollars per hebdomad, to utilize for transit, recreational disbursement, and any exigencies that may come up. If I was looking to travel into my ain flat, the norm for a one sleeping room flat in my country is about eight hundred dollars a month. This would force me to the threshold of being homeless. At eight hundred a month, before public-service corporations, plus my one hundred to auto insurance and 50 to my phone, would go forth me with negative one hundred and 50 dollars for the month before nutrient and transit disbursals. I would hold to pick up a 2nd occupation, giving clip that could be used to analyze or merely bask my young person. Working two occupations and being a full clip pupil is a major work load that would be required if I wanted to populate by myself. This pushes people to populate with roomies, or live in countries, that they would hold otherwise ne’er imagined life in. It besides leads to dependency on authorities aid plans like nutrient casts and Medicaid. This full procedure is a barbarous rhythm. Peoples either have to work at a minimal pay occupation because they have no accomplishments, or people seeking to derive accomplishments by traveling to school hold to work multiple low-wage occupations to keep their life style.
In the terminal, lower limit pay is non a realistic option for back uping a household. Today’s minimal pay reflects more of a Marxist theoretical account in the manner that it simply keeps the worker coming back to work, instead than leting for growing or rise in category. The term minimal pay does non accurately stand for what the minimal pay in this state is. It is non the lower limit pay necessary to back up a household on. It is a pay that keeps people in poorness and measure uping for authorities aid plans because it is non working. After researching this subject extensively, I wholly understand why people are protesting over the minimal pay. I have worked minimal pay occupations before, but even at 40 hours a hebdomad, it was excess disbursement money. Something to prolong my recreational wonts as a high school pupil life at place for no rent. Minimal pay is genuinely non a pay that is designed for people to raise households on, and I would urge farther research on the subject to anyone interested. “Moreover, as by and large is the instance in political relations, electors remain rationally nescient of the issue and the relevant research ( From Minimum ) .”
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Marx, Karl, and Friedrich Engels. “ II. Proletarians and Communists. ”The Communist Manifesto: A Modern Edition. London: Verso, 1998. Print.
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