Ever since the establishment of a federal unemployment rate back in the 1930s, there has been an ensuing debate on whether the minimum wage contributes to increasing the unemployment rate, or whether it keeps poverty levels low.

Economists have been arguing that eliminating the minimum wage would allow some struggling companies to create more jobs. But the New York Times recently highlighted a study conducted by the University of Massachusetts, the University of North Carolina, and the University of California that found that the minimum wage has no effect on employment levels, but that it increases the standard of living for employees who work in low-paying industries like retail. Here is a short video relating to the study.

You are welcomed to compare the results of the study to the following facts pertaining to the minimum wage situation in the US.

1. A 2000 Census revealed that more than 10 million minimum wage workers are in the US
2. In January 2011 the minimum wage in San Francisco will be increased to $9.92
3. Currently, five US republican states have no minimum wage requirement: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. Historically, the Republican Party has been in favor of eliminating the minimum wage, while the Democratic Party favors an increase to the minimum wage.
4. The poverty line for a family of four is an income of $22,050 per year.
5. In 2006, half of the economists surveyed felt that the minimum wage should be abolished.

In light of the recent US mid-term election results, what do you think of the minimum wage? Should it be abolished altogether? Do you think it prevents poverty? Do you think it increases unemployment?

Do share your thoughts.