Learn About the U.S. > Work and Workplaces in the U.S. > Employment > Minimum Wage and Poverty

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- Minimum Wage and Poverty
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People line up at a Salvation Army soup line in 1975.
Photo Courtesy of Chris Gulker.
Minimum Wage and Poverty
In some cases, workers can be paid less than the federal minimum wage. Workers under 20 years of age, certain full-time students, workers who earn tips, and apprentices are some of the categories of workers that fall into this category. The minimum wage was instituted to help workers in low-paying jobs have a better life. However, the federal minimum wage is at one of its lowest points in terms of how much a person earning the minimum wage could buy with the money they earn. At present, a person who works fulltime at the minimum wage would have an income well below the poverty level, which is a standard measure of how much income is required to meet basic living standards. Advocates of raising the federal minimum wage point to the drop in its value and argue that workers receiving minimum wage cannot make enough money to pull out of poverty. Those opposed to raising minimum wages often claim that small businesses will be hurt because employers will be forced to cut back on the number of workers they can afford to hire.
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