What is the purpose of the Fair Labor Standard Act?
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.
What can government do to reduce income inequality?
Social spending has been shown to reduce inequality by 20 percent across OECD countries. Taxing the wealthiest in society more than the poorest directly reduces income inequality. If these taxes are invested in public services, they can further reduce inequality.
What are the main causes of income inequality?
Income inequality varies by social factors such as sexual identity, gender identity, age, and race or ethnicity, leading to a wider gap between the upper and working class.
How does government policy affect income inequality?
Policies that can affect the level of economic inequality include redistribution between rich and poor, making it easier for people to climb the ladder of opportunity; and estate taxes, which are taxes on inheritances. Pushing too aggressively for economic equality can run the risk of decreasing economic incentives.
Does Fair Labor Standards Act still exist today?
Today, most Americans still support the FLSA whether or not they know about the actual law. And, in the face of growing concern about economic inequality, FLSA provisions remain newsworthy. Today, Americans take for granted minimum wages and overtime rates and the fact that children don’t work.
What is the purpose of the Fair Labor Standards Act quizlet?
The Fair Labor Standards Act (FLSA) is a federal employment law that defines employer obligations relating to employee wages, hours, overtime, and child labor. The FLSA applies only to employers whose annual sales total $500,000 or more or who are engaged in interstate commerce. the law covers nearly all workplaces.
Why does the government need to stabilize the economy?
Stabilization policy is a strategy enacted by a government or its central bank that is aimed at maintaining a healthy level of economic growth and minimal price changes. In the language of business news, a stabilization policy is designed to prevent the economy from excessive “over-heating” or “slowing down.”
Why should we reduce inequality?
What can we do? Reducing inequality requires transformative change. Greater efforts are needed to eradicate extreme poverty and hunger, and invest more in health, education, social protection and decent jobs especially for young people, migrants and other vulnerable communities.
Why does inequality cause poverty?
Inequality is important to poverty because the relative position of individuals or households in society is considered an important aspect of their welfare (Coudouel et al., 2002). There is a tentative consensus in the literature that inequality tends to reduce the pace and durability of growth (Ostry et al., 2014).
How does income inequality affect the economy?
Inequality hurts economic growth, especially high inequality (like ours) in rich nations (like ours). That makes them less productive employees, which means lower wages, which means lower overall participation in the economy.
What would probably occur if government policies to reduce poverty or to economic equality were taken to extremes?
What would probably occur if government policies to reduce poverty or to encourage economic equality, were taken to extremes? It would reduce incentives to work and reduce economic output.
Does the Fair Labor Standards Act of 1938 still exist today?
Still active today, it affects millions of full and part time workers in the private sector and the federal, state, and local governments. Under the Fair Labor Standards Act, the first minimum wage (25 cents per hour) was established.
Do low-income workers pay federal income taxes?
Most low-income households do not pay federal income taxes, typically because they owe no tax (as their income is lower than the standard deduction) or because tax credits offset the tax they would owe. Some receive substantial rebates via refundable tax credits. However, nearly all low-income workers are subject to the payroll tax.
Why do low-income families not pay taxes?
A. Most low-income households do not pay federal income taxes, typically because their incomes are lower than the combination of their allowed standard deduction and their personal and dependent exemptions, or because they receive substantial rebates via refundable tax credits.
Should the government intervene to control income inequality?
Therefore, the government should not intervene by attempting to control income inequality. Many of the social externalities that have been linked to income inequality, such as poor health care, lack of opportunity and higher crime, are in actuality repercussions of poverty and not directly linked to income inequality itself.
Should the government help the poor or the rich?
In the long run, helping the truly poor is a much more beneficial goal than narrowing inequalities. Past attempts by the government to halt the explosion of income inequality have included a more progressive tax system, increased earned income tax credits and other policies that attempt to redistribute wealth from the rich to the poor.