Increasing The Minimum Wage

Though there are many Americans who believe an upsurge in the minimum wage is a constructive step for the federal government to take, the most recent wage trek could result in some harmful effects. President Obama stated in September 2014, “An increase in the minimum wage will boost income for the poorest workers without the danger of creating more unemployment.” Is this statement about an increase in minimum wage really accurate? There are two very distinct sides to the debate about minimum wage. The push for a minimum wage raise is a major issue in the world of economics and politics. Political figures often place their target on the public’s general ignorance of how economics work and rely people accepting their promise to increase the minimum
federal minimum wage was first established during the Depression, and it has escalated from 25 cents to $7.25 per hour since it was first established in 1938 as part of the Fair Labor Standards Act. Despite the increases, inflation has eroded its value; returning it to the value it held in 1968, which would require an increase to nearly $10 per hour. In his 2013 State of the Union address, President Obama called for raising the minimum wage to $9 per hour, which in adjusted terms would put it back at its early 1980s levels. According to government estimates, this would boost the wages of roughly 15 million people. Increasing the minimum wage may have impacts beyond adding more money to employees’ pockets. A Purdue University study released in July 2015 suggests that paying fast-food restaurant employees $15 an hour could lead to an overall rise on everyday items. If the minimum wage is risen, businesses could increase their prices by an estimated 4.3%, according to the report, which would potentially cause more harm to people than good. After looking at these reports, critics assert that the real effects of minimum-wage increases are negative: they hurt businesses, raise prices and ultimately are counterproductive for the working poor, as they can lead to
Many people are rebutting that the increase in minimum wage would raise the incomes of around 17 million Americans, so the 500,000 jobs would be a reasonable loss. Economists are saying this is untrue. Although, it would help more people than it would hinder, it could potentially put our entire economy off balance. Raising the minimum wage has more negatives than it does positives, but the positives that are there seem to be convincing people that this is a good