Pros And Cons Of Increasing Minimum Wage
Should we increase minimum wage to $15? This is a question that has been a very controversial topic that has been debated present day. The main goal of increasing minimum wage is to lower the poverty level and to increase economic growth, however it may actually do the exact opposite. In this paper I will answer many of the questions that are asked over this topic, but also put my individual input on this debate.
What are the positive aspects of a higher minimum wage? A pro to increasing minimum wage is that it will stimulate the economy. According to Economists from the Federal Reserve Bank of Chicago “a $1.75 rise in the federal minimum wage would increase aggregate household spending by $48 billion the following year”. The reason for this is that people will now have more disposable income, because they are now earning more money then they did before increasing minimum wage, this then leads to them to spending more, thus increasing economic activity. Another pro in theory is that it will increase employment, the reason behind this is that because people are spending more on goods (as stated previously), business are now receiving more money in return. This gives business an incentive to hire more not just because of the increase in money they have received, but also to keep up with the increase in sales. The final pro in theory is that it will decrease the expense of social programs. Many of the people who rely on just …show more content…
Having a uniform federal minimum wage is good because it is very fair, if states were in control of minimum wages people would feel that it is unfair that people in other states, this would cause people from other states then move to the states that have higher pay. It will then take away job opportunities from the state that has the higher pay, but also takes away available people in work force at the state that had the lower
What are the positive aspects of a higher minimum wage? A pro to increasing minimum wage is that it will stimulate the economy. According to Economists from the Federal Reserve Bank of Chicago “a $1.75 rise in the federal minimum wage would increase aggregate household spending by $48 billion the following year”. The reason for this is that people will now have more disposable income, because they are now earning more money then they did before increasing minimum wage, this then leads to them to spending more, thus increasing economic activity. Another pro in theory is that it will increase employment, the reason behind this is that because people are spending more on goods (as stated previously), business are now receiving more money in return. This gives business an incentive to hire more not just because of the increase in money they have received, but also to keep up with the increase in sales. The final pro in theory is that it will decrease the expense of social programs. Many of the people who rely on just …show more content…
Having a uniform federal minimum wage is good because it is very fair, if states were in control of minimum wages people would feel that it is unfair that people in other states, this would cause people from other states then move to the states that have higher pay. It will then take away job opportunities from the state that has the higher pay, but also takes away available people in work force at the state that had the lower