Raising the minimum wage will ruin our economy. Look at the big picture, businesses and companies will struggle or close, poverty will increase, and the price of consumer goods will rise. There are a few things that let economists know how the economy is doing at the moment. They’re called economic indicators, and 2 of them are consumer confidence and unemployment rate. The more people that are unemployed, the less money being used to buy things which hurts the economy. When people don’t have jobs or are scared about losing their jobs, it affects the way they buy things (consumer confidence, their will to or not to spend their money) which in return, hurts the economy. If the minimum wage is increased then certain businesses won’t be able …show more content…
In places in California, they raised the wage by 36% and then the price of coffee went up by 10-20%. They did the same thing in Chicago, the wage was raised and then coffee went up in prices by 6-7% Small things that we use on a daily basis will slowly become too expensive for us to purchase. Fast food franchises and restaurants will be inclined to reduce the size of their products by 12-70% and then raising the prices. On one hand, it maybe a good thing for our cholesterol and hearts but if we’re gonna buy it, we should get the portions we pay for. In stores, healthy foods are already over priced, most families can’t afford to buy the healthy foods which means they must resort to the cheaper unhealthy foods. They can be harmful to your body, especially in large quantities. They can cause many health problems such as diabetes and obesity. Both of those are hard to deal with and both can or will stay with you for the rest of your life. Again, there's a lot of reasons of why the minimum wage shouldn’t be raised but a few of them are, businesses and companies will close or struggle, poverty will increase, and the prices of consumer goods will increase too. The economy already struggles, raising the minimum wage will set off many economic indicators. That means that our economy will start to go down
Just think about how many more people are negatively affected . {PAUSE} Alyssa: A higher minimum wage wouldn’t cause any significant impact on prices and would instead help businesses and the government. In fact, “The government would save forty-six billion dollars over ten years since people would earn enough to no longer qualify for the Supplemental Nutrition Assistance Program.”
If they raised the price than the people who make minimum would have to make more money so they would have to work two jobs making they spend less time with friends and family. Raising minimum wage would do absolutely nothing because it 's like if you had 2 dollars and something cost 4 you work a week get 20 dollars and then have 22 you can buy it but then the price raises to 26 dollars and so on. Finally people suggest the fact that even if you raise minimum wage than not all people would still want a job and it would be harder to find a job making the poor population either rise because of people getting fired or get better because of people finding
First, one main reason that the minimum wage should be raised is because the economy will prosper. “Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period” (ProCon). This quote shows that the economy will flourish from the increase of the minimum wage and that unemployment will decrease. Another quote that shows how raising the minimum wage will affect employment is “To the extent that through these contour effects it affords as much as 70 percent of the workforce greater purchasing power, it effectively increases aggregate demand for goods and services, which should ultimately lead to the creation of more jobs” (Challenger 19). Bryan Covert supports raising the minimum wage by
The American Action Forum believes that raising the minimum wage can do more harm than good and hurt the people it’s supposed to help. Job loss in the millions would happen if the wage was raised from $7.25 to $15. People in poverty before the increase would have trouble finding jobs because companies would have to have less positions to counter the wage raise. Komlos, John. " Column: Why Raising the Minimum Wage Is Good Economics."
Minimum wage should not be raised because it is not an income that someone sold live off of. Minimum wage in the country is currently $7.25 but some states have changed it in a way that is way too much. For example Washington state currently has the highest minimum wage at $9.32 that’s a $2.07 increase to the current amount minimum wage. Seattle is currently considering to raise their minimum wage to $15 it’s understandable that the city is very large and things cost more money but if they raise minimum wage to $15 that will only bring inflation causing things to cost only more money than it already does. If there is one thing that should not be done to the country it is to cause inflation.
When wages are low, individuals often struggle to make ends meet, leaving little room for savings. By raising the minimum wage, individuals may have a greater opportunity to save, improving their financial security and ability to invest in their
The federal minimum wage should be increased because raising it would increase the economic activity and spur job growth, decrease poverty, and also improvements in productivity and economic growth have outpaced increases in the minimum wage. Increases in job growth and economic activity will happen when the minimum wage is elevated. If the minimum wage was increased it will “inject 22.1 billion net into the economy and create about 85,000 new jobs over a three year period”. (“Raising the Federal minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost") Thousands of new jobs will be created and it will put billions of dollars into the economy.
I think that they should not raise minimum wage. Because it can have an effect on the economy. Some say that extra money in worker paychecks would provide a real boost to economy.obama is pushing congress to increase the federal minimum from 7.25.polls show quarters of americans favor a higher minimum wage. Business owners say rasing the minumum wage also upward pressure on other wages. Increasing the minimum wage can have a harmful effects on the econmy.
The minimum wage could benefit some workers to pull them out of poverty and also some business owners. Consumers will experience paying more because of inflation. Consumers often spend lots of money on gas and food items. The raise in minimum wage will cause them to start spending more money on those
Since the Great Depression, there has been a minimum wage in America, but this minimum wage has changed 22 times since the Great Deprnbession. Many people say minimum wage should stay at $7.25 like it has been since 2009. Meanwhile, other people believe that minimum wage should be $15.00 so they can have more money to live comfortably. People think that a higher minimum wage will help, but it will hurt more people than it will help. If America makes the minimum wage $9.00, people will no longer be in poverty and it will make the economy balance out.
There are a lot of potential benefits for an increase in minimum wage and on the surface it’s hard to see why you wouldn’t want to increase the wage. One of the clearest to see is that an increase to the minimum wage will also increase the spending for each household during the following years. So it works to help stimulate the economy in whatever area you increase the minimum wage. Along those same lines increasing the minimum wage will lead to a decrease in poverty as well. With the decrease in poverty you will also see a decrease in government spending on welfare items because the individuals receiving the higher wage in theory will be able to pay for these services/welfare items without assistance.
Opponent’s opinion is that minimum wage forces the employers to hire fewer employees because they have to pay more to their workers and the cost will increase. Other opponents say that it can increase the prices as businesses must raise their prices to adjust the higher wage and keep the profit stable. In 1995, the Congressional Joint Economic Committee published a review of 50 years of academic research on the minimum wage . The study found many negative impacts of increasing minimum wage, the findings include: reducing training for workers, increase job turnover, reducing school attendance, and encouraging employers to hire illegal workers.
Raising the minimum wage will cause prices of goods, accessories , and needs to rise as well. As my first source says “A 2013 article by the Federal Reserve Bank of Chicago stated that if the minimum wage is increased, fast-food restaurants would pass on almost 100% of their
(Mankiw, 2008) But it is bad for those employees who get laid off (i.e. become unemployed) because the employers now find it expensive to hire them due to the minimum wage legislation. (Besanko, David, Dranove, & Shanley, 2000) Thus, minimum wage leads to a rise in inequality. This would be explained using a hypothetical example.
In the past three years, many politicians and labor unions have been pushing for an increase in minimum wage. Minimum wage is the lowest set wage by a law of a government body. An increase in minimum will benefit some people, and hurt others. An increase in minimum wage will cause benefit in the short run but will be very damaging to the economy in the long run. There should not be an increase in minimum wage because it is unhealthy to the economy in the long run and it will be the major cause of job loss, increase in inflation, competition, and the price level of goods and services.