Raising Minimum Wage Increase In The United States

752 Words4 Pages
Many people, form state legislators to various interest groups, in the United States are advocating increasing the minimum wage. There are several reasons for this, including the thought of it boosting the economy out of recession. Some other reasons are that it will improve the standard of living, boost consumer buying power, and provide a more stable and productive workforce. While these reasons are good in theory, raising minimum wage can be detrimental to small businesses and the economy. While earning more money is a positive thing, the negative of job losses are bigger. By raising minimum wage, there could be substantial job losses for young workers. According to Opposing Viewpoints, "A 10 percent increase in the minimum wage reduces employment of young workers by 1 percent to 2 percent” (Raising the Minimum Wage Will Not Reduce Poverty, David Henderson). In 2007, Governor Arnold Schwarzenegger wanted to raise the state minimum wage from its current $6.75 an hour to $7.75. Governor Schwarzenegger 's suggested 15 percent increase in the state minimum wage would destroy about 35,000 to 70,000 unskilled jobs. The 15 percent increase would end up placing 1.5 to 3 percent of young Californians out of work. According to David Henderson of Opposing Viewpoints, “[a] 15 percent increase in the minimum wage nationwide would…show more content…
According to Michael Reich, a professor of economics at the University of California, Berkeley, “[I]t would be disingenuous to suggest that the potential costs of raising the minimum [wage] could never outweigh the economic benefits. ‘We don’t know at what point that kicks in,’ he said. ‘We know that hasn’t happened at 50 percent or 55 percent.’” (Noam Scheiber, What a $15 Minimum Wage Would Mean for Your City) If the current national minimum wage is $7.25 and it is raised to $15.00 that would be a nearly 107 percent increase in minimum

More about Raising Minimum Wage Increase In The United States

Open Document