The Pros And Cons Of Increasing Minimum Wage

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If the minimum wage increases, it doesn’t necessarily mean that the economy will get better or our standards of living will be better. If wages go up, then the standard of living will also increase. There are statistics that have proven why the raise of the minimum wage will actually cause more issues. As the minimum wage increases, the unemployment rate will increase. As well, there is a huge potential of causing small business to collapse due to higher wages and being unable to afford it. Machines would replace humans. The impact would be massive to the economy. This is why the minimum wage should not increase. The raise of the minimum wage will increase the unemployment rate. The unemployment rate will increase because low skilled workers…show more content…
The idea may sound great. The more money the more people consume. Yes, that is true if we build more jobs, But increasing the minimum wage could lead to another economic problem. If Congress raises the minimum wage to $15 an hour, the employer would be paying $18.61 an hour. The employer would be paying $15 for the minimum wage, $0.19 for unemployment insurance taxes, $1.15 in payroll taxes, and $2.21 per hour in Obamacare penalties. Even though, $15 an hour is a huge amount of money that unskilled workers would be getting paid. Many politicians support this idea. Many political believe that by raising the minimum wage we are saving the poor people. It would reduce welfare, Medicaid, and Medicare. The country would have more money and the GDP would increase. However, when the price of a product increases then people buy less of it. There wouldn’t be much demand for the product. If that was the case it would close down business or it could make them go overseas where labor is cheaper. The United States used to have many factories where millions of workers were employed. Once they closed down or moved overseas our economy crashed. They couldn’t afford the minimum wage here, but if you go to a different country, labor is much cheaper. If it costs $30 per sweater to be made in The United States and overseas, it would cost $5 per sweater. That is a huge difference. That difference could happen again if our minimum wage goes up to $15 an
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