Consequences Of Raising The Minimum Wage Essay

2029 Words Nov 29th, 2016 9 Pages
Damaging Consequences of Raising the Minimum Wage Who wants to earn more money for performing the same work? Most of the working population would say “sign me up”. An often-debated way to accomplish this would be for the federal government to raise minimum wage. While on the surface, this simple idea may sound like a win-win proposition; but when logic and simple economics are applied, the result is a lose-lose proposition. Raising the federal minimum wage can actually have adverse effects on the economy and the portion of the work force that it is intended to help. According to Allan Meltzer, a professor of political economy at Carnegie Mellon University, “the argument against the minimum wage lies in good economics and common sense” (Meltzer, 2016). Why is there a federal minimum wage? The federal minimum wage and a regulated number of hours during a work week came into existence through the Fair Labor Standards Act of 1938. This law was born out of the New Deal, a succession of socially liberal laws signed by President Franklin D. Roosevelt following the Great Depression. From the beginning, the idea of a federal minimum wage was not universally excepted. The Fair Labor Standards Act along with many other New Deal era laws came about during a time when progressives in the federal government were enacting socially progressive laws in our country. The idea of the federal government reaching in the private sector and forcing companies to pay a minimum wage and a…

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