Minimum Wage And The Cost Of Living Essay examples

771 Words Dec 20th, 2016 4 Pages
What we earn as an income determines where we are on an economical level. Those who are fortunate enough to receive more, are often seen with more luxurious items as opposed to those who have less. Without a sufficient income, people find themselves budgeting to the extremes to make ends meet. Minimum wage is a standard by which employers come to an agreement with employees on base pay, wage is base pay that is not meant to be used to support a family and therefore should not be increased. The first argument that always arises from the debate over minimum wage increase is how it will affect the cost of living. Cost of living correlates to the minimum wage by setting prices on common goods that will still be able to come out as a profit for businesses. In order to accommodate for higher wages, items sold in stores will often encounter a markup in price. When this markup occurs, faithful customers recognize the change then proceed to either complain or just bring their business elsewhere. No one likes to pay more for everyday items with good reason. Saving money is a universal goal that simply cannot be achieved with a higher cost of living due to a raised minimum wage. The federal minimum wage is currently set at “$7.25 per hour” (Grossman) but can be set higher by the individual states. States are prohibited from lowering the minimum wage in their respected territory. An often misconception that is used to argue the validity of raising the minimum wage is that this salary…

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