Minimum Wage Vs. Maintain Wage Essay

843 Words Apr 23rd, 2016 4 Pages
Raise Minimum Wage vs. Maintain Minimum Wage All across the country, workers are rallying together in order to raise their state’s minimum wage from as low as $7.25 per hour to $15.00 per hour. While many states already have a minimum wage well above the national requirement of $7.25 per hour, many Americans are claiming this is not enough to live off of. Also, many go as far as to claim that an increased minimum wage would actually boost the economy through the law of supply and demand which states that an increase in the amount of money in the economy will, ultimately, increase the amount of output of the economy. While both of these may seem logical in theory, they couldn’t be further from reality. An increase in minimum wage would lead to an increased unemployment rate, an increase in inflation, and an overall decrease in the productivity of the workforce. One of the major arguments that minimum wage workers have is that they believe an increase in their incomes will, ultimately, lead to an increase in the amount of money they can spend on themselves. Technically, this is true; however, once the market corrects itself for this increase in money circulating, prices will rise back to equilibrium. For example, in 2015, Seattle raised its minimum wage from $9.32 per hour to $15.00 per hour. According to Victor Luckerson of Time Magazine, some restaurants “have raised prices from 4 to 21%.” This is an astonishing number; this adds over $2 on a $10 meal. Likewise,…

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