The standard of living in America has increased over the years, making it harder for minimum wage families to afford their needs. Popular presidential candidate, Bernie Sanders appeals to the population of minimum wage workers by bringing up the idea of increasing minimum wage. Such uproars have caused heated debates throughout the nation. Certain large cities with a higher living expenses such as Los Angeles and San Francisco have already begun to take action, making minimum wage $15 per hour. Coincidentally, unemployment rates have increased in the minimum wage workplaces, leading many citizens to point their fingers at the increasing minimum wage. Contrary to the popular conservative belief that increase in minimum wage will cause job loss,
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In 1992, New Jersey planned to increase their minimum wage on fast-food employees. Prior to the increase, Card and Kreuger called many fast-food restaurants in New Jersey and Pennsylvania to gather information to conduct their study. The study tests fast-food restaurants along the border of New Jersey and Pennsylvania. Stores in Pennsylvania that were unaffected by the minimum wage had the same employment growth as the stores in New Jersey which implemented the increase of minimum wage. In addition, the stores that installed the new minimum wage also had an increase in …show more content…
Obama came to this understanding because of the persuasion of the large number of economists who proposed the idea of raising the minimum wage. The economists believe that the minimum wage workers will spend their money on additional necessities, which will then pool money into the economy. Due to the higher demand for products, more workers would be needed to support the growing businesses, resulting in job growth (“Economist’s Statement on Federal Minimum Wage”). However, approximately 17 million minimum wage workers and 11 million workers who work slightly above the minimum wage would be affected by the raise. But, the 11 million workers would experience a “spillover” effect, allowing then to also receive a higher salary. Therefore, because of the increase of minimum wage, there may be an additional $48 billion that is put into the economy due to the increase of demand. By spending more, the gross domestic product (GDP), also known as the monetary value of all the finished goods and services, would increase by 0.3% (Davis). Increasing the GDP improves the health of the economy by allowing more jobs to be created and allowing minimum wage workers to live a comfortable
In 1992, New Jersey planned to increase their minimum wage on fast-food employees. Prior to the increase, Card and Kreuger called many fast-food restaurants in New Jersey and Pennsylvania to gather information to conduct their study. The study tests fast-food restaurants along the border of New Jersey and Pennsylvania. Stores in Pennsylvania that were unaffected by the minimum wage had the same employment growth as the stores in New Jersey which implemented the increase of minimum wage. In addition, the stores that installed the new minimum wage also had an increase in …show more content…
Obama came to this understanding because of the persuasion of the large number of economists who proposed the idea of raising the minimum wage. The economists believe that the minimum wage workers will spend their money on additional necessities, which will then pool money into the economy. Due to the higher demand for products, more workers would be needed to support the growing businesses, resulting in job growth (“Economist’s Statement on Federal Minimum Wage”). However, approximately 17 million minimum wage workers and 11 million workers who work slightly above the minimum wage would be affected by the raise. But, the 11 million workers would experience a “spillover” effect, allowing then to also receive a higher salary. Therefore, because of the increase of minimum wage, there may be an additional $48 billion that is put into the economy due to the increase of demand. By spending more, the gross domestic product (GDP), also known as the monetary value of all the finished goods and services, would increase by 0.3% (Davis). Increasing the GDP improves the health of the economy by allowing more jobs to be created and allowing minimum wage workers to live a comfortable