Minimum Wage Pros And Cons

940 Words 4 Pages
Introduction: In this research paper I am going to be talking about minimum wage. According to our
Textbook definition of minimum wage by (Miller), “minimum wage is the lowest hourly wage rate that firms may legally pay their workers. This ensures that individuals are not being under paid by companies. I chose the topic of minimum wage for a variety of reasons. Minimum wage affects many individuals in our nation and throughout the world. It affects the majority of adolescents seeking part time jobs in high school and attending a university or community college. Since, I am currently in college who worked part time last semester I thought it would be beneficial for me to do some research on the topic of minimum wage. I am looking for how
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To reiterate what minimum wage means it is the lowest hourly wage that corporations can legally pay their employees. I came across several articles and sources that involves minimum wage and show the effect it has on the economy. A source that I found online called “Should the Federal Minimum Wage Be Increased” this source goes over all of the pros and cons of raising the minimum wage rate. According to this source, if the minimum wage rate were to rise; companies would have to lay employees off. Raising the minimum wage will mostly affect middle class citizens. The one percent of the population who is upper class will not be affected if the minimum wage rate rose. That shows that many individuals would be affected if the minimum wage were to rise. On another note, it displays that raising the minimum wage could have a positive effect on the economy. It is stated that a higher minimum wage will actually create more jobs for individuals and increase economic activity. Most individuals who are making minimum wage are working in the fast food …show more content…
First, the individuals who obtain employment will have a pay boost. For other individuals this will result in unemployment for them. This shows how some people will be better off by this and other individuals are worse off by the rising of minimum wage. This is because the companies will not be able to obtain as many employees if the rate of minimum wage were to rise. The graph below was taken from the Pearson textbook and shows the effect of raising the minimum wage. The graph demonstrates that there is a reduction in the quantity of labor demanded. This means that there was a decrease in the amount of jobs available. There would be an excess amount of workers available causing unemployment. There will be too many workers available and not enough jobs for the supply of workers. This shows a negative impact that raising the minimum wage would cause to the

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