When looking at both sides of either raising or not raising the minimum wage there are consequences in both. I will discuss in further detail the effect it would have on our us. When looking into the effect on raising the minimum wage I read that raising the minimum wage would increase poverty. A study from the Federal Reserve Bank of Cleveland found that although low-income workers see wage increases when the minimum wage is raised; hours and employment decline, which in turn also declines the earned income and minimum wages increase the proportion of families that are poor or near-poor. Then this also prompts another factor that higher wages will increase prices on products. And if we did raise the wage: yes we are bringing home more money
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Right now our world is moving into a technology based world, and when the minimum wage increases there may be an increase in automation. If we have more automation that leads to more employees being laid off because if the minimum wage increases some companies may not be able to afford to pay a higher minimum wage for their employees, if they have a lot, so automation is cheaper. Oxford University researchers Carl Benedikt Frey, PhD, and Michael A. Osborne, DPhil, stated in a 2013 study that "robots are already performing many simple service tasks such as vacuuming, mopping, lawn mowing, and gutter cleaning.” Many restaurant chains and Sam’s Club are already in preparations of working to look for ingenious ways to take humans out of the picture, threatening workers in an industry. Right now the United States has a 4.4% rate of unemployment. The Congressional Budget Office had projected that if the federal minimum wage increased from $7.25 to $10.10 that would result in 500,000 jobs lost or even 1 million jobs. In 2014, Steve H. Hanke, PhD, Professor of Applied Economics at Johns Hopkins University, surveyed the 21 European Union (EU) countries that have a minimum wage. They found an average unemployment rate of 11.8%; which is about a third higher than the 7.9% average unemployment rate in the seven EU countries that have no minimum
Right now our world is moving into a technology based world, and when the minimum wage increases there may be an increase in automation. If we have more automation that leads to more employees being laid off because if the minimum wage increases some companies may not be able to afford to pay a higher minimum wage for their employees, if they have a lot, so automation is cheaper. Oxford University researchers Carl Benedikt Frey, PhD, and Michael A. Osborne, DPhil, stated in a 2013 study that "robots are already performing many simple service tasks such as vacuuming, mopping, lawn mowing, and gutter cleaning.” Many restaurant chains and Sam’s Club are already in preparations of working to look for ingenious ways to take humans out of the picture, threatening workers in an industry. Right now the United States has a 4.4% rate of unemployment. The Congressional Budget Office had projected that if the federal minimum wage increased from $7.25 to $10.10 that would result in 500,000 jobs lost or even 1 million jobs. In 2014, Steve H. Hanke, PhD, Professor of Applied Economics at Johns Hopkins University, surveyed the 21 European Union (EU) countries that have a minimum wage. They found an average unemployment rate of 11.8%; which is about a third higher than the 7.9% average unemployment rate in the seven EU countries that have no minimum