Raising Minimum Wage Essay

1505 Words 7 Pages
The United States has had a federal minimum wage since the year 1912. Massachusetts was the first state to institute a minimum wage, with eight more states following in 1913. At this time, the minimum was unbelievably low by today’s inflated standards: a measly $0.25. The cost of life has caused the minimum wage to increase over the years seven dollars, bringing it now to $7.25. President Obama has been pushing to raise the minimum wage to $10.10 an hour, but doing so would increase poverty and unemployment, and cause small business and fast food industries to suffer a huge decline in consumers. More money is not always the answer; it can sometimes make the predicament worse.
Thinking that raising the minimum wage would bring people out of poverty and eliminate it as a whole is a common opinion. The Americans who are receiving minimum wage are on average 35 years of age. Most of these workers have children to support (Bernstein). Many workers feel as though they are barely making ends meet. After only earning $7.25 an hour, a full time employee will make around $15,000 a year; this just is
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The gap of market wage (deciding based on the job what pay should be without any law) and statutory wage (a set wage given by the government) would widen even more. Inevitably, more workers would be out of a job. Inflation would become a problem again with the increase of minimum wage (Epstein). Since the overall cost of life has not gone up, it would only upset the economy. Stores will have to raise their prices to stay open, especially the smaller local businesses. The quality and quantity of goods being produced would decrease since most people cannot afford them anymore (Epstein). Communities would become impoverished when less money is going back into it. Small businesses are known as the back bone of America. If they lessen all over, the state of America would also

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