According to a document released by the Congressional Budget Office, a federal agency that provides information to Congress pertaining to budgeting and economics, “…increasing the minimum wage reduces employment in two ways. First, higher wages increase the cost to employers of producing goods and services. …Second, a minimum-wage increase raises the cost of low-wage workers relative to other inputs that employers use to produce goods and services, such as machines, technology, and more productive higher-wage workers” (Congressional Budget Office 7). This information highlights the fact that minimum wage increases hurt the very people that they are attempting to help: low-wage workers. By raising the minimum wage, companies are given the option of using machines that are just as expensive but much more efficient. Furthermore, the Congressional proposed “…implementing the $10.10 option would reduce employment by roughly 500,000 workers…” and “Under the $9.00 option, employment would decline by about 100,000 workers…” (Congressional Budget Office 12). Again, as was previously stated, the jobs lost would mostly be those of the low-wage workers whom the very raise was attempting to help in the first
According to a document released by the Congressional Budget Office, a federal agency that provides information to Congress pertaining to budgeting and economics, “…increasing the minimum wage reduces employment in two ways. First, higher wages increase the cost to employers of producing goods and services. …Second, a minimum-wage increase raises the cost of low-wage workers relative to other inputs that employers use to produce goods and services, such as machines, technology, and more productive higher-wage workers” (Congressional Budget Office 7). This information highlights the fact that minimum wage increases hurt the very people that they are attempting to help: low-wage workers. By raising the minimum wage, companies are given the option of using machines that are just as expensive but much more efficient. Furthermore, the Congressional proposed “…implementing the $10.10 option would reduce employment by roughly 500,000 workers…” and “Under the $9.00 option, employment would decline by about 100,000 workers…” (Congressional Budget Office 12). Again, as was previously stated, the jobs lost would mostly be those of the low-wage workers whom the very raise was attempting to help in the first