Essay on Raising The Minimum Wage Should Be Good For Our Economy

773 Words Aug 26th, 2015 4 Pages
Raising the minimum wage would be good for our economy. A higher minimum wage not only increases workers’ incomes—which is desperately needed to boost demand and jump start the economy—but it also reduces turnover, decreases the costs that low-road employers place on taxpayers, and drives businesses toward a high-road, high-human-capital model.
The minimum wage is worth astoundingly less today than it was in the late 1960s (Vinik) due to inflation. Despite this, Senate voted against the most recent federal minimum wage increases. The bill would have increased the federal minimum wage from $7.25 an hour to $10.10 an hour over 30 months. This increase would have rose the wages of approximately 28 million Americans (Lowery). Republican Senator Dan Coats (R-Ind) said “Raising the minimum wage creates winners and losers -- it will raise the wages of some but result in job losses for many low-income workers. The true problem plaguing impoverished Americans is not low wage rates but a lack of good job opportunities.”
The evidence is clear, however: Raising the minimum wage does not have the harmful effects that critics claim.
A substantial bulk of academic research finds that raising the minimum wage does not result in job losses, even during periods when the unemployment rate is high. Critics of the minimum wage, however, often hold on to the claim that raising the minimum wage will lead to job losses and ultimately hurt the overall economy, exacerbating the problem of high…

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