Raising The Minimum Wage? Essay

1320 Words Dec 13th, 2016 6 Pages
There are plenty of topics in politics. However, there is one topic that is the most vital. Economically, it affects everyone 's lifestyle. Minimum wage is one of the most important subtopics in economics. It is also one of the hardest topics to judge. Whether to raise the minimum wage or not is always questioned. Raising the minimum wage is beneficial for decreasing the gap between the rich and the poor, and increasing the consumers purchasing power. However, there are also consequences when it 's increased. Raising the minimum wage increases unemployment, decreasing the productivity of businesses, and increases inflation, which can possibly lead to hyperinflation.

Minimum wage increases one’s power to afford goods and services. This was the case in the 1900’s. Before the Great Depression hit, production had skyrocketed, however, minimum wage stayed still. Once the Great Depression occurred, there was a surplus of goods that was left unsold. When there is a surplus of goods that are unsold, prices will drop thus pleasing the consumers. Therefore, there were not as many strikes demanding for wages to increase because the economy was running well. Increasing the consumer’s purchasing power can keep the economy flowing the way it should. The consumer can buy goods and services, and as a result, the businesses can reinvest that money to increase production

Throughout history, the rich keep getting richer and the poor keep getting poorer. There is only one thing that…

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