The Cost Of Minimum Wage Essay

1023 Words Feb 19th, 2016 null Page
The federal minimum wage is 7 dollars and 25 cents (“Minimum Wage”). The first minimum wage law was enacted in 1894 in New Zealand (“What is the History of the Minimum Wage”). Minimum wage rates differ between the states and are controlled within the individual state 's (“Minimum Wage”). Over time these rates have increased, but not dramatically. People argue they cannot live comfortably with minimum wages so low. On the other hand, raising wages will hurt labor costs, pricing, non-profit organizations, and international competition (Root). Generally, it will affect areas around the country differently.While some believe the economy will benefit from increasing minimum wage, research has shown it would negatively affect product value, industry costs, global competition and charities.

Most democrats are in favor of increasing the minimum wage. The major problem with this debate is that it has been done before and the results were not beneficial to most. This debate has been going on for the past years and if this law is passed, it will affect everyone around the country. A majority of small businesses will either go out business or cut part of their staff because of the labor costs. As for non-profit organizations, some will fail because they will be forced to spend more for labor than to keep their current level of services. For those in international competition, it will be more difficult for them to compete with foreign manufactures once prices increase (Root). The…

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