The Federal Minimum Wage Increase Income For The Poorest Workers Without The Danger Of Creating More Unemployment

1011 Words Nov 17th, 2015 null Page
“An increase in the federal minimum wage will boost income for the poorest workers without the danger of creating more unemployment.” Is this statement made by president Barack Obama in September 2014 necessarily true? As of now, the federal minimum wage is $7.25. However, that could change very soon. A raise in the federal minimum wage would affect everyone in a negative way by hurting small businesses, creating unemployment and causing inflation. Small businesses drive the United States economy by providing jobs for over half the nation’s private workforce. There is a demand for a higher minimum wage because of big businesses not paying their employees enough when they can more than likely able to afford to. However, many people don’t take into consideration the small businesses who already pay above minimum wage to their workers. Ucilia Wang asked many small business owners how a 15 dollar wage would affect them. Of those answers, there was a noticable trend. A majority of the owners she conversed with pay their employees more than minimum wage requires. If the wage increases, it will destroy their businesses. First of all, the wage raise will cause a ripple effect. Wages and prices will increase, causing employees to ask for more money, which the employers cannot afford. All in all, it will affect the owners the most, and the outcome will be devastating. McGinn, owner of Sweet Jane’s frozen Desserts, stated “At this point, at start up, it would put me out of business”…

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