The Impact Of Raising The Minimum Wage

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In the reading of Minimum wage and magical thinking he discusses that raising the minimum wage would have a negative impact and would actually hurt those that it is supposed to help and I would agree. Raising the minimum wage would cause inflation to rise, thus basically canceling out what it was intended to do and making the US dollar worth less. Secondly, minimum wage increase would cause the price of goods to rise and then less people will be buying so, then you are paying employees more and making less revenue. Lastly, this would hurt the very people that raising the minimum wage is intended to help because the number of jobs that are entry level or low skilled will drop and then people who were making a 7.25 minimum wage will now be …show more content…
If the costs of goods rise the amount of sales will drop which is simple economics this would bankrupt businesses as a result of being required to pay their employees more, but are making less money. The idea behind raising minimum wage is to make it so more people aren 't in poverty, but raising the minimum wage will cause businesses to close putting people in poverty or deeper poverty than they are already experiencing. Also raising the minimum wage will take away the drive to do better and work for what you want to be. If they raise it to the amount of 15 an hour like some are calling for that is what a police officer or a paramedic makes currently why would someone want to put their life on the line when they could flip burgers and make the same money? The types of jobs that pay minimum wage are not meant to be permanent career jobs they are meant to be jobs for school kids to make enough money to pay bills and survive …show more content…
If the amount of money people make at the lowest level begins to increase, so will the mid and high level paying jobs will also have to be paid more creating inflation. Inflation is not something that we need more of as it will make the US dollar weaker against other currency and what a dollar is worth now after raising minimum wage it will only be worth a fraction of what it is now. Inflating the dollar will not help the situation of poverty because then people will be making more money, but that money will not be worth as much. When the cost finally takes over and businesses close instead of making 7.25 minimum wage or whatever they raise it to they will be earning nothing. By trying to fix our problem there is a thin line between what will help and what could end up doing more harm than good and even possibly pushing us into another recession.

What some people suggest is drastically increasing the minimum wage something that I do not believe would help, but in the end hurt citizens in poverty. Instead of trying so hard to increase minimum wage people should be trying to better themselves into jobs that don 't pay minimum wage. Also, raising the minimum wage will cause people to have less drive to do better and find something more important than an entry level

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