The minimum wage has been a large debate in the past and is becoming an even more prominently discussed subject more recently. Some call for the raise to be ten dollars while other want the minimum wage to be up to fifteen dollars. Recent presidential candidates have even stated their opinions on the issue. Bernie Sanders believes there should be a national rate of fifteen dollars per hour. Hilary Clinton believes in a twelve dollar minimum wage. Donald Trump believes it should increase but wants to leave wages in the hands of the state governments. Extensive research has been done to discover the pros and cons of raising the minimum wage. Economic stimulus is just one of many pros to increasing the minimum wage. When people have more money,
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Layoffs are one concern of economists and those in opposition of the raise in minimum wage. They believe that if businesses are tight on money and cannot afford to pay the same number of employees that some employees will get laid off and will find themselves unemployed. Also, a higher shift in prices is a concern. Businesses may feel the need to raise prices to compensate for the extra money they must pay their workers. Halvorson worries that this could cause a “ripple effect” and make the cost of living higher. It has been proposed that this could eventually lead to another plea to increase the minimum wage once again. Competition would increase with the increase in wages and may bring in more young workers. It also may result in employers becoming unable to hire as many workers. This may cause another type of “ripple effect” that leads companies to take actions like outsourcing their jobs to different countries where they can pay workers much less. There is also an argument that the raise in wages would be unequal considering that each state already has its own set minimum wage. Not only that, but Susanna Kim uses a quote to draw attention to wage hierarchies. Wage hierarchies “have been rigid for a long period of time “. The basis of this ideal is that if someone who already works a job that pays say fifteen dollars an hour, with the minimum
Layoffs are one concern of economists and those in opposition of the raise in minimum wage. They believe that if businesses are tight on money and cannot afford to pay the same number of employees that some employees will get laid off and will find themselves unemployed. Also, a higher shift in prices is a concern. Businesses may feel the need to raise prices to compensate for the extra money they must pay their workers. Halvorson worries that this could cause a “ripple effect” and make the cost of living higher. It has been proposed that this could eventually lead to another plea to increase the minimum wage once again. Competition would increase with the increase in wages and may bring in more young workers. It also may result in employers becoming unable to hire as many workers. This may cause another type of “ripple effect” that leads companies to take actions like outsourcing their jobs to different countries where they can pay workers much less. There is also an argument that the raise in wages would be unequal considering that each state already has its own set minimum wage. Not only that, but Susanna Kim uses a quote to draw attention to wage hierarchies. Wage hierarchies “have been rigid for a long period of time “. The basis of this ideal is that if someone who already works a job that pays say fifteen dollars an hour, with the minimum