Argumentative Essay: Increasing The Minimum Wage

The opposition to increasing the minimum wage claims that it will negatively affect the economy and it is not the most efficient means of combating poverty. Proponents of this belief say that it would result in job loss, it would hurt low-skilled workers, it would have little effect on reducing poverty, and it may result in higher prices for consumers. Several studies by Richard Freeman, Mark Wilson of the CATO Institute, and David Neumark provide conclusive evidence for the aforementioned reasons to not increase the minimum wage. Additionally, they provide insight as to why there are studies that produce empirical data in support of increasing the minimum wage. In multiple economic letters, David Neumark revealed that reducing poverty via minimum wages is ineffective, …show more content…
Going further, it will increase the limitations on their employment because they belong to the least-skilled group of workers which are undesirable for employers (Wilson 9). Poverty is not solved by increasing minimum wages. Milton Friedman wrote, “In fact, insofar as minimum wage laws have any effect at all, their effect is clearly to increase poverty” (Friedman 148). Advocates of the minimum wage and their supporters want to believe that the government can legislate a minimum wage and poverty will be solved. Somehow, they believe, the money will appear out of thin air and it will have no negative effects. However, this is not the case. The minimum wage is a fallacy because there will always be negative effects. In fact, there are overwhelmingly negative effects even if there are positive effects. In conclusion, increasing the minimum wage is not a good idea for many various reasons. Doing so will not reduce poverty, and in fact unintentionally harm those living in poverty. Additionally, it will cause employment to decrease, and prices to increase which will harm the