Analysis Of Increasing The Minimum Wage

On the other hand, there are other individuals saying that minimum wage should be increased. They say that the minimum wage should be increased because it will benefit the economy in the United States and they present specific evidence to support their arguments. For example, in the article “Would Increasing the Minimum Wage Create Jobs?” by Jordan Weissmann, the author stated that raising minimum wage will increase the employment rate in the United States and increase consumer spending. The author said that these factors are the key for the growth and development of our economy, and that they should be implemented in our society. Also another author said that “raising the minimum wage is part of the social contract between the employer and

We are often told that increasing the minimum wage will destroy jobs by making workers more expensive to hire. However there is quantitative data showing that increasing minimum wage will have a positive effect in the employment rate. Wessmann quotes The Economic Policy Institute releasing a report estimating “that raising the federal minimum wage to $10.10 an hour, up from $7.25 today, would add an additional 85,000 jobs to the economy” (Would Increasing the Minimum Wage Create Jobs? n.page). There are a couple explanations making a connection between increasing the minimum wage will create job opportunities in the united states. The key is that “poor and middle class families tend to spend more of their income than the wealthy, since they 're often struggling to meet basic needs” (Jordan Weissmann n.pag). So by taking money from businesses and giving it to their worst paid employees, raising the minimum wage might, in theory, increase consumer spending,which in turn boosts the economy and creates more jobs opportunities. According to the Economic Policy Institute, raising the minimum wage to $10.10 an hour “should increase wages by $35 billion and boost economic activity by $22 billion—which by their account is enough to create those 85,000 jobs” (Jordan Weissmann

The White House claimed “that the proposed wage hike would not reduce employment, referring to studies that ‘built on earlier research and confirmed that higher wages do not reduce employment”’(Jordan Weissmann n.pag). A new working paper from the National Bureau of Economic Research finds that significant minimum wage increases can hurt the very people they are intended to help. The author Charles Hughes, find that “significant minimum wage increases can negatively affect employment, average income, and the economic mobility of low-skilled workers (n.pag). The author also found that a significant ‘minimum wage increases reduced the employment, average income, and income growth of low-skilled workers over short and medium-run time horizons”’(n.pag). Also, The Congressional Budget Office recently weighed in, estimating that “a three year phase in of a $10.10 federal minimum wage option would reduce total employment by about 500,000 workers by the time it was fully implemented” Charles Hughes