Economic Effects On Minimum Wage

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The federal minimum wage has been an ongoing debated topic since first established in America. Within the federal minimum wage bill, there are many different aspects, or sides, to look upon when arguing about the amount. Economic activity is negatively affected by the increase in minimum wage. One aspect afflicted within economic activity is poverty rate. The poverty rate is affected by the minimum wage through the welfare spending either increasing or decreasing or the unemployment levels rising or falling. Other sides of economic activity that a minimum wage increase would affect is the poor, the crime rate, and employee affiliations. In the same manner, an increase in minimum wage would be useless due to the inflation rate. The cost of living and cost of goods and services is different in everywhere. The amount paid for minimum wage would also have little effect on inequality problems in the workforce. The workforce would, also, become smaller. Citizens would be influenced negatively by an increase …show more content…

People argue to increase the minimum wage in order for them to have enough money for food, housing, and everyday essentials. Minimum wage is not intended for a single parent nor a single person to live off of as the only income. The actual reason of minimum wage being established was to ensure fair wages for work. These wages were set for people who could not obtain a higher paying job due to their skills. These people were usually ones with low intellectual capabilities, young people, or high schoolers. Most of the workers earning minimum wage now are young adults who only work part-time. The older workers earning minimum wage are, also, usually work part-time. They are working for additional money along with their salary from a full-time job. Along these lines, one is able to use minimum wage to aide with living expenses but not live solely off of that amount of

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