Increase Minimum Wage Essay

As the debate over the implications of the minimum wage increase continue, the effect of the minimum wage increase on the economy and therefore society become just as varied. In terms of the impact towards the economy, there is just as much disapproval as approval towards the minimum wage increase. It has been reported that over six hundred economists have signed a letter in support of the $10.10 minimum wage. They believe that this wage increase is a much-needed stimulant to boost the earnings of low wage workers especially in times of high unemployment rates. In other words, they believe setting a standard wage, even one that is almost thirty six percent higher than the current minimum wage is necessary. Similarly, calls for minimum wage increase are based on the idea that the

The low-paid workers who need the jobs paying the current minimum wage will become unemployed. To increase the minimum wage is to only increase the burdens of small business owners who are already struggling in the current economy. To increase the minimum wage is to create inflation and further contribute to a dysfunctional economy.

And yet contrary to the answers of both sides of the argument, it has been argued that this minimum wage increase will in fact, not have much of an effect on the economy. Even though these jobs may be lost, the economy could still be healthy. According to Michael Reich, a professor of economics at UC Berkeley with a focus in labor economics, high wages will push employees to remain in their current positions and companies would not have to handle the costs of hiring and training replacements. In other words, the work force would be filled with more competent workers who in turn, could help the efficiency of businesses and the number of employees quitting also decrease. Similarly, the raising of prices due to more expensive labor costs would not cause a noticeable difference in terms of inflation. According to