Minimum Wage Effects

1652 Words4 Pages

As stated in the introduction the question in which this data presented in the literature review is answering is what are the economic effects of raising the minimum wage on American citizens. Through researching by a content analysis method I was able to investigate detrimental aspects to the American economy if the minimum wage is increased. Multiple plans of action have been proposed that focused on the minimum wage being increased. The aspects evaluated in this paper that would be affected vastly by an altering include high school completion, the current work force, and effect on teenage employment.


An assortment of economists and politicians have developed strategies on reviving the American economy through amending the minimum wage. …show more content…

In the year 2011a source was published by the Associated Press, one of the largest and most trusted sources of independent newsgathering, constructed a video that examined the effects a wage hike in San Francisco would have on all the parties directly involved. The video contains testaments from an employee, a business owner, and a public official all stating their opinion on San Francisco's wage hike to $10.24 an hour, which road on the coattails of Obama’s $15 minimum wage plan. The employee supported the hikes because the extra spending money and keep up with the high cost of living in the area. Any person would react in this manner if the knew they were receiving more money. The owner refutes the increase of the minimum wage due to the excess expenditures he will have to account for now. The politician stated how the increase had potential to spur economic growth in the city. The owner of the local business was the reaction that was of a great deal of importance. The owner was flustered by the hike and stated that it would be a huge financial burden on his business. He said that he would have to cut employees and their hours. This would result in employees not earning as much income as they expected and hindering the people that the bill aimed to help. Veterans of the fast food industry feel negatively about the hikes in concurrence. In a study by the Assistant Editor for Editorial Partnerships at Guardian US, evaluates the success of the $15 dollar minimum wage movement in the past few years and how they have achieved wage hikes in major cities. Like the video from AP the reactions vary dependent on the personnel and how the hikes will affect them in different ways but the managers feared the worst. In the Guardian article the owner of a startup pleaded, “ At this point, as a startup, it would put me out of business. It would also hurt my

Open Document