Perhaps the most important duty of our countries lawmakers is designing rules and regulations to grow the economy. Minimum wage is a hot topic, and an increase raises a lot of red flags because if done incorrectly it could devastate the economy. If implemented properly, raising the minimum wage in certain areas could stimulate the economy and bring the lower class out of poverty. To implement these changes properly there are certain aspects that need to be done well. First, the minimum wage needs to take inflation into account. Too many areas have remained stagnant, and this is not acceptable as inflation is degrading workers wages over time. The minimum wage also needs to be based on the company in order to protect small businesses. Companies with a certain threshold of workers can afford to pay higher minimum wages, while smaller companies will be protected in order for them to stay in business. The wage also needs to be based off of the state or even the municipality. In order to stay above poverty certain people need varying wages to live in different parts of the country.
Inflation
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In reality, if it is raised properly than it will actually stimulate the economy. A market such as video games would be able to benefit from an increase in minimum wage. The market for Playstations would increase drastically, because a rich person is not very likely to buy another playstation, while more being being able to afford such luxuries would increase their sales. More people would be able to afford to buy movie tickets as well. It would help stifle obesity in our country as people would be able to afford healthier food. Even though each state would need to find their own appropriate minimum wage, the extra money would stimulate the economy. The Institute of Research on Labor and Employment did research specifically for California if the minimum wage was as high as