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How Does The Minimum Wage Affect The Economy

706 Words3 Pages

Raising the minimum wage will ruin our economy. Look at the big picture, businesses and companies will struggle or close, poverty will increase, and the price of consumer goods will rise. There are a few things that let economists know how the economy is doing at the moment. They’re called economic indicators, and 2 of them are consumer confidence and unemployment rate. The more people that are unemployed, the less money being used to buy things which hurts the economy. When people don’t have jobs or are scared about losing their jobs, it affects the way they buy things (consumer confidence, their will to or not to spend their money) which in return, hurts the economy. If the minimum wage is increased then certain businesses won’t be able …show more content…

In places in California, they raised the wage by 36% and then the price of coffee went up by 10-20%. They did the same thing in Chicago, the wage was raised and then coffee went up in prices by 6-7% Small things that we use on a daily basis will slowly become too expensive for us to purchase. Fast food franchises and restaurants will be inclined to reduce the size of their products by 12-70% and then raising the prices. On one hand, it maybe a good thing for our cholesterol and hearts but if we’re gonna buy it, we should get the portions we pay for. In stores, healthy foods are already over priced, most families can’t afford to buy the healthy foods which means they must resort to the cheaper unhealthy foods. They can be harmful to your body, especially in large quantities. They can cause many health problems such as diabetes and obesity. Both of those are hard to deal with and both can or will stay with you for the rest of your life. Again, there's a lot of reasons of why the minimum wage shouldn’t be raised but a few of them are, businesses and companies will close or struggle, poverty will increase, and the prices of consumer goods will increase too. The economy already struggles, raising the minimum wage will set off many economic indicators. That means that our economy will start to go down

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