Minimum Wage Pros And Cons

History of Minimum Wage

There has been much debate over the years about raising the federal minimum wage. Because of lack of action by congress, some states have taken it upon themselves to set higher minimum wages than the federal minimum wage. The minimum wage was put into place by President Franklin D. Roosevelt during the Great Depression. According to Jonathan Grossman, Historian for the U.S. Department of Labor, “On May 24, 1937, President Roosevelt sent the bill to Congress with a message that America should be able to give “all our able-bodied working men and women a fair day’s pay for a fair day’s work.” He continued: “A self-supporting and self-respecting democracy can plead no justification for the existence of child labor, no economic reason for chiseling worker’s wages or stretching workers’ hours.” However, the minimum wage is a difficult number to choose because it affects different income earning citizens in different

According to the business.com editorial staff there are pros and cons of raising the minimum wage. When looking at job growth and if it is going to grow “there is little evidence that a higher minimum wage will create more unemployment as states with a minimum wage higher that the Federal minimum have experienced faster rates of job growth than other states.” Salt Lake City, Utah’s CEO of Blast Moba Brett Bastian doesn’t agree with this evaluation. “As a business owner, my biggest expense is labor, its doubling it making it a huge burden to businesses and the cost getting pasted on to consumers. My business partner said he would have to increase his prices by 40 percent if it happens.” It is my belief that raising the minimum wage reduces employment because it puts too great a burden on the small business and that based on the principle of supply and demand, allowing the market to dictate labor costs is the best