The minimum wage in the United States was re-established after the Great Depression in 1938 to .25$ an hour. The federal minimum wage now is $7.25 an hour. However, 29 states have a minimum wage greater than the federal minimum wage (Minimum Wage Laws). President Obama in his State of the Union speech, urged congress to raise the minimum wage to $10.10 an hour. Obama and his cabinet believe such a bill would support the U.S. economic and people in the lower ladder of society. He posed a great challenge for congress with such a difficult bill proposal. However, Increasing minimum wage is quite controversial within congress and even the American population. Lee Dwight in his journal deducts “they [supporters of a minimum wage increase] remain convinced that having a minimum wage and increasing it occasionally is the moral thing to do.” Later, he points out this thinking is not logical. This proposed bill is not going to benefit American citizens because it infringes on growing business, increases poverty, and hurt regular …show more content…
One large cost of increasing federal minimum wage is it will cause higher prices for consumers and an increase in all goods. This will increase the cost of living of all people, including families receiving minimum wage in poverty and families throughout all social classes. In the 2012 Wilson Review more than 20 minimum wage studies found that a 10% increase in the U.S. minimum wage would cause a raise in food prices by about 4%. Also according to The CATO Institute they found that restaurant prices increase in proportion to an increase in minimum wages. Michael Reich and Ken Jacobs in their article in the U.C. Berkeley Labor center say “Minimum wage increases do lead to small price increases, mainly in restaurants, which are intensive users of low-paid workers.” Increasing minimum wage will put burdens on everyone to have to spend more money for simple goods and