The minimum wage exists in order to set a living standard and to ensure somewhat of a gaurantee of survival in living in the U.S. The current federal minimum wage is currently set as $7.25 and the state of California at $10.50 as of Jan.1 2017. Although the minimum wages has continually been increasing since $0.25 in 1938 during the Great Depression, proponents of organized labor and those in poverty remain persistant on increasing the minimum wage to $15. However, increasing minimum wage would discourage the low-skilled workers to sharpen their aptitude and reach full competence to work in a more skilled workforce. The idea of easily attaining more money for inconsiderable work would only help raise the standard of living, and lower the standard of the economy and productivity as a whole. The government should not be in control, but rather have the free market dictate how much a person should be getting paid by the quality of their work. …show more content…
Most employers believe that people with the lowest skills cannot justify the $15 minimum wage, and therefore cut hours or jobs to balance out the increase in wages. A survey taken last year showed that a 10% increase would increase unemployment by 3% in SRAS and even greater increase in unemployment in LRAS. Because most employers, especially those who own small businesses do not consider the basic skills to be worth $15, they may prefer to invest in machinery to replace people to complete menial tasks such as cleaning and manufacturing. An article from Washington Post stated as proponents of increased minimum wage increases, many restraunts are already looking for ways to remove people from jobs, threatening increased unemployment