Pros And Cons Of Minimum Wage

The Debatable Wage The American people have the common misconception of the idea regarding the minimum wage, most people want it raised as to increase the monetary value of income to improve the lives of the working poor. However, this common idea may not be the best due to the inclinations of statistics and graphs that show how the economy could be affected if the wage increased drastically or moderately. My stance on the minimum wage topic is actually to not raise it, from the look of articles, newspapers, and statistics, if we raise the minimum wage to 15 dollars per hour that could have drastic and negative change in the economy. The only reason why this topic is debatable is due to the fact that the first few years of increasing the minimum

This is not the case, raising the minimum wage does help thousands of people and will be beneficial to the economy but not right away. People think the economy will instantly become better after raising the minimum wage when in reality the economy will get worse before it gets better. The U.S economy will have to go into another small recession before it starts booming with wealth and increased employment rates. Most people have the idea that this is the instant “correct the economy” button, while in reality it might be the right idea, but it will not be perfect right away. So the general census that is supporting the rise of minimum wage needs to accept that the economy and unemployment will get worse before it gets better if it does at all. This worse that comes with the rise of minimum wage would be so detrimental to the economy that a better might not even happen, The rise of minimum wage could create a ripple effect so massive that the economy could spiral out of control so much that nothing could bring it back and fix it. What I mean by this is that the economy has been already uncontrollable, whatever the current prices are, is determined by an unwritten equation based on inflation, value, and

The equation that controls the entirety of the economy is made up of three parts, inflation, the rate at which the general level of prices for goods and services is rising, value, which is the purchasing power of currency, and efficiency, the ratio of the useful work performed compared to the work required. Changing even one of these parts will affect the entire economy in some way, specifically raising the minimum wage will change more than just one part as well. Raising the minimum wage will start by causing inflation to spike due to the increase of monetary flow throughout the country. More money being printed and created for all jobs will make it so companies will have to charge more for goods and services to accommodate the cost to employ workers at an elevated wage. A statement by Investopedia, an investment company that deals directly with people about money and the economy stated, “According to Ed Rensi, formerly of McDonald’s, a higher minimum wage would not only kill existing jobs but also result in closing a substantial number of small businesses, from 15-20%. In theory, raising the minimum wage forces business owners to raise the prices of their goods or services, thereby spurring inflation.” (Investopedia). Raising the minimum wage would not only just cause all that damage to inflation but would also subsequently lower the value of a dollar. While