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Raising The Minimum Wage Essay

750 Words3 Pages

Rising the Minimum Wage
A big question that has troubled many economists over the years is regarding the flexibility of the minimum wage. Many debates are in question of what will happen if minimum wage rises. Both sides urge with positives and negatives on what impact it will have on the economy, and who will benefit. This paper will try to explore the previous said, and the consequences of raising minimum wage.
Raising minimum wage is a complex area of study. Back in the 1990 economist wisdom was that increasing minimum wage would destroy jobs, but since 1995 new studies have discovered different results. According to Krueger the chief economist of the United States, stated, “much of the existing literature was flawed”. (Maniing). It seems …show more content…

That evaluate what raising minimum wages would cause. There are many factors to look at when talking about minimum wage. Another aspect that complicates measuring the effect on raising minimum wage has to do with the hourly inflation of adjusted wages; since the 1970’s it has only increased by .2 percent per year. (Dunn) if we compare number to how much they want to increase it in 2018 almost at a ten fold no study has measured that effect on society. Only assumptions could be made and economist makes a lot of those. Not until a couple of years will the results as many nations is increasing minimum wage starting this …show more content…

As prices for goods increase to some degree. (Manning) what good will a increase in wage do you if consumers will find them self’s spending that extra money increase prices again bring it to an equilibrium consumers will still end up in the same boat or leave them much worse off. A recent study done in Seattle on raising the minimum wage effected the workers instead of helping them as employers reduced their hours and delayed new hiring in that area.(Manning)you cant really conclude this will happen to the nation as a whole since the study is so narrow. The study is far from its final

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