Raising The Minimum Wage Essay

With the raise of the minimum wage, our employees would take one of the larger hits. The raise in the minimum wage would have a drastic affect on our everyday employees. If payroll is significantly increased, then to meet the bottom line, the employers must start hiring or even cut jobs. A recent study from economists at the London school of Economics and the central bank of Turkey found higher minimum wages increased unemployment. (Riggs) The larger amount of young workers would be affected the most by the increase of minimum wage. Businesses would have to limit their employees. When looking at who to hire, businesses will typically go with someone older and more experienced rather than a young adult or teenager. The bulk of the research on

When looking at the effect raising the minimum wage would have on the economy is astonishing. The drastic effect the economy would take makes it seem like the obvious choice is to not raise the minimum wage. The Center of American Progress’s massive economic growth plan calls for setting the minimum at one half the average wage for production and non-supervisory workers. (Mendoza) Hanquer proposes raising the minimum wage to fifteen dollars is more than doubling the federal minimum. (Hanquer) It is never a good sign when the Major Changes There are few things we can do in today’s world without there being a change. When it comes to raising the minimum wage to $15, there are many major changes that will take place. The evidence we have on the effects of minimum wage increases are limited to a historical period where statutory minimum wages have ranged between 35% and 50% of the national median wage. The higher costs of production are, the higher prices are. The higher prices are, the smaller the quantities of goods and services demanded and the number of workers employed in producing them. A 2013 article by the Federal Reserve Bank of Chicago stated that if the minimum wage is increased, fast food restaurants would pass on almost 100% of their increased labor costs on to consumers and that other firms may do the same. This would mean that nothing would actually change. As soon as the minimum wage