The federal minimum wage established in the United States in 2017 is set at $7.25 an hour. By law this means that every employee must be paid this amount from their employer at the very least, even though states have the right to raise the wage too. This wage is set to maintain a strong economy and also for people to make money and keep their jobs. Raising the wage could have countless negative effects on the economy as well as the working class, which is the exact opposite reason for it being enacted. Raising the federal minimum wage would specifically hurt small businesses and younger workers. Small businesses will likely be shut down as a result of a minimum wage increase. A study conducted in a 2013 Gallop poll states that, “60% of small business owners say that raising the minimum wage will hurt most small-business owners”(“Should We Raise”). This change will create many problems for the employers. …show more content…
According to the Pew Research Center, “16 to 24-year-olds make up 50.4% of minimum wage earners” (“Should the Federal”). Raising the wage could take away incentive for young adults to get a better education. If one can get a high paying job without a high education, there isn’t that much of a point of going through tedious, vigourous, and expensive schooling. Another effect is that competition between workers is likely going to increase. If older people start trying to get more minimum wage jobs because the wages are higher, younger workers are going to have a hard time being hired. It will be harder for them because they're not as experienced as the older workers. The increase would result in between 500,000 and one million jobs being lost (“Should We Raise”). This extreme amount of jobs lost makes it even more difficult for teens and young adults to find a job in the first place. The younger workers may even be shut out of the workforce if competition increases and so many jobs are