Minimum wage is the lowest amount that is allowed to be paid by employers under law or an agreement. In this case, it is enforced by the federal government. The Federal minimum wage has been increased by Congress twenty-two times since it was introduced in 1938. Its most recent change was in 2009 when it was increased from $6.55 to $7.25 an hour. Millions of workers live off of minimum wage, and some complain that it is not enough to live on. Others say that businesses may have to lay off workers if minimum wage is increased, and that it could negatively affect low-income communities particularly (BGE). One may ask, “Should the Minimum wage be increased to $12.50 an hour?” The minimum wage should not be increased to $12.50 an hour because it will increase prices for consumers, jobs will be lost, and the crime rate will increase. …show more content…
According to George Reisman, PhD, Professor Emeritus of Economics at Pepperdine University, “The higher wages are, the higher costs of production are. 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 produced them.” (A.D. #1). If the minimum wage is increased, businesses will have to pay their workers more, forcing them to raise prices of products they sell, therefore making it more expensive for consumers to buy something. This is also shown in Document E, “12 bucks for a crappy lil’ hamburger?!” (A.B Branco, Doc E). This image shows that if you increase the wages of a worker, it could dramatically increase the price of goods of businesses, making it more expensive for