What Would Happen to the Economy If Minimum Wage Was Raised? Lately there has been a big debate over the topic of minimum wage. A majority of the country thinks that it should be raised all the way up to fifteen dollars an hour. There are some states, like California, that have already made the minimum wage in their state at or close to ten dollars. Why so much just for minimum wage? Well, a lot of people have come to the conclusion that by doing so, it will put many families all over the country in better money situations and potentially keep them out of dept. What they aren’t realizing are the negative outcomes that can come from this; such as inflation or even higher unemployment rates. Is this really something that our country wants to risk getting into? The United States of America was built off of a foundation of capitalism, an economic system in which all or most of the factors of production and distribution are privately ran for a profit (Nickels, 2013). Because of our so called capitalistic economy, we should be considered as a free market economy; unfortunately that is not the case. Here in the U.S. our government has control over certain things in the business world, one of those being the overall set …show more content…
Inflation is a rise in prices of goods and services (Nickels, 2013). Most people assume that just because everyone is getting paid more, everyone will be able to afford things all of a sudden; taking a look at the big picture predicts otherwise. While companies would need to use more of their revenue, the total amount of money that a business makes, to pay employees they would be losing a great deal of money. To make sure that they do not end up suffering from a loss, which is when a business’s expenses are more than what they take in, it is highly likely that they will choose to raise their