Should The Minimum Wage Be Raised
What is the minimum wage? What is the economic effect of raising the minimum wage? Does increasing the minimum wages help poor people to survive their life? Does increasing the minimum wage increase unemployment? Many people can think back and remember what it was like to put in an application for that first job and be presented with a position. Taking that position represents adulthood and is a very exciting time for a young person. All first jobs normally start with a minimum wage. Minimum wage is the minimum an employer has to pay an inexpert worker based on the rules set forth by the Fair Labor Standards Act (FLSA) that was originally established in 1938. Raising the minimum wage is one of the big issues that the government of the United States is facing.
The increasing of the minimum wage is crucial to raise living level of the poor people, but it has a lot of negative effects on the economy. Los Angeles city is facing this issue when the council of Los Angeles declared the raise of the minimum wage up to $15 an hour by 2020.
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They said that they are not able to raise their prices to afford this and cover their expenses. Also, they state that they have reduce the amount of the minimum wage employees or reduce their work hours which will effect both the owners and employees negatively. Furthermore, raising the minimum wage will effect economic negatively. The economists concluded that as a result of the wage increase, "many prices will increase, including those that lower-income households commonly face; wages will raise for those in minimum wage jobs that remain employed; employment opportunities for those at the bottom of the skills ladder will be diminished and employment growth will