Introduction Minimum wage and minimum wage increase is not a new topic within the United States.

Since 1938, when America enacted its first minimum wage, it has always been a hot issue on whether it is enough, and what will happen if we raise it. ne thing that has remained constant in our country howe!er, is inflation, and with inflation the minimum wage has always become too low for the minimum standard of li!ing, and has had to be increased. "oday we are facing a another one of these issues, after bama raised the minimum wage for federal positions, and the #uestion is being as$ed should minimum wage be increased, and what are the positi!e and negati!e outcomes that we can e%pect if it is increased. "he proposed minimum wage hi$e is supposed to ma$e it easier for people to li!e, raise families, and boost the economy. Many e%perts agree with this, while many disagree, and belie!e that the minimum&wage hi$e will ha!e catastrophic impacts on our economy. "hese e%perts against a minimum wage increase belie!e that increasing the minimum wage will cause small business to fail, the 'ob mar$et to flop the unemployment rate to rise, and inflation to rise out of control. "he benefits of a minimum wage increase outweigh the possible negati!e outcomes.

Discussion of Major Debates ne of the biggest issues with raising the minimum wage is, will it decrease 'obs a!ailable

and increase po!erty. (a!id )eumar$ the *rofessor of +conomics at the Uni!ersity of ,alifornia mentions, -"here is no research supporting the claim that minimum wages reduce the proportion of families li!ing in po!erty. /)uemar$0. )ic$ Shul1 howe!er disagrees and belie!es there is e!idence that minimum wage can decrease the 'ob mar$et and increase po!erty when he states, -"hese laws lead to a reduction in employment opportunities for low&s$illed wor$ers. /Shul10. 2e is plainly telling us, based on historical e!idence, that when minimum wage rises, 'obs for low&s$illed employes falls. 3amelee 4ouie, howe!er disagrees with Shul1 when he mentions, -5ou could point to

the 6779 minimum wage increase as e!idence that it harms 'obs, but that would be dishonest in the e%treme8the economy was already in free fall. /4ouie0. 4ouie states that we cannot listen to Shul19s argument that the minimum wage hurt the 'ob mar$et in 6779, because the economy was already in a downward spiral and all factors must be considered. Many people ha!e tried to ma$e the argument that a minimum wage increase will lead to high unemployment, but this will not li$ely be the case. /Ste!e 4reen0 Another ma'or issue with a minimum wage hi$e is that it will cause small business to fail. Shane, a 'ournalist for the )ew 5or$ belie!es that the minimum wage increase will ha!e bad effects on small business, and particularly teens employed by these small businesses. 2e states, -A study by economist 3oseph Sabia showed that a 17 percent increase in the minimum wage leads to a :&9 percent drop in the number of teens small businesses employ. /Shane0. ;hile this may at first seem li$e a negati!e impact, this is !ery positi!e because it allows for adults caring for families to ta$e these 'obs and be able to pro!ide for multiple people from a 'ob that was originally going toward one

teenager. "he cartoon by Ste!e 4reen shows that the poor are clinging to the minimum wage hi$e because on the surface it loo$s good, but underneath it is crushing 'obs.

;alter 2ic$ey belie!es that a minimum wage hi$e would not hurt small business, but could actually be beneficial. -"able 3. /2ic$ey0. "his table clearly shows that the 17 states that currently ha!e a higher than federal minimum wage actually ha!e more successful employment rates, and number of businesses. Although it is true that initially small businesses may ta$e a slight hit, and teenagers will ta$e a large hit, an increase in minimum wage is o!erall good for the general economy of wor$ing adults, and small businesses. ne of the biggest arguments against a minimum wage hi$e is that it could lead to inflation. 2owe!er, 3eannette ;ic$s<im, a highly respected economist, firmly belie!es that these claims are false when she tal$s states, -"he potential impact of minimum wage hi$es on the o!erall price le!el is simply too small to ha!e any appreciable impact on inflation. /;ic$s<im0. ;hile she does belie!e a minimum wage increase has the potential to cause small amounts of inflation, she does not agree that this rate would be high enough to -ha!e any appreciable impact.. a 67= increase in the minimum wage could also ha!e ma'or impacts on large businesses, as prime e%ample of this is what would happen to Mc(onald9s. Mc(onald9s only has a profit margin of 67= , so if the minimum wage was raised chances are they would ha!e to raise their prices by 67=. "his would be uni!ersal across all food and ser!ice industries, as many ha!e an e!en lower margin

than 67=.

/)ewman0 ;hether or not these e%perts are correct in assuming that a minimum wage hi$e will be beneficial for the economy, it is hard to ignore the fact that many Americans are unable to li!e on the current minimum wage, and something e!entually has to be done about this. Mc(onald9s has released a financial plan for minimum wage employees to follow, howe!er there is a catch to this plan they factor in income from a second 'ob. "his pro!es that it is impossible for someone to li!e off of one 'ob on minimum wage, and many people are unable to find a second 'ob, or do not ha!e the time to wor$ a second 'ob and their current 'ob />aybern0. "he current minimum wage does not allow for employees to ma$e enough to afford a modest lifestyle, and something has to be done in order for our economy to be able to reco!er. Conclusion ;hile it is important to note the arguments against minimum wage increase, as with poor e%ecution and communication many of these could become a reality, it is safe to say that a minimum wage increase will help the nation, and the economy as a whole. ?n the long run it will create 'obs for family pro!iders, raise profit and employment of small business, and is unli$ely to cause inflation at any appreciable rate. ur nation is reaching a point where inflation has consumed the dollar to a point where the current minimum wage is not possible to li!e on. ?t is ine!itable that the minimum

wage must e!entually be raised, and raising it a small amount now, rather than a large amount later will ha!e less negati!e impacts on the economy.

;or$s ,ited

4ouie, 3amelle. @2ow ;ould a Minimum&;age ?ncrease Affect the +conomyA@ The American Prospect. "he American *rospect, 13 Beb. 6713. ;eb. 1C Beb. 671 2ic$ey, ;alter. @A 2i$e ?n "he Minimum ;age ,ould 4e A 2uge 4oon "o Small 4usinesses.@ Business Insider. 4usiness ?nsider, ?nc, 19 Beb. 6713. ;eb. 18 Beb. 671D. )eumar$, (a!id. @(elay the Minimum&;age 2i$e.@ The Wall Street Journal. (ow 3ones E ,ompany, 16 3une 6779. ;eb. 1C Beb. 671D. )ewman, >ic$. @"he +%change.@ Yahoo Finance. "he +%change, 69 Aug. 6713. ;eb. 6: Mar. 671D. >aybern, )ona. @Minimum ;age ?s ?mpossible to <i!e ff & (aily of the (ay.@Dailyoftheday. ).p., 1F 3uly 6713. ;eb. 18 Beb. 671D. Shane, Scott. @<isten to Small 4usinessG (on9t ?ncrease the Minimum ;age / pinion0.@Entrepreneur. +ntrepreneur, 6D May 6716. ;eb. 1C Beb. 671D. Shul1, )ic$. @American +nterprise ?nstitute.@ Raisin !inimum Wa e Is !a"imum Stupidity. American +nterprise ?nstitute, 11 Apr. 6716. ;eb. 1C Beb. 671D. ;ic$s<im, 3eanette. @"ruthout.@ Truthout. ).p., 66 3an. 6713. ;eb. 18 Beb. 671D.