Should Minimum Wage Be Raised?

For decades, many Americans argue that minimum wages should be raised. Would it be a help or harm? Many Americans wants this because they believe it would help them have a better life. Moreover, they believe it will greatly help the poor get out of poverty. Also, Harkin believes that raising minimum wage means more for America’s gross domestic product (“Raising…”). Harkin estimates that there will be about $25 billion more for GDP, 100,000 more jobs, and 28 million Americans would get a raise if the minimum wage increases (“Raising…”). However, in my opinion, minimum wage should not be raised. It will cause more harm than good because raising minimum wage will lead to an increase in unemployment and prices of products.

One harmful factor that raising the minimum wage will do is increase unemployment. Many Americans argue that minimum wage will not increase unemployment but will decrease it because it promotes more interest for people to work. However, this may be true but what if people that suddenly were motivated to look for a job cannot find one due to the businesses not accepting employees. These businesses might even decrease the number of employees in their labor thus increasing unemployment. Consequently, many businesses will do this when minimum wage is increased due to increase in expenses by it to keep the business running. According to Olivo, a business owner of a small printing press in New Jersey, states that increase in minimum wage will increases his expenses; therefore, he either has to reduce his expenses by “cutting employees, not hiring new employees, or bring in new technology to decrease the number of employees he needs” (“Raising…”). Some statistics has proven this kind of event happening on where increasing minimum wage will also increase unemployment. For instance, Congress enacted a minimum wage increase in 1974 and unemployment has risen from 5.1% to 9.0% in 13 months (Jaarda). Furthermore, Congress again raised the minimum wage in 1978 for four years and unemployment went from 6.4% to 10.8% (Jaarda). Moreover, Congress enacted another minimum wage increase in 1990 and experiences another unemployment increase (Jaarda). These three examples further prove that increase in minimum wage will increase unemployment due to larger expenses given to the businesses.

Another harmful factor from raising minimum wage is the increase of prices of products. Many people say that increase in minimum wage will increase their spending money for goods.