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Negative Effects Of Raising Minimum Wage

opinionated Essay
1007 words
1007 words
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A raise in the minimum wage is only a temporary solution to fixing the problems in the United States. The federal minimum wage was introduced in 1938, during the Great Depression, and has already been increased 22 times. There are already 19 states that pay their employees well over the federal minimum wage. The highest minimum wage in the United States is in Seattle, Washington, and is set at fifteen dollars an hour. Interestingly enough, if minimum wage followed inflation, then it would be set at $4.24 an hour, which means it is already $3.01 over that amount that it should technically be (James Sherk 2013). Continued increases of the minimum wage in the United States need to be stopped as it will result in devastating impacts on low-skilled …show more content…

In this essay, the author

  • Opines that a raise in the minimum wage is only temporary solution to fixing the united states' problems.
  • Argues that a raise in the minimum wage increases the demand for workers with greater skills, which makes it more difficult for disadvantaged workers, such as teenagers and people with lower skills.
  • Explains that if the minimum wage continues to rise, everything will increase in cost, such as rent, groceries, and other goods and services.
  • Explains that the higher the minimum wage, the more significant the increase in the unemployment rate.
  • Opines that raising the minimum wage would have a dramatic effect on low-skilled workers, the cost of living, and unemployment rates.

The cost of rent will increase monthly because if people have more money to spend, then landlords will bump up their prices. For example, California recently raised their state’s minimum wage to ten dollars an hour. According to the figures from the Council for Community and Economic Research, “the cost of living in Los Angeles is forty percent higher than the United States average” (Michael Hiltzic 2016). In result, this is just another negative impact on raising the minimum wage. Workers who cannot survive off of $7.25 an hour will not be able to survive off of $10.10 an hour because of inflation. Raising the minimum wage also forces business owners to raise the prices of their goods and …show more content…

These are just a few of the many awful effects that raising the minimum wage brings. When workers hear a raise in the minimum wage, all they think about is a bigger paycheck and not what will happen to low-skilled workers, the cost of living, and the added stress to unemployment rates. New workers with less skills will have a harder time finding a job. The cost of living is going to hike due to inflation. Unemployment rates will rise due to added stress on businesses. An increase in the minimum wage is great news to a high schooler saving up to buy a new phone, but terrible news to someone trying to raise a family. If the minimum wage continues to increase, these problems will get worse instead of

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