What would be so bad about raising minimum wage? Before other states jump on the $15 minimum-wage bandwagon, they might want to look at what's happening in Massachusetts — one of two states with a $10-an-hour minimum wage. Massachusetts increased the minimum wage from $8 to $9 at the start of 2015 and to $10 on the first day of 2016. The state is now mired in its longest stretch of net job losses since the recession in both the retail and the leisure and hospitality sectors, Labor Department data show.
“Of course, nothing helps families make ends meet like higher wages. … And to everyone in this Congress who still refuses to raise the minimum wage, I say this: If you truly believe you could work full-time and support a family on less than $15,000 a year, go try it. If not, vote to give millions of the hardest-working people in America a raise.”
Gitterman, Daniel P. “Remaking A Bargain: The Political Logic Of The Minimum Wage In The United States.” Poverty And Public Policy 5.1 (2013): 3-36. EconLit. Web. 24 Oct. 2013.
Henderson, David R. “Minimum Wage, Minimum Sense.” Wall Street Journal. 25 Feb 2006. Proquest. Web. 3 April 2014.
Many people against raising the minimum wage create arguments such as, “it will cause inflation”, or, “ it will result in job loss.” Not only are these arguments terribly untrue, they also cause a sense of panic towards the majority working-class. Since 1938, the federal minimum wage has been increased 22 times. For more than 75 years, real GDP per capita has consistently increased, even when the wage has been
The minimum wage debate is nothing new for economists. The battle to identify the effects on American workers and the economy will continually be at the center of contention. The current research conducted on minimum wage debates clearly identifies those who support the increase and those that are opposed.
Some think that the minimum wage should not be raised, but others think that the minimum wage should be raised. If one had to be chosen, raising the minimum wage would be better. The minimum wage should be raised because if you were to work full time on minimum wage, you are below the poverty line; Also states that did raise the minimum wage above the federal standard have had more job growth than states that did not. Finally, "Minimum wage workers are much more likely to immediately go out and spend that extra money in the economy," says Heidi Shierholz of the Economic Policy Institute, which favors raising the minimum. "That's because they're often living paycheck to paycheck."
“An increase in the minimum wage will boost income for the poorest workers without the danger of creating more unemployment.”, stated President Obama in September 2014. Is this statement about an increase in minimum wage really true? There are two sides to the debate about minimum wage. The minimum wage is a major issue in the world of economics and politics. Political figures often prey on the public’s general ignorance of economics and promise to increase the minimum wage. Economists, on the other hand, view the long term effects and see the damage it can cause. David Card and Alan Kruegur, two economists at Princeton University conducted a study on New Jersey’s 18% minimum wage increase. They looked the impact on the New Jersey economy and compared the results to the state of Pennsylvania which did not make any change in the minimum wage during the period of the study..