The Effects Of Raising The Minimum Wage

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Karl Marx’ capitalism theory goes hand in hand with the minimum wage issue. Declining wages and growing inequality are the world’s central economic challenges. In modern day America, where the cost of living is constantly on a gradual increase, the question arises: Should the minimum wage be increased? After doing some research, reading works by authors such as: Jordan Weissmann, Jared Bernstein, and Brad Plumer. I have come to the conclusion that, although increasing the minimum wage will have various effects on diverse demographics, increasing the minimum wage will ultimately benefit our nation. How would raising the minimum wage affect employers? On first thought, raising the minimum wage sounds like a no-brainer, but after looking at the situation with a little more depth, you’ll begin to see that it’s not so simple. For one, raising the minimum wage takes a toll on employers/business owners in many ways. One way that can be seen right off the bat, is that employers would have to pay their workers more money. Having to pay the workers more money in wages would increase the expenses for the company and decrease the profits and business owners/employers would not be too happy about this. Another problem that would arise for the employers is giving raises. There…show more content…
Jordan Weissmann came to the conclusion that, “by taking money from businesses and giving it to their worst paid employees, raising the minimum wage might, in theory, increase consumer spending” In other words, Weissmann is saying that if the lower class employees have more money to spend, they will purchase more goods and generally increase the flow of money throughout the nation. Looking at all the benefits of raising the minimum wage, one will quickly come to realize that losing 500,000 workers is but a mere price to pay for such a greater

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