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In July 2009, the minimum wage increase, legislated by Congress in 2007, arrived at its last stage. The general cost of employing untrained workers was raised by 10 percent because of this increase. Extensive research by economists shows that raising the minimum wage for workers could come at the expense of much more unemployment for untrained and younger workers. Fewer overall available jobs and reduced hours for the employees would also be a primary problem. Therefore, a lower standard of living for workers and a decrease in consumer spending would be ultimately produced. I love gum. Packs of gum are expensive in 2014 compared to the price in the 1970s. There is only so much money I am able to spend on gum. If only I had lived back in my parents' time. They frequently talk about how gum during their childhood cost only a dime or a quarter. I would be thrilled if I could take all of the cash I have today and spend it on the 1970s gum. One might wonder what gum has to do with the minimum wage in the United States. How could gum have gone from a dime to almost $2.00 per pack within 40 years? Well, minimum wage is very similar to this. Take this into consideration. "As a 2005 graph on minimum wage by the U.S. Department of Labor shows from 1970 to 2005 the minimum wage fell from $8.00 to $5.00" (Hassett 239). This was adjusted for inflation based on 2005 dollars. It is relevant and important to note that this is documented in 2005 dollars, not 1970s dollars. "Even though the minimum wage has risen, its value has not increased because of inflation" (Hassett 239). On the contrary, the value of minimum wage has been doing the complete opposite. This is solid evidence for anyone who desires to increase t... ... middle of paper ... ...sing prices, lowering expenses, increasing productivity or making use of some combination of the three" (The Issues Behind the Minimum Wage). If a business cannot offset this reduction of profit by any of these methods, then the business may "go out of business, live with a lower profit margin, or stagnate because of a lack of funds to expand its operations" (Berlatsky 97). Regardless of which of these occur, the net result of increasing the minimum wage is unemployment. It will ultimately price lower-skilled workers out of the job market. The unemployment yields a lower standard of living by taking wages to their extreme minimum – zero. In conclusion, minimum wage laws result in fewer jobs, increased unemployment, lower standards of living and less consumer spending. In the long run, minimum wage laws provide no jobs. Minimum wage laws only outlaw them.
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