Raising minimum wage looks promising in the short run, but the economy is weaker and harsher to small businesses, large corporations and individuals in the long run. People that are for raising the minimum wage recognize it as an opportunity for the poor to obtain a better standard of living with their higher salaries. Although the results of studies have concluded that raising the minimum wage weakens the economy as a whole. The Heritage Foundation found that if Congress were to raise the minimum wage to $10.10 an hour nearly ?an estimated 300,000 jobs per year? eliminated as well as ?lower[ing] the national gross domestic product by an average of $40 billion per year?(ALEC 4). If the minimum wage rose up to $15 per hour by 2020, it ?would cost 6.6 million jobs? (Holtz-Eakin ...
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...le. Although there are many factors that the Proponents do not consider like: inflation, the laws of supply and demand, the cause and effect of added costs for business and more. Proponents of raising minimum wage want to alleviate poverty, but in reality, raising minimum does not benefit the poor at all.
Minimum wage is a way for lower-skilled and inexperienced workers to attain an income. However, to increase the minimum wage will weaken the economy, businesses, and individuals. Unemployment and prices will increase. Businesses expansion, consumer spending, and job experience will decrease. GDP and money flow will decrease that ultimately shrinks the economy. Raising minimum wage short run promises do not compensate for the long run results hurting everyone from the cashier at McDonald?s to Large Corporations and even the US economic system in the end.
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