21 September 2015
Misconceptions and Truths of Increasing Minimum Wage
Perhaps one of the most controversial topics in discussion lately is whether or not the United States of America should raise the minimum wage. The common citizen believes that raising the minimum wage is a mistake and that it will harm the economy. There are three main points that people against minimum wage argue, one is that it will reduce employment, the other is that it will raise prices, and lastly that it will drive away business. Hundreds of studies and and handful of researchers have worked to find out what really happens when the minimum wage increases. Each point has a study that supports the consensus, and proves that increasing minimum wage will do more help to the economy than not.
The leading argument against minimum wage is that it will reduce employment. This is not true. Humans are needed because of customer service, which is highly valued by consumers. Machines, which are the most common replacement for low wage workers, are incapable of inciting human interaction. Machines are cold and not personable. Most consumers prefer human interaction over machines, otherwise the companies would have switched long ago. One example to support the fact minimum wage does not decrease employment is a study done by Krueger and Card, who are well respected economists and co-authors of publicated research. They collected data and did research to determine the effect of an increase in minimum wage. Krueger and Card examined fast food employment before and after the 1992 increase in minimum wage in New Jersey. They found that employment actually increased, even though it was a very small increase (Card and Krueger). The fact th...
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U.S. Constitution. Preamble. Sec. 1.
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