One of the most commonly asked questions in our society is whether or not the government should raise the minimum wage. While raising the minimum wage would not only lift individuals out of poverty, but it would also put our economy in danger. Raising minimum wage in the United States will destroy the economy because it will increase inflation, raise the unemployment rate and decrease corporations’ fundings due to labor cost.
Raising minimum wage in the United States will affect our economy because of the high rates of cost living caused by inflation. Many people are constantly complaining about the low pay they receive in their checks by the end of the week. They constantly complain about the fact that they can barely afford to pay their bills, and if they do, these people will end with their pockets empty by the end of the day. Well, we all have been there before and despite the fact that it is hurting us inside it could be worse. The truth is that if the government chooses to raise the minimum wage, they will automatically figure out a way to maintain a balance in our economy, which is usually inflation. The government will simultaneously skyrocket the prices in food products, rent and other basic life needs because they chose to raise the minimum wage, which does not seem to be appropriate. Research shows that “The real problem with the minimum wage debate, however, is that it is a simple argument that masks some uncomfortable realities for all sides of the ideological spectrum. You cannot reduce inequality by the simple working of the unfettered free market, nor can you reduce inequality without money coming from somewhere. You cannot mandate an increase in the minimum wage without a concomitant increase in spending” Za...
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...l contract offer a worker a better quality of life raising the wages and providing medical insurance. A generation ago, the country’s social contract was premised on higher wages and reliable benefits, provided chiefly by employers. In recent decades, we have moved to a system where low wages are supposed to be made bearable by low consumer prices and a hodgepodge of government assistance programs. But as dissatisfaction with this arrangement has grown, it is time to look back at how we got here and imagine what the next stage of the social contract might be. The low-wage social contract has also contributed to a lack of aggregate demand. Because workers are also consumers, and because low-income households spend more of their money than do wealthier households, the low wage system limits the power of workers to help the economy grow by purchasing goods and services.
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