Congress Should Raise The Federal Minimum Wage

1042 WordsMay 24, 20175 Pages
Many Americans agree that Congress should raise the federal minimum wage, but do individuals truly know the effects of increasing the minimum wage to $15? Some people only look at the comprehensive view of seeking a higher salary, but the increase can cause many negative, as well as positive, effects. Several economists from across the country have done extensive research over the topic of the minimum wage increase, and many differing opinions have formed. The effects can vary from person to person depending on location and implementations that a business takes. Congress last raised the minimum wage to $7.25 in 2009; consequently, a rise to $15 would implement over a 100% increase in the minimum wage. A percentage this high has never…show more content…
These outside factors help business owners find ways to implement the higher labor costs. An increase in minimum wage will have a different outcome for each business. To cover the higher wages and payroll costs, businesses must reduce employment or find a way to adjust to the higher costs. History has shown that implementations of new techniques can take effect, such as raising the prices of the distributed products. By raising the prices slightly, a company can take the additional revenue to apply towards the payroll account. Some businesses already have a large profit margin; consequently, they can adjust their budgets to arrange the revenue to cover the increase in the payroll accounts without raising the prices of the products (Wicks- Lim). This adjustment would not affect the workers; however, the employer would take the deficit in the revenue. Unfortunately, some businesses must eliminate jobs and possibly turn to technological advances to avoid the increase in wages (Sherk). The funds saved from the turnover would then pay for the employees left on the payroll. Businesses should never see a drastic decline in revenue from an increase in minimum wage, so overall a business could argue they can still prosper, if the minimum wage rose to $15. The proposal to increase the minimum wage to $15 should directly impact the low-wage workers affected by minimum wage. The envisioned outcome of the proposal is to “improve

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