Increasing Minimum Wage Increase

Decent Essays
Recently, debate on whether the government should raise the minimum wage for fast-food restaurants has had employees protesting in the early-morning darkness outside of McDonald’s. Minimum wage shouldn’t be raised to fifteen dollars per hour. Increasing the minimum wage will not increase the change of workers getting out poverty or unemployment, and small business cannot stand the financial burden.

The federal minimum wage for employees is $7.25 per hour. It has been effective since July 24, 2009. Its general purpose was to keep America’s workers out of poverty, and increase consumer’s purchasing power in order to stimulate economy. Progressives introduced bills in the House an Senate to increase the federal minimum wage to $15 and, in a
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If the minimum wage is raised it would drive small businesses that are already struggling out of business. Seattle recently approved a minimum wage increase to $15 an hour, and now everyone's curious about how exactly the change may affect companies. These questions include whether or not businesses will raise prices, fire staff, cut hours, or all of the above. “As a business owner, my biggest expense is labor,” says Brett Bastian, CEO of Blast Moba in Salt Lake City, Utah. “Increasing minimum wage from $7.25 to $15 is doubling it. This is a huge burden to businesses but the cost will get passed on to consumers. I have a business partner who said he will have to increase his prices by 40 percent if it happens.” There would be less small businesses that would be hiring and even the larger business would hire less people because of the overall cost of hiring employees. Less people would be working. The effects of raising the minimum wage may impact small business owners far more than large companies, because a rise in minimum wage impacts the profit margins of small business at a greater rate, according to Gaebler.” The study from Purdue University’s School of Hospitality and Tourism Management, “If the minimum wage were increased to $15 an hour, prices at fast food restaurants would rise by an estimated 4.3 percent, according to a new study. That would mean a McDonald’s Big Mac, which currently goes for $3.99, would cost about 17 cents more, or $4.16.” You could also expect to see similar increases in the price of many consumer and business
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