Minimum Wage

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The standard minimum wage level has been a controversy over its insufficient wages set for working class Americans. The minimum wage was established to protect unskilled workers from being exploited by employers’ low pay. Introducing the minimum wage provided stabilization in the workplace, but as the cost of living increases, working Americans are demanding a livable wage. In the recent past, the American dream fadedness changed the way Americans view the economy. For many wageworkers, the American dream is becoming less of a possibility as corporations minimize the chances for the poor working class to obtain the dream. However, raising the federal minimum wage will likely result in higher prices for the middle and lower classes because…show more content…
Raising the minimum wage raises worries on the middle class about their development in the future economy, while economists and small businesses are also concerned. Advocates promoting a raise to the minimum wage are reducing attainable opportunities for small and new businesses to develop. Business owners concentrate on the outcome of raising the minimum wage instead of the effect on working people. In “measuring the full impact of Minimum and Living Wage Laws,” Wicks-Lim urges wage workers that increasing the federal wage will have costly consequences on the economy. The minimum wage will force large ripple effects to take place as prices rise to cover the new wage. Moreover, “the increase in the federal minimum wage from $5.15 to $7.25 per hour will contribute to a higher unemployment rate.” (Dorn) The business community warns that ripple effects will eventually take place if the federal wage is increased, aiming at small business owners to close or lay off low-wage workers. Raising the cost of products will drive away customers and end the shopping experience by shopping online rather than paying for the services in the stores. Small businesses are already laying off low-skilled workers and investing in self-service tablets, robotics, and other labor saving devices in anticipation of a lower minimum wage.
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