The Benefits Of Raising The Minimum Wage

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In 2009 the federal minimum wage of $7.25 an hour has stayed the same since then (“Should We Raise”). Many Americans are living in poverty which they are struggling on a day to day basis. The costs of housing,college, and healthcare are going up in cost because of this many families are living below the standards. The federal minimum wage should not be raised because it would hurt small businesses and increase competition among workers. Raising federal minimum wage would hurt many small businesses. In a Gallup Poll in 2013, it gathered small businesses owners and said that raising minimum wage would hurt small businesses. According to the Vice President of fast food chain White Castle, predicted that if the minimum wage increased to fifteen dollars that thousands of workers will be laid off or close a lot of stores. If a small business owner have to raise their minimum wage then they would have to make choices that could affect the struggling economy. Examples of choices that could affect the economy are he or she could make less of a profit, raise prices, and lay people off from work. . Businesses could raise prices of their goods to make up for their loss in wages. This effect may anger the customers. A Purdue University study that increasing minimum wage of fast food restaurants workers states that, “ $15 or $22 per hour would result in a price increase of 4.3% and 25% respectively ” ( Should the Federal). This shows that all fast food restaurants prices of their
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