The Effects Of Raising The Minimum Wage

1311 WordsMay 5, 20156 Pages
The Negative Impacts of Raising the Minimum Wage While the debate over the effects of raising the minimum wage continues, there are countless studies and statistical data to support both sides of this controversy. Often the negative impacts of these wage increases are overshadowed by those who want to help the working class who live at or below the poverty level. Do these increases actually help the ones that they were intended to help? What are the negative impacts on the rest of the working class? How do these increases affect small business, unskilled laborers and overall unemployment? Originally enacted in the 1930s to ensure fair wages for all those employed, today the minimum wage rarely benefits those it was designed to help. Increasing the minimum wage has been shown to have many negative impacts such as reducing entry level non-skilled positions, increased unemployment, and has been shown to be a key factor in increasing inflation. Surprisingly, the minimum wage does very little to help the workers it was intended to help. Data from the Bureau of Labor (2014) shows that only 4.3% out of the 75.9 million hourly paid employees earned at or below the Federal Minimum wage of $7.25 an hour with just over half of those earning less than that due to working in jobs that are exempt such as disabled workers, tipped employees, and full-time students. This population of workers currently accounts for a smaller portion of the work force than it used to and in turn only
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