The Minimum Wage Change

1151 WordsJul 12, 20185 Pages
Introduction One of the most talked about subjects in the U.S economy is the topic of minimum wage. With president Obama’s increase in the minimum wage to 10.10$ per hour people, both economists and politicians alike, have been debating whether raising the bar is a smart idea. At a time when the country the country’s inflation continues to rise at a steady pace and Americans are constantly working to feed their families, some economists know that a raise in the minimum wage would help elevate some of the difficulty. The last time the federal minimum wage was raised was in July of 2009, where rose from 6.55$ to 7.25$. However, there are plenty of reasons as to why the wage should be raised. Some may not think it, but raising the…show more content…
Prices skyrocketed, quadrupling in the span of four years, but workers saw no increase in pay. This meant that no one could actually afford to feed themselves. (The Great Patriotic War) However, an increase in wages would mean more money being handed to the hands of people who would spend it the most, increasing revenue for industries and pay for their employees. These employees would then go out and spend more money themselves as their incomes raised and that would mean more tax revenue coming into the hands of the government. With the money, the government would be able to afford more infrastructure projects such as repairing bridges and adding on to colleges, leading to an increase in employment. This is known as “trickle-down” economics, which is “an economic idea which states that decreasing marginal and capital gains - especially for corporations, investors and entrepreneurs - can stimulate production in the overall economy. According to trickle-down theory proponents, this stimulus leads to economic growth and wealth creation that benefits everyone, not just those who pay the lower tax rates.” (Investopedia) An Increase in Unemployment? One of the biggest arguments against raising the minimum wage is that it ends up raising employer costs (ex. having to pay more for employees) and leaves less and less opportunities for teenaged workers and disadvantaged workers to find jobs. However, David Card and Alan Krueger, both of whom are heads of the
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