The Benefits Of Raising Minimum Wage

One of the most commonly asked questions in our society is whether or not the government should raise the minimum wage. While raising the minimum wage would not only lift individuals out of poverty, but it would also put our economy in danger. Raising minimum wage in the United States will destroy the economy because it will increase inflation, raise the unemployment rate and decrease corporations’ fundings due to labor cost. Raising minimum wage in the United States will affect our economy because of the high rates caused by inflation. Many people are constantly complaining about the low pay they receive in their checks by the end of the week. They constantly complain about the fact that they can barely afford to pay their bills, and if …show more content…
Many Americans lose their jobs everyday, because small businesses cannot afford to pay more money and insurance for their employees. When this happens, the owner of the company fires some employees to maintain his company or he closes his company. This is an outcome that happens very often, and it is forcing many owners to fire employees leading to high rates of unemployment all over the country. Bureau of Labor Statistics (BLS) data reveal that during 2013, “states with minimum wages above $7.25 per hour averaged higher unemployment rates and lower net job growth rates than states with minimum wages at $7.25 per hour” (n.pag). While raising the minimum wage would help stimulate the economy due to the increased spending power of workers receiving higher wages, a former CEO [Ed Rensi] of one of the biggest employers in the United States explained that too high of a government-mandated minimum wage would have a deadly effect on employment” (n.pag) And this seems to be only a small part of the problem, According to Ed Rensi, a chief executive officer (CEO) of McDonald’s, “a higher minimum wage would not only kill existing jobs but also result in closing a substantial number of small businesses, from 15-20%. In theory, raising the minimum wage forces business owners to raise the prices of their goods or services, thereby spurring inflation and unemployment” Ed Rensi …show more content…
It can cause inflation forcing civilians to limit their lives according to what they have in their pockets making their lives a little bit more difficult. Also raising minimum wage will cause unemployment because now the owners of different companies have a shorter mortgage and have to make some adjustments in their business which apparently seems to be getting fired some employees. Furthermore, increasing the minimum wage will lower the funds and resources that many companies need to run their business, because now besides of paying more to get resources they also have to pay more their employees. Indeed raising the minimum wage nationwide will affect our economy not benefit the