A popular topic of debate in America today is the minimum wage. While raising the minimum wage might seem like a good thing in the short term, it can also create problems in the long term. Currently, the minimum wage is $7.25 an hour, which is very difficult to live off of. The solution many are proposing is to raise the minimum wage to $15 an hour. While this would increase economic activity,it would also cause some major problems. The first of these problems is that increasing the minimum wage would force business to lay off employees, resulting in a higher unemployment rate. Also, while raising the minimum wage hasn’t caused inflation in the past, the price of consumer goods would increase.
One of the main concerns with raising the minimum wage is increasing the standards of living for impoverished people and reducing poverty. According to a 2014 Congressional Budget Office report, increasing the minimum wage to $9 would lift 300,000 people out of poverty, and an increase to $10.10 would lift 900,000 people out of poverty. At the same time, a wage increase could also decrease working hours, employment, and overall income. In the debate over minimum wage, this seems to be a recurring problem. While there could be one major pro to raising the minimum wage, there could also be a major con that could potentially outweigh the pro. This is the main reason why the minimum wage hasn’t been raised since 2009. Raising the minimum wage will drastically change the economy, hopefully for the best, but possibly for the worst.