This article discussed the continued opposition to Obama's decision in raising the minimum wage rate over the next year. The article references the beginning of minimum wage laws from the time of President Roosevelt during the Great Depression and how wage restrictions helped to stimulate our economy. Current debate centers around the argument that minimum wage is good for most business, but not all small businesses. Small industries may not benefit or be able to support all their employees and have to face cuts and lay offs. Some conservative economists argue that instead of improving living standards, a rise in the minimum wage could actually lower the standards and the economy as a whole could hit a record low. Following Obama's State of the Union address, representatives and conservative media groups have tagged the raise in minimum wage as a "job killer." Lobby unions have also considered pulling away from expected donations and threatening other areas of involvement as a way of showing their strong beliefs and taking significant action during President Obama's upcoming term.
http://www.huffingtonpost.com/peter-dreier/raising-the-minimum-wage-_b_2750336.html?utm_hp_ref=business&ir=Business
I agree that raising the minimum wage may pose a problem for some small businesses, as they would have to pay higher wages and would likely have to lay-off some workers. However, as we have seen in the past, raising the minimum wage does not have a significant impact on unemployment rates. Most people will not be affected by this change because their wages are already well above the minimum wage.
ReplyDeleteI think there could be some sort of impact on unemployment by raising minimum wage, I don't know how large the impact would be but I think it would definitely change unemployment, and cause changes for many companies and business. It also makes sense that it would impact the small businesses more for them paying their employees. But I do think this increase would effect the unemployment rate, whether small or large.
ReplyDeleteRaising the minimum wage doesn't significantly affect unemployment for working age adults, as most people of that age have salaries well above minimum wage. However, it may substantially effect the employment of teenagers and college students. Because of this I don't think raising the minimum wage is a bad Idea.
ReplyDeleteThe point that we are at in the economy I think that raising the minimum wage would be a bad idea. For one, the minimum wage only affects a small majority of the population. People that are not teenagers or young adults that make the minimum wage are actually well about the poverty line and would not need a raise in the minimum wage. This would add to unemployment and this is something we can not have in today's economy.
ReplyDeleteThis seems to be a topic that the federal government can't come to an agreement on I think that it should remain a state decision. The state basses that minimum wage on the standard of living that a state sets up based on taxes. Although I can see where it is unfair, the minimum wage in Ohio is $7.85 and in my home state of Connecticut it is $8.50.
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