http://www.nytimes.com/2013/03/03/business/the-minimum-wage-employment-and-income-distribution.html?smid=re-share&_r=0
Obama has recently proposed a raise in the minimum wage to $9 an hour. While this was very popular among the general public, many economists thought otherwise. The reason why a raise in the minimum wage is not a good idea is because this will only increase unemployment, which is one of the fights we are fighting right now as an economy. If companies have to increase their wages, then they are going to higher fewer people and possibly let go of some employees to contemplate the higher expenses. Statistics have also shown that over half of all employees working the minimum wage are people coming from a family with an income of $40,000 or more. So this increasing of the minimum wage would not make as large of an impact on the people below the poverty line as the general public may have thought.
Obama has recently proposed a raise in the minimum wage to $9 an hour. While this was very popular among the general public, many economists thought otherwise. The reason why a raise in the minimum wage is not a good idea is because this will only increase unemployment, which is one of the fights we are fighting right now as an economy. If companies have to increase their wages, then they are going to higher fewer people and possibly let go of some employees to contemplate the higher expenses. Statistics have also shown that over half of all employees working the minimum wage are people coming from a family with an income of $40,000 or more. So this increasing of the minimum wage would not make as large of an impact on the people below the poverty line as the general public may have thought.
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