The topic of raising the federal minimum wage has been one of hot debate in United States politics. It has recently gained momentum within the last decade due to the Great Recession that many Americans still feel the effects of. Many argue about the moral aspect of the minimum wage, while others argue about the financial and economic aspect. While many different arguments have been proposed, in this research paper, I will make the argument and provide evidence that raising the federal minimum wage would be more detrimental than beneficial in almost all aspects of the argument. One of the first main arguments for raising the minimum wage is that it helps to reduce poverty and/or increase wages. While in theory this argument seems very logical:
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According to a document released by the Congressional Budget Office, a federal agency that provides information to Congress pertaining to budgeting and economics, “…increasing the minimum wage reduces employment in two ways. First, higher wages increase the cost to employers of producing goods and services. …Second, a minimum-wage increase raises the cost of low-wage workers relative to other inputs that employers use to produce goods and services, such as machines, technology, and more productive higher-wage workers” (Congressional Budget Office 7). This information highlights the fact that minimum wage increases hurt the very people that they are attempting to help: low-wage workers. By raising the minimum wage, companies are given the option of using machines that are just as expensive but much more efficient. Furthermore, the Congressional proposed “…implementing the $10.10 option would reduce employment by roughly 500,000 workers…” and “Under the $9.00 option, employment would decline by about 100,000 workers…” (Congressional Budget Office 12). Again, as was previously stated, the jobs lost would mostly be those of the low-wage workers whom the very raise was attempting to help in the first
According to a document released by the Congressional Budget Office, a federal agency that provides information to Congress pertaining to budgeting and economics, “…increasing the minimum wage reduces employment in two ways. First, higher wages increase the cost to employers of producing goods and services. …Second, a minimum-wage increase raises the cost of low-wage workers relative to other inputs that employers use to produce goods and services, such as machines, technology, and more productive higher-wage workers” (Congressional Budget Office 7). This information highlights the fact that minimum wage increases hurt the very people that they are attempting to help: low-wage workers. By raising the minimum wage, companies are given the option of using machines that are just as expensive but much more efficient. Furthermore, the Congressional proposed “…implementing the $10.10 option would reduce employment by roughly 500,000 workers…” and “Under the $9.00 option, employment would decline by about 100,000 workers…” (Congressional Budget Office 12). Again, as was previously stated, the jobs lost would mostly be those of the low-wage workers whom the very raise was attempting to help in the first