Effects of Raising Minimum Wage in America

Effects Of Raising Minimum Wage In America

Brandon Hornbarger

Embry Riddle Aeronautical University

Econ 211 – Macroeconomics

EFFECTS OF RAISING MINIMUM WAGES IN AMERICA

Introduction

            In America, debates on amounts payable to employee dates back more than 200 years ago. Until today, the debates are yet to be settled particularly because the economy is still growing and population is rapidly increasing. Most employees working in America are not satisfied with wages they earn per hour. Some people consider it as too little others consider it as more than enough. However, the bigger ratio complains. The United States government has been in the vanguard to guarantee satisfaction for every employee working in any organization. The government has also attempted to ensure equity when allocating wages to working individuals. It is due to this reason that the government introduced the minimum wage salary. The minimum wage salary is the least possible amount an individual can earn per hour. Currently, the minimum wage in America is $ 7.25 dollars per hour. Most people however have protested claiming the wage is little for a typical American having in mind the current lifestyle in America. However, in 2013 Obama had anticipated the government would raise the minimum wage to $9. The increase could have seen 15 million people benefiting from the decision. Apparently, while most people are calling for the increase in the minimum wage they are forget other implications following the increase. This paper attempts to explain some effects caused by an increase in minimum wages. Notably, some effects are positive while other negatively affects the economic life of some America. Many sectors in America would be affected by the increase however; this paper will pay attention more to employment, family income, national income and effect on the federal budget.

Effect of raising minimum wages to employment

            To begin...