Raising the Federal Minimum Wage

RAISING THE FEDERAL MINIMUM WAGE:

POSITIVE OR NEGATIVE EFFECTS?

An Issue Paper Presented to

Professor —

Professor of Marketing

Valley University

for MGMT 2200

by

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EXECUTIVE SUMMARY

Raising the minimum wage is a national conversation that America is constantly having

now more than ever. There has been a proposal to raise the minimum wage federally to $10.10

per hour. This report explores the positives and negatives of raising the federal minimum wage

by examining the effects the wage raise has on the unemployment rate, welfare, small business,

and the economy as a whole.

This federal minimum wage proposal can grant the ability to put more money in the

employee’s pocket, increasing spending power. It does have the potential however, to do more

damage than good. The increase of a minimum wage will increase prices, lower employees

working hours, and increase the unemployment rate nationally. These consequences negatively

affect more than just the people receiving the minimum wage increase. It has a domino effect

that can impact our national debt. It can affect the budget allocation of our tax dollars, it can

affect the value of the American dollar. It has the capacity to close the doors of small businesses

and destroy the American dream.

The right solution is to do away with the minimum wage all together. Let competition

control the wages. Promote hard work, not handouts. Give the young inexperienced workers the

ability to gain work experience and earn a little spending money while doing it. Not get priced

out of a job.

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RAISING THE FEDERAL MINIMUM WAGE:

POSITIVE OR NEGITIVE EFFECTS?

Introduction

Issue Statement

The Purpose of this report is to explore the positive and negative effects of raising the

federal minimum wage. This report answers the following questions:

1. What affect does raising the minimum wage have on the national unemployment

rate?

2. How will raising the minimum wage affect the gap between...