Question

Do you think the federal minimum should be raised? Why or why not? What could be consequences? (Think also about the means-tested government programs like food stamps and who is eligible for them.)

Answer 1

Opponents argue that increases to the minimum wage would place a burden on employers, particularly small businesses, resulting in slower growth and reduced employment levels. Supporters of a rate increase say the minimum wage hasn't kept up with inflation and many minimum wage workers are poor. Inflation has not put the minimum wage on track. As a result, many workers ' pay, especially those with three or more people's families, is now well below the level of poverty.
Studies show phased minimum wage increases have a low impact on unemployment.

An rise to the minimum wage in businesses with a fixed pay budget may result in layoffs or a slower recruiting. Employers could hire fewer workers in entrance-level jobs, which could make it more difficult for workers to start their careers. An increase to the minimum wage would give employers an incentive to invest in automated processes, technology and machinery to increase productivity rather than human resources. Increases the incentive for companies to outsource work to countries where minimum wage rates are lower. A higher minimum wage could lead to higher dropout rate for high schools.