the sause

I believe we should increase the minimum wage in the United States because it would reduce the amount of poverty, lead to less spending on gov welfare so that it could be spent for other more prevalent issues, and would result in a healthier and happier workforce.

Firstly, Increasing the minimum wage in America to from the current $7.25 to about $10 would be able to get many Americans of the poverty line. This would not only lead to people being able to pay rent and other bills, I would allow to get their necessities much easier and allow more room for spending for enjoyment, allowing people to better budget out money for wants such as better cloths, electronics, food, entertainment, etc. Thus, increasing encouraging economic growth. However, With the increase in minimum wage could cause an increase in prices of other goods due to companies having to pay that increased wage and still come out with a profit so they will charge the consumers more. This would put the minimum wage price closer to the equilibrium price causing such an increase.

Secondly, the increase of minimum wage would allow for less government spending for programs such as welfare. This would allow the government to reduce the amount of taxes that they charge citizens and let them keep that money in their pockets. Or they could keep the taxes the same and do more for the environment or to help of essential workers such as farmers so that they can have more of an incentive to keep producing more a specific crop to have a surplus of a given product for the citizens. Or they could just use that money they would spend on welfare to lower our budget deficit.

Lastly, the wage increase would allow for more people to afford the things they need in order to make ends meet. Parents would be able to spend more time with their family instead of putting over 40 hours every week for more then one job just so they can barely scrape by. Having this increase would reduce the overall stress of people in the workforce along with raising the moral allowing for better quality and keep the quantity of products and or just overall work.

But there are still some down sides that come attached to this wage increase. Just as an example, the increase could result in a higher dropout rate do to people becoming more complacent with what they are earning due to the current money blinding them with what they could be making.

“Pros & Cons – ProCon.org.” Minimum Wage, minimum-wage.procon.org/.

Sherk, James. “$15 Minimum Wages Will Substantially Raise Prices.” The Heritage Foundation, www.heritage.org/jobs-and-labor/report/15-minimum-wages-will-substantially-raise-prices.

Beggs, Jodi. “The Impact of an Increase in the Minimum Wage.” ThoughtCo, ThoughtCo, 3 May 2019, www.thoughtco.com/increased-minimum-wage-impact-4019618.

Increasing the minimum wage has the ability to change the equilibrium prices because if the employers have to pay above equilibrium causing a surplus it could result in less hires or fewer hours for workers, and if they have to pay below the equilibrium price causing a shortage it would mean they would be earning less of a wage. This would affect my decision because both could have some pretty bad effects on the workers, but I would choose to increase the minimum wage in the end.