Minimum Wage Increase, Necessity or Economic Mistake?

  The debate over minimum wage has been an on-going one for years.  People argue that with so many Americans living under the poverty line, it is inevitable to bring the average salary up to meet the rising cost of living, while others believe that this would only put more American citizens out of work.  This controversial issue, caught my attention because of its impact not only on the people, and businesses affected, but also government spending.

  The author argues that "higher wages translate to higher spending, and less need for government subsidies" this is good for us as a whole as it will cause less of our citizens to demand as much from the government, which allows for more to be spent on education, to create a well based country.  The downside of this from the perspective of the other side is that labor costs are approximately two-thirds of the product costs.  This majority spending on employees would have to be decreased in some way if labor wages went up.  But as the author states, the costs are down compared to the corporate profits.  This means that businesses wouldn't be losing to much profit if the wages were raised slightly, and the increase would be more spending of their employees spreading the wealth, that eventually comes back to them.

  The author’s comments on McDonald's attempt to make suggestions for living on their minimum wage salary show how laughable it is to try to get by on this payment.  There is no room for food, gas, or other necessities to survive, even accounting for having a second job after your 40 hour work week there.  His comparison to the country with the lowest unemployment rate in the developed world, show a direct comparison to our inability to survive by ourselves on minimum wage and their ability to thrive even dealing with the new labor costs.

  This comparison using the different studies of the living arrangements for both our current minimum wage, and a raised one, show the authors credibility behind his argument while he explains concisely the absence of cons to raising the price.  The main argument of those opposing his idea has been diminished.  This shows the voters who can make this change, a valid reason to try and raise minimum wage, regardless of their own income level, as it is beneficial to a multitude of levels.  The minimum wage workers, business owners, and middle class employees all benefit from the increase in spending and buying.