Higher Minimum Wage Essay

In this article, the author discusses the economic implications of an elevated minimum wage. The author recognizes both the pros and cons of the situation and outlines what each side of the change means. For instance, for a poor, low-skill worker, a higher minimum wage gives them a better wage to live off. A living wage could also help limit poverty, strengthening our economy. On the other hand, some low-skill workers could even be out of a job because the higher minimum wage discourages employers from hiring them to begin with. A higher minimum wage does not always yield less available jobs for low-skill workers, however, in most studies around the world, this has been the case. In the United States it has been studied and decided that higher minimum wages do not help lower-income families. In class we have talked a lot about the bigger picture. We have looked at the countries supply and demand, production, and employment. All of these are fueled by wages and they all
I am of the opinion that raising the minimum wage is not a good idea. There are too many risks that outweigh the benefits. The author does a great job illustrating this, with examples of other countries experiences. The author never proposes a solution, however. It may be that there is no solution, that unemployment is unavoidable. However, I have always wondered about the idea of having two wages; a minimum and a livable wage. Minimum wage would stay where it is, allowing jobs to stay available to those low-income families, while other workers can ask their employers for a more “livable wage”. This livable wage could also incentivize the workers and increase production. Of course, this is only my second economics course, so this may not be possible, however, there must not be a higher minimum wage. Through supply and demand the ugly truth about the seemingly harmless idea of paying workers more is exposed for all to