Why The Minimum Wage Should Not Be Raised

Minimum wage has been a controversial debate for many years. Many proponents argued that the minimum wage should be raised for many positive reasons. These reasons include: lift people out of poverty and create income equality, reduce government welfare spending, and increase consumer spending. While many other opponents argued, minimum wage should not be raised because of the negative impacts associated with it. These impacts include: increase in poverty because many workers will lose their jobs, an increase in the prices of goods and services, and reduce consumer spending.
According to the US Department of Labor, in 1890, the average American had an annual minimum wage of $380, which was below the universal poverty level of $500 per year.
Opponents also argue that by raising minim wage, prices will in return increase and people will not be able to afford many basic needs. In order for people to provide their basic needs they will rely even more on the government for support.On the other hand, proponents argue that by increasing minimum wage people will be able to increase their income, provide more for themselves, and rely less on the government for help. Nick Hanauer, Founding Investor of Amazon.com, when interviewed in a Politico magazine titled "The Pitchforks Are Coming… For Us Plutocrats" stated: “If people are getting $15 an hour or more, they don't need food stamps…They don't need you and me to pay for their medical care. If the consumer middle class is back, buying and shopping, then it stands to reason you won't need as large a welfare state.” If the government increases minimum wage, people will no longer have to rely on food stamps and government support. Instead people will be able to provide for themselves with the income they earn, and the government will be able to invest the money they used to pay for support on other innovating things. however, New business produce new jobs for people to work
If prices increase, people will no longer be able to afford goods and serves, and so consumer spending will decrease; however, others believe if minimum wage increases, individuals will have more money to consume more goods and services, because they can afford more with their increase in pay. The more workers earn, the more they are able to spend, which contributes to the growth of the economy. According to The National Employment Law Project (NELP), in the "Minimum Wage Question and Answer" section from raisetheminimumwage.com wrote, “Consumer spending drives 70 percent of the economy, and increasing demand is key for jumpstarting production and re-hiring.” The economy will grow because individuals contribute to the money that is invested in business and corporations that boost the economy growth. According to The National Employment Law Project (NELP), in the "Minimum Wage Question and Answer" section from raisetheminimumwage.com wrote, “A raise in the minimum wage puts money into the pockets of low-income consumers, who immediately spend it at local businesses. If minimum wage increases, people will have more money and they will be able to open a number of new businesses that will employ many