It has been long debated by policy-makers if minimum wage would increase economic activity, thus creating more jobs. There are many factors we have to look at to see the effects of raising minimum wage. Raising minimum wage people argue that it can lead to job loss. Well people haven't speculated enough to make that assumption. Low-wage earners are the backbone of our economy, they're the ones spending most of their earnings. Meaning more money in their pockets means more spending, leading to more economic activity. Job creation is directly linked to higher wage standards. As there is more economic stimulation, job opportunities will follow. A recent study done by The Los Angeles Economic Roundtable determined that raising the minimum wage to $15 would give an additional 9.2 billion in annual sales and also creating more than 50,000 jobs. Also another study done by the Congressional Budget Office argues that raising the national minimum wage from $7.25 to $10.10 might cost up to 500,000 jobs but would increase wages of 16.5 million Americans and bring 900,000 people out of poverty. This study shows much more benefits and less harm done.
If we take a look at minimum wage workers. Most minimum wage workers are comprised of adults in low income households. People usually relate low income jobs with teenagers and argue that raising the wage for them will benefit nothing. Instead we are looking at low income households. The working class, the group that usually spends most of their earnings on basic necessities such as rent, food, health care, transportation, and child care. Also one of the perks of higher minimum wage is that it encourages workers to perform better at their jobs. Raising the wage for the working class means that there will be more money flowing in the community due to more spending. We can take a look at Washington for example, they are the highest minimum wage state in the nation.
