Minimum Wage Going Up…

The federal minimum wage is set to rise to $7.25/hr as of July 24. This will only effect states which haven’t raised minimum wage on their own (for example, Washington DC’s minimum wage is $8.55/hr). This is a sizable increase, as the current minimum wage rests at $6.55/hr. There is some concern, however, that today’s tough economic market simply cannot handle the wage hike; that it will, in fact, lead to higher unemployment. This is a legitmate concern, though certainly nothing to be alarmed about, as it probably won’t have much of an effect, except perhaps in the fast food and retail industries, which have large portions of their staff working at minimum wage.

Only time, however, will tell.

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2 Comments

  1. If raising the minimum wage was so black and white stupid, it wouldn’t be happening. But it’s happening because there is some merit to it (I’m not saying the merit outweighs any of the consequences, I’m just saying that there is some good that comes from it).

    The vast majority of small businesses aren’t effected by it, because the vast majority of small businesses don’t employ staff that work for minimum wage. In fact, most minimum wage workers are employed by giants like retail and fast food chains. So the theory behind the hike is that it will increase the size of the middle class (which everyone agrees is good) by giving more wages to the very poor. Does it work? Who knows. Macro economics is about as black and white as a color wheel. My motto is to not trust anyone who thinks they *know* what’s going on.

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