Should minimum wage be raised?

An article from CNBC explained some of the effects of raising the minimum wage in Seattle. Seattle is gradually raising its minimum wage from $9 an hour to $15 dollars an hour by 2021. This is the wage that current presidential candidates, Bernie Sanders and Joe Biden, are proposing as a new federal minimum wage. The current minimum wage is $7.25 and raising it to $15 is a huge increase. The results of this increase have not given a clear answer about whether or not this is a good economic decision. For some businesses they find that although workers are happier they are not asking for as many hours and the new labor costs are forcing them to raise food prices. Other companies have had to redo their business model but are now thriving, whereas some businesses have closed their doors. I see many sides to this argument. Yes, when an employee is paid more for the same work they were doing there is a boost in moral and better quality work comes from that. However, this clearly has a huge chain effect on the rest of the economy not just the restaurant. Paying more in labor costs impact the overall profit of the company. With other prices rising, like food and property, the cost to keep a business going can exceed the amount of profit. If companies no longer become profitable then they close and those employees are now out of a job. While I do see how raising minimum wage seems like an easy solution to many poverty issues in America the chain reaction has to be better understood. Nobody will be better off if companies start closing because of this.

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