Should Congress raise the minimum wage? As our federal government debates the idea of raising the minimum wage, several interesting questions arise. More importantly, should we raise the minimum wage? I believe it is a bad idea to raise the minimum wage from $7.25 an hour to $10.10 or more in a short period of time. I'll explain why a radical increase in the minimum wage would kill jobs and hurt our economy. The main reason why a radical increase in the minimum wage would kill the economy is the pressure it would put on small businesses. According to TheWashingtonPost.com article, small businesses are the backbone of the economy. They also said that many U.S. Small Business Administration studies show that small businesses employ just over half of the private sector workforce. Additionally, these small businesses have accounted for nearly two-thirds of the nation's net new jobs over the past fifteen years. Small businesses would not be able to afford the additional wage increases resulting from the dramatic new pay scale. The small business owner would have to cut workers or reduce hours to offset the wage increases. This would have a profound effect on the current economy. Furthermore, this would have a profound effect on other sectors of the economy. After reading TheWeek.com article, "There is no doubt that a higher minimum wage would create an immediate drag on profits and create pressure for higher prices," I believe that a radical increase in the minimum wage would more likely lead to higher priced goods and products you purchase. The increased costs to the business resulting from the minimum wage increase should be absorbed by the consumer. This would be a direct effect of raising the minimum wage by about $3 in a short period. There are several things that complicate the situation... middle of the paper... y. Since this has not been the case, the government should consider an alternative plan to recover the minimum wage that is not so drastic for the small business owner. Works Cited Dunkelberg, William. “Why Raising the Minimum Wage Kills Jobs.” Forbes. Forbes Magazine, December 31, 2012. Web. February 01, 2014.Harrison, J.D. “Who Actually Creates Jobs: Startups, Small Businesses, or Large Corporations?” Washington Post. The Washington Post, May 6, 2013. Web. January 31, 2014.Hernandez, Sergio. "How would raising the minimum wage affect the economy? - The Week."The Week. THE WEEK Publications, Inc, February 21, 2013. Web. January 31, 2014. Saltsman, Michael. “Raising the minimum wage will not reduce poverty.” CNN. Cable News Network, January 1, 1970. Web. February 2, 2014. Wittner, Lawrence. “The minimum wage should be increased.” The Huffington Post. TheHuffingtonPost.com, November 10, 2013. Web. February 2. 2014.
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