I’m writing this letter to call attention to the issue of why the federal minimum wage should stay the same. I would like to outline a few reasons as to why this is an issue of concern that should be addressed.
To raise minimum wage would be a complete illogical move by the government. The history of raising minimum wage is an absolute disaster. All of the reasons to raise the wage can be countered by several pieces of evidence. The 2012 Wilson review noted: A 2004 “review of more than 20 minimum wage studies looking at price effects found that a 10 percent increase in the U.S. minimum wage raises food prices by up to 4 percent.” The 2012 Wilson review noted: “One recent academic study found that both state and federal minimum wage increases between 2003 and 2007 had no effect on state poverty rates. Also, William Wascher found that about about two-thirds found negative impacts from raising minimum wage.
The pros outweigh the cons heavily, a 2007 study from the Federal Reserve Bank of Chicago found that even restaurant prices increase in response to minimum wage increases. When the government raises the minimum wage, there is someone being impacted negatively. In this case, the middle class is forced to pay more for basic consumer goods. This effect shows that raising minimum wage results in increased spending for the middle class, solely impacting the lower class in positive ways.
When it comes to minimum wage, the government completely disregards the middle class. Many people experience significant hardships when the minimum wage is increased. Purchasing basic items for more adds up in the long run. The government needs to understand that raising minimum wage has way more negative impacts in society than positive. Many workers who have jobs and are earning minimum wage are laid off. In 2010, Joseph Sabia and Richard Burkhauser estimated: “nearly 1.3 million jobs will be lost if the federal minimum wage is increased to $9.50 per hour.” The government needs to be aware of the impact of raising minimum wage has on society as a whole.