Circular Flow: Increasing Minimum Wage

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Circular Flow is the strategy to make a living among the citizens of the U.S. The circular flow consists of the government, business and household. It show the strategic way of making money and being able to use it for companies and have each branch be stable. The money made from the government, goes to business, and the household and provide for their family. The raise in minimum wage would deeply have an effect on how circular flow an about how the companies and branch are stable. If businesses owners have to pay more to the workers who are unskilled and not an actual career then eventually won't have enough money to provide for the families and households. The circular flow is very critical to have a stable economy and any disturbance can …show more content…
Minimum wage is currently $7.50 for any job excluding higher professional jobs. Increasing minimum wages according to, “Sanderson said a minimum wage of $10.10 per hour might not only attract more qualified workers who would block out less-skilled candidates, it could lure young people out of high school and into jobs that — while low-paying — would be more appealing than ones at the current $7.25 per hour.” People would be willing to join any job whether if it skillfully or not just for money. Jobs such as a fast food restaurant worker can end up with a yearly salary of someone who works as a starting therapist and or sanitation worker. With such a high skary many other employers would find it difficult to work and get their end met. Increasing minimum wage would also cause unemployment to increase a lot. As it state sin the article, “A loss of jobs, as predicted by a recent Congressional Budget Office report, which forecast that total U.S. employment could be reduced by 500,000 jobs.” Many small businesses wouldn't have enough money to spend of workers and have them attain the above minimum salary without going out of businesses or cutting people off. This can cause “...employers to pay employees more than their work is worth to employers, then employers will either refrain from hiring the potential …show more content…
As its states in the article “The recent Congressional Budget Office report on the minimum wage estimates that an increase to $10.10 per hour would boost the weekly earnings of 16.5 million low-wage workers and bring 900,000 people above the poverty line.”With an increase in the salary poverty would decrease a lot more and people would actually have a job along with an identity. With a bigger salary the lives of individuals would increase causing them to be more stable and appreciated. The standards of a household would increase causing businesses to be more stable and the government to actually continue to provide for the people. As it state sin the article, “Based on tabulations from the Council of Economic Advisers (CEA), it would benefit 28 million workers, giving them a little bit more breathing room and peace of mind.” With an increase in the minimum wage workers would have a just balance between the products prices that are going up and how to offer for them. Every household item price increases but with a minimum wage of $7.25 and a yearly salary sometimes below $20,000 it's difficult to offer for the family and to keep it going. The current minimum wage has been in place since 2009 and while there is a decrease in jobs and payment the prices for everything else is increasing. Another benefit that comes with increasing the minimum
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