Minimum Wage Benefits

Throughout history there have been many ways that people are rewarded for providing a service. Later in the future this translated into people having jobs and working. People would work to provide themselves with basic living needs and maybe some extra expenses. However, both of those goals are only achieved with how much money a person is being paid. People that have high skilled jobs get paid way more than people with low skilled jobs. This seems unfair for the people with low skilled jobs, but to help them the United States government enforced a minimum wage to help these people have decent living conditions. The stance on a minimum wage system has been argued against many people throughout history because people cannot determine if it is …show more content…
This is great news for the workers because it brings multiple positive externalities. One of those is that it “removes financial stress and encourages education, resulting in better paying jobs.” That means that having a minimum wage can help the future economy by giving low income families the ability to send their children to college. When their children go to college it allows them to have a higher chance of obtaining a high skilled job in the labor force. Almost all high skilled jobs pay more than unskilled jobs. Raising the minimum wage can also promote further advancements in technology. This can help increase the United States’ economy by increasing work flow and creating new products that businesses can sell. Another positive externality is that the minimum wage creates is that it “increases the standard of living for the poorest and most vulnerable class in society and raises average.” That means that low income areas will slowly start to become middle class areas, and the people there will stop relying on government subsidies to provide them with basic living needs. Not only will it help the economy, but it will also help the community of people that are living there by making them feel safe because most dangerous activities happen in low income areas. This is also very helpful for the real estate economy because middle class …show more content…
All states are supposed to follow that rule, but individual states have the option to go past the minimum wage if they please to do so. In today’s world there are about “29 states with a minimum wage higher than the federal minimum.” Many people have argued if the minimum wage should be raised throughout the country to help people with low income. However, there are some economists have said that the negative externalities would outweigh the positive externalities. The first thing that would happen is that inflation would make the prices rise since there is now an increase of money flowing. If the prices increase than “consumers may demand a lesser quantity” of a certain product. This could potentially lead to stores going out of business. Other economist argue that we should make state-wide our minimum wages higher like the other countries do. They use that basis as an argument because countries with higher minimum wages have smaller populations of people in poverty. Another problem that could be fixed is the income inequality in the United States. “Families with income more than 6 times the poverty threshold would see their incomes fall” if the minimum wage was higher. This happens because those families are most likely business owners who need to pay their workers. If the workers get even more money than that means that they are closing the gap between wages from the lower class to the upper

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