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Minimum wage increase: an evaluation of its social and economic impact
When it comes to minimum wage it is a complex subject to grasp, since it affects everyone and the economy as a whole. Even economist’s perspectives vary amongst them on the effect that raising the minimum wage has on society. For example, some economist states that many people have the misconception that when the minimum wage goes up that they will be jobless. Meanwhile other economist argue that raising the minimum is essential, since it closes the wide gap between the rich and the poor. It also gives them an opportunity to have higher possibilities of living above the poverty line. Throughout the 51 states in the United States the minimum wage varies in the sense that some states minimum wage is still at $7.25 an hour; however, there are states that have their minimum wage as high as 15 dollars. It goes to show that depending on the particular state that what may work for one may not work for the others. This study analyzed the outcomes and impact of raising the minimum wage every year until 2021 in California. Despite both sides point of view this analysis was to give an overview of the causes and effects of minimum wage. Lastly, summative recommendations were made based on the analysis. The following three essential outcomes were examined: the cost of goods and services impact; private and public sector; and income equality and inequality. Based on my analysis it is recommended that the minimum wage to continue to be increased as necessary as there were no studies or statist supporting the negative impact minimum wage has particular in the three outcomes: the cost of goods and services impact; private and public sector; and income equality and inequality that were examined. Conducting additional research for a general sample earning minimum wage would provide more accurate results and unbiased results. As of now, there is not enough unbiased study clarify such a huge impact these to variables have.
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