The above graph demonstrates that an artificial or a forced increase in the minimum wage from its natural market equilibrium point will cause an increase in unemployment rates (quantity supply exceeds quantity demand).However, many politicians, labor unions, several activists group mostly support the idea of raising the minimum wage. Your humble instructor does not understand the rationales behind how a government or a third party can fixthe priceof a product or service in a market economy.

If this policy works then why shouldn't the government raise the wage immediately from $8.25 to $15/ hour? (Please, research outcomes in Seattle)

Have you recently been to McDonald's on the Chicago Ave. and State? Have you noticed those kioskavailable to place orders?* Is it a common trend in the fast food industry where machines takes over human workers? Therefore, higher minimum wages may be forcing companies to adopt to alternative means?

Does raising minimum wage hurt poor people (cost shifting, e.g. final price of Wonder bread goes up)?

Why a wage should or should not be left alone to the market to determine the equilibrium rate?