The current minimum wage for most states in the US is $7.25. An increase in minimum wage would most likely benefit families with higher income. Some low-income workers may have a rise in incomes, however, as stated by Neumark (2021) there are conflicting individual studies of the effects of minimum wages on employment. Increasing the minimum wage would have a more negative effect in helping working class citizens. After researching this topic across many platforms more economists and studies have shown that increasing minimum wage would do more harm than good. According to Wilson (2012) "minimum wages affect opportunities for low-skill workers, youth, and minorities, which are primarily the groups that policy makers often try to help", (Para.1). A recent Congressional Budget Office report showed that increasing minimum wage from $7.25 an hour to $15 an hour had a 107% increase in income and 16% decline in low-skilled employment (Neumark, 2021). Increasing minimum wage cuts jobs for low-skilled workers because the jobs would be forced to reduce hiring, cutting employees work hours, reducing benefits, and charging higher prices to make up for the increase in pay to their employees. Prices of most goods and services would be increased because companies would have to maintain their net earnings. Although many studies have shown that minimum wage does not affect job losses there should be a focus on other policies that are more helpful in generating a faster growth rate within the economy to help all working-class citizens.

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In response to the post above it is important to note that the effects of increasing the minimum wage are a topic of ongoing debate among economists a... View the full answer