One of the countries with proclaimed most robust economy, the United States, has a minimum hourly wage equal to $7.25 per hour and numerous critics are arguing over whether the minimum wage should be increased. The increase will certainly be applauded by blue collars workers and will help them get out of their povery crises in a way. However, small business owners, considered the driving force behind the US economy, are not too happy with the proposed change. Most of them believe that they would not be able to afford to pay much higher than what they currently do. Otherwise, if the proposed change comes into effect, some of them may total go out of business due to suddenly increased, dramatic expenses.
According to the Congressional Budget Office, the raise of the federal minimal wage targeted to hit %10.10 will ''save'' numerous people from poverty and will alleviate their financial struggles. However, the same proposal may result in the loss of more than 500,000 jobs.
Minimal wage increase advocates say that despite the minimal wage increase, cities where this has taken effect such as San Francisco and Washington state, still enjoy high regular jobs increases on the market.
"It defies the conventional wisdom of many business lobbies who predict economic catastrophe," says Joshua Welter, from Main Street Alliance, an organization that advocates the minimal wage raise.
Washington and Seattle has had amazing minimal wage raises, and the Seattle's mayor has insisted that the minimal wage would increase up to $15.
"Washington is an attractive place for business, because of its quality of life and entrepreneurial spirit," Eric Shannon, a director of the Center for Small Business has announced. That is why it's very important to evaluate whether the minimal wage would also affect the econom in a negative way.
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