Minimum wage has stood at $7.25 an hour since the year 2009. In President Barack Obama’s most recent State of the Union address, he targeted the issue by saying, “Let’s declare that in the wealthiest nation on Earth, no one who works full time should have to live in poverty.” He has since urged Congress to raise the minimum wage to at least $9.80 an hour, but other Progressive Liberals are advocating a raise to nearly $15 an hour. On the surface, this idea seems positive and beneficial, but what are the unintended consequences of such a major action?

  Conservatives combat this issue with the idea that unemployment would undoubtedly increase as a result of an increased minimum wage. Studies from the Center for American Progress analyzed and concluded that in 35 cases where states raised the minimum wage during a period of high-unemployment, 60% of those states experienced a higher growth in unemployment than the national average.

  It is noted, however, that lower income workers have a smaller propensity to save and an increase in minimum wage to $15 an hour could pour nearly $450 billion into the economy.  Eric French, of the Chicago Federal Reserve Bank, said that “It’s true that minimum wage leads to more spending on the part of low-income works. But historically that spending has come out of increased borrowing, an avenue that may not be available in the context of today’s tight lending standards. Combine the increased unemployment and you get very murky projections on the benefits of such an increase.”

Students from around Potomac Falls had varying opinions on the issue.“I like the thought of raising minimum wage. But, I feel like businesses won’t hire as many people and the cost of food and merchandise will increase to reflect the increase in minimum wage,” said senior Emily Vayo.

Economists have concluded that while an increase in minimum wage would undoubtedly provide a stimulus to the economy, the rampant inflation to follow could hurt our economy more than help. “I would like the minimum wage to raised, but I also don’t want to lose my job. I think that if minimum wage were raised the value of the dollar would decrease,” said junior Jimmy Monge.

  An increase in minimum wage by nearly twice the current amount would lead to an immediate growth in unemployment. A forgotten factor in the wage system is the fact that supervisors and managers make more than their subordinates, therefore an increase in minimum wage would also be followed by an increase in their wages as well.

  “I’m not worried about the possible unemployment as a result of an increase in minimum wage. I think I’d still keep my job and I’d enjoy the extra money,” said junior Bernard Asare.

  Junior Jessie Voyack agrees. “I think an increase in minimum wage would be great. The possible unemployment would be sad, but I think it could be raised slightly without increasing unemployment.”