Raising the minimum wage has been an ongoing debate in our country, especially over the last few months. Although states like Michigan have voted for the increase, the current battle is in the fast food industry.
Recently, McDonalds workers have been protesting for a $15 minimum wage, which has critics raving about its absurdity.
They argue that by raising the minimum wage, you would be paying $5 for a BigMac, we would break the backbones of businesses, and job rates would plummet.
The numbers, on the other hand, tell a completely different story.
ABC news reported that raising the minimum wage to $15 would only raise big Mac prices 68 cents, a much more realistic increase.
However, raising the price of America’s favorite burger pales in comparison to the other argument: that raising minimum wage would break our economy.
While this seems plausible in theory, and horrific to our capitalist ideals, this is not something we see in places where minimum wage has actually been increased.
Several studies, such as one published by the Associated Press, found that in the 13 states that boosted their minimum wage, the job growth rate was 0.85 percent, significantly higher than the 0.61 percent of the other 37 states that didn’t boost their minimum wage.
Another study from the Progressive Public Policy corporation DEMOS reported that if retailers increased wages significantly, it could create up to 10,000 more or new jobs.
So surprisingly, what we have considered a last-chance option may actually be a great way to jumpstart the economy.
This has a lot to do with people earning minimum wage barely able to buy anything, since the wages value has decreased to where it was in 1998. So much for a land of progress.
While there is always a risk by increasing the minimum wage, the progress we have made so far make it a worthwhile risk to take.