Topic > Minimum Wage: Impact on Jobs and the Economy

In my short life, I have worked two minimum wage jobs. My first job was as a fry cook at Chick Fil-a when I was 16, and my second and current job is at Sports Authority. The minimum wage is defined as “the lowest amount that employers can offer their employees for each hour of work”. As minimum wage jobs, they were seen, in my case at least, as a way to get some extra pocket change and gas money. And that's how most Americans view jobs like fast food: as a place where teens can make money throughout high school and college and maybe even learn the value of a dollar. The minimum wage was originally established to reduce poverty. It was also invented to eliminate sweatshops and companies that do not pay minors and others a fair wage. Some politicians may believe that companies simply absorb the costs of the minimum wage through reduced profits, but this is rarely the case. Instead, businesses respond rationally to these obligations by cutting employment and making other decisions to maintain their net profits. These behavioral responses usually offset the positive labor market outcomes that policymakers hope for.” “The positive labor market outcomes that policymakers hope for” are points like “Raising the minimum wage encourages harder workers” and that an increase will “stimulate the economy by putting more money in the hands of employees so they can spend more ”. ” which however cannot be done with inflation, because everything continues to become more expensive. Another downside to raising the minimum wage is that the value of even a minimum wage job increases, meaning employers will seek much more output from employees. Right now, the minimum wage mandated by the United States is $7.25. Even the least skilled worker can find work at a McDonald's, Burger King or other restaurants. However, with an increase in the minimum wage, as I said earlier about quality over quantity, employers will be looking for better quality workers and will have much higher standards for who they bring into the company. An increase in the minimum wage to $10.10, which is the current proposal nationwide, would see the value of a job increase, even that of a chef, and that's a problem for unskilled workers.