The numbers could be substantially higher if companies made a major move toward outsourcing more jobs to less expensive labor markets outside the country.
One potential negative impact that is less readily apparent is the possibility that a higher minimum wage would result in increased labor market competition for minimum wage jobs.
Some proponents of raising the minimum wage estimate a much larger number of individuals and families escaping poverty.
A related potential benefit is a projected reduction in the need for federal and state government expenditures on financial aid for poor and low-income individuals.
Increased prices mean a general increase in the cost of living that could essentially negate any advantage gained by workers having more dollars in their pockets.
Should Minimum Wage Be Raised Essay
Another projected problem resulting from an increased minimum wage is that of potential job losses.Increasing employee morale could easily translate into more tangible benefits, such as increased employee retention and reduced hiring and training costs.Employees who are more inclined to stay with a company longer could benefit from greater advancement, and from an overall reduction in job-related relocation expenses.The debate over raising the federal minimum wage level continues on in 2016, with some proposals pegging the suggested minimum at an hour, and others aiming substantially higher at an hour, a level that has already been implemented by the city of Seattle.There are not strong arguments both for and against an increase, and the arguments regarding the pros and cons of raising the minimum wage appear to get more heated as the suggested minimum wage level rises.For some time now, national debate has centered around whether or not to raise the federal minimum wage. Former President Obama advocated for gradually raising the minimum wage to about an hour.Recently, the Congressional Budget Office reported, that both sides of the debate held some merit, as there are benefits and some drawbacks to raising the minimum wage.The main upside or benefit from raising the minimum wage, the CBO found was that raising the wage to about .10 per hour, could lift as many as 900,000 people out of poverty.These numbers come from looking at the current poverty rates of low wage workers, in particular.These are major benefits, especially when we consider the economy that is still struggling to recover. While raising the minimum wage has some upside, there are also potential downfalls.The main potential negative impact of raising the minimum wage is the loss of close to 500,000 jobs, which comes out to around 0.3% decrease in employment.