Minimum Wage is it Good or Bad

The exemplary dedication of the US government to clean up the dirt around the world is deplorable in more than one way, and more so especially when that it forgets to sweep its own backyard.

In the month of August President Obama got his way when an 11-page report was released which laid open the efforts undertaken by the concerned authorities and parties to raise the minimum wage to $10.10 an hour. At his State of the Union address in 2013 President Barack Obama had demanded for the boost, but in our political culture if one says water the other says wine; minimum wage is another one which wakes up sleeping dogs to discuss whether they are actually required.
But is President Obama actually making bets in a burning house? There are many who would find it bang on, at least President and CEO of the Pennsylvania Chamber of Business and Industry, Gene Barr an authoritative figure in the state agrees. He claims the better way for the government to help the low-income communities would be to initiate steps like hike in federal Earned Income Tax Credit. That aside, according to Barr raising minimum wage wouldn’t help those in most need of a hike, and he rather stressed on raising the skill set of the workforce to makes them competent at work. It is certainly not beneficial for those who are just trying to break the ice.

The city council of Seattle has taken one step further and voted the hike of minimum wage to $15 an hour, and once it goes live Seattle will become the first state in America to claim being an exceptional Santa for its countless workers. The state is out with a hurry to do it as well, it may be a carrot for few but what about the stick it gives to the businesses. They big ones are the first to face the wrath of this law, especially those who have not provided health plans to their employees. While those who have offered health plans to their employees, their culling is stalled till 2018.

Contrary to common belief among the poor masses, which 2 out of 3 support the concept of minimum wages, it may not after all be the correct perception. It was not the best thing to happen to the working class when the act was first conceived in 1938 and neither it is now. An economist will agree that the ceiling of prices can create either shortage or excess of commodity in a market. If the price of $10 or $15 seems staggering for the hirers and not viable for their business they will not hire. Unemployment rates are likely to shoot up. Rafael Cruz a conservative activist argues that minimum wage laws instigate unemployment rates in the black community especially.