minimum wage raising is bad

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According to a California poll, boosting the minimum wage margin is bad for the economy. It lifts wages through a large population, resulting in a rise in poverty (Dunkelberg, 2012). As a result, the vulnerable remain impoverished because the rise only affects jobs. Furthermore, the programs only help those who earn salaries and do not actually benefit the needy. As a result, while raising the minimum wage is said to benefit low-income jobs, it is not an efficient method of combating poverty (Dunkelberg, 2012).

Similarly, raising pay wages is thought to result in job losses and, as a result, a rise in unemployment rates. A study done 2009 with a 10.6% rise in minimum wage, indicated a loss of almost 600000 employment for the teenagers (Dube, Lester & Reich, 2010). Though there was a 4% growth in the economy, there was a rise in the price of items sold affecting those below the poverty levels. The rates of unemployment are especially for those that are relatively unskilled since their services are shed off to cater for the pay rise of the others (Dunkelberg, 2012). On the other hand, the economy of the country is affected by the money that is used to raise the wages is derived from the pockets of other individuals (Dube, Lester & Reich, 2010). The customers and the small business owners provide the money used to raise the wages o the employees. As such, the price of commodities in increased to accommodate the all the workers without considering those who stay at home and the have-nots. Also, raising the minimum wage denies those with little skills the opportunity to be employed and also receive on the job training (Dube, Lester & Reich, 2010). The rise will thus affect many sectors of the economy in various ways.


Dube, A., Lester, T. W., & Reich, M. (2010). Minimum wage effects across state borders: Estimates using contiguous counties. The review of economics and statistics, 92(4), 945-964.

Dunkelberg, W. (2012). Why Raising The Minimum Wage Kills Jobs. Forbes. Forbes Magazine, 31.

November 17, 2022


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