"It is estimated that less than 15% of the total increase in wages resulting from an increase in the minimum will go to people below the poverty line and less than a third of those receiving the minimum wage are families below the poverty line. Most minimum wage workers are from above median income families." So, most of the people benefiting from the minimum wage are not the intended targets of the “anti-poverty” aspect of raising the minimum wage. This is a direct quote from Forbes.com and usnews.com agrees. They say " Minimum wage workers tend be young and unskilled. Less than half of workers under the age of 25 are currently employed and many rely on low paying opportunities to get their first break." Worrying about the "poor people" is where raising minimum wage is supposed to hold its concerns. If you won't benefit the majority of people below the poverty line where is the desire to have it. The risk it brings such as raising prices on a lot of daily things, lowering the value of the dollar, and driving our country into worse debt.
According to truth-out.org "Even the higher estimate of a 0.4 percent rise in price level with a 10 percent minimum wage hike suggests that a typical COLA adjustment to the minimum wage rate would only push up the price level by 0.1 percent. Recall that this amounts to adding just one dime to a $100 price tag." This is the risk of inflation if we were to hire the minimum wage.
Sources:
-http://www.usnews.com/opinion/blogs/economic-intelligence/2013/03/11/raising-the-minimum-wage-wont-help-the-poor
-http://truth-out.org/news/item/14050
-http://www.forbes.com/sites/williamdunkelberg/2012/12/31/why-raising-the-minimum-wage-kills-jobs/
According to truth-out.org "Even the higher estimate of a 0.4 percent rise in price level with a 10 percent minimum wage hike suggests that a typical COLA adjustment to the minimum wage rate would only push up the price level by 0.1 percent. Recall that this amounts to adding just one dime to a $100 price tag." This is the risk of inflation if we were to hire the minimum wage.
Sources:
-http://www.usnews.com/opinion/blogs/economic-intelligence/2013/03/11/raising-the-minimum-wage-wont-help-the-poor
-http://truth-out.org/news/item/14050
-http://www.forbes.com/sites/williamdunkelberg/2012/12/31/why-raising-the-minimum-wage-kills-jobs/
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