Raising the Minimum Wage Over the years the minimum wage has been a talked about topic. Many people would see it as a great idea because it would help families financially. In reality raising the minimum wage would be more of a struggle rather than a gift. The minimum wage has always been a struggle for people. Many people think that raising the minimum wage will solve all of our problems, when in reality it will not. It would only reduce the human motivation. Raising the minimum wage would also eliminate jobs making the economy struggle more. There would not be enough money circulating through the economy. Raising the minimum wage would reduce human motivation, eliminate jobs, raise taxes, and make the economy go into a hyperinflation. Raising minimum wage will reduce human motivation. In a perfect world where everyone comes from a good home, and lives in society, where people are raised to strive for better. In today’s society we do not have the perfect world. We have children being raised up to where they have to find a job at a young age just to help support their family. Children being raised up in a home like this creates a loss of ambition. Imagine, only being a child getting a job at such a young age. The only thing on your mind is being able to support the family with the money that is coming in. Imagine fighting to get the education back that was lost. Imagine not being able to go to school because there is no more time or money to help out yourself. Then the day comes where everything is lost. The loss of ambition. The loss of education. The loss for hope. Now these children only know how to make ends meet. They want more, but they can’t have it. So raising minimum wage would create people staying in their own ways. They will chose a path that just suits their own needs rather than looking at a bigger picture for a long time success. Now a day’s most people want the dream job. They want the job that makes them happy so they do not have to work for the rest of their life. Dream jobs today require school and education to achieve that goal. If we were to raise the minimum wage it would create more opportunity for individuals to get the education they need to get the “dream job”. Right now these individuals have the motivation to go and get a better paying job, because the minimum wage is not making ends meet. If minimum wage were to increase then people would be able to go to school, but they would lose the motivation to go to school. The motivation to go to school would be lost, because the cash flow would be able to make ends meet to live. People will get caught up in the money working a 60 hour a week job, rather than looking at the bigger picture. The bigger picture would be to work less but make more money. Many people will say that is wrong, and that raising minimum wage will allow people to go forward and better their life. Some will say that a child coming from a low income home will want to be more than just a low income family. That individual will strive for more than what they are coming from. But how can they strive for more when they get caught up in the money? Children from lower income families will strive for more by seeking out help from other people. They will not rely on the minimum wage to go up. They will rely on student aid, grants, and scholarships to help better themselves for the longer term, only if minimum wage were stay the same would they rely on grants. If minimum wage were to go up most people would still barley qualify for grants because they would make too much money. Therefore the motivation that was there is now gone, and just became all about the money. Therefore raising minimum wage will reduce human motivation because people will get stuck in their ways, making the cost of living. They will not go out of their way to work harder than they have to, to make just a little more money for an actual career. Human motivation is not the only reason why the minimum wage should not be increased. Raising the minimum wage will raise taxes for all Americans. Minimum wage will raise taxes because people will be making more money than they are now. This means that more taxes will be taken out of your check. Taxes will rise because since minimum wage is rising, prices will go up creating in more expensive items. From CNN Jason owns five little learners academy In New Jersey. The minimum wage went up from $7.25 to $8.25. Jason explains how there were hidden taxes along with raising the minimum wage. Jason says that raising the minimum wage added an extra 10.5% to the payroll expense. So raising the minimum wage may not affect the individual them self, but from the business stand point it sure adds an extra amount to the payroll. Now many people will say that prices going up is just a part of the situation, and that everything should even out just fine. This is because prices right now are set to fit the minimum wage now, so raising minimum wage will raise the prices, but it will be equivalent to the prices now. So then why even raise minimum wage? Jason began to explain that he is afraid that his vendors are going to raise the prices, because vendors pay hourly. Jason becomes fear full that the vendors will escape the cost onto the business owners. Most people will think that if everyone has to raise their prices including employers, then this will create an effect that will just stay the same now. That is not the case though. The only companies who will raise their hourly are the ones that have to. Americans that have above minimum wage jobs will not get the raise they need to keep living the way they do in the economy now. So raising minimum wage will benefit for the lower class, but the middle class will take a hit. Along with taxes rising raising taxes, the use of welfare spending will increase. Ideally raising minimum should have an effect on lower income families by making them come out of the poverty level, meaning they would not need the use of welfare. Now what happens though is that the millions of Americans who lost their job because of raising wages, are now going to become part of the low income bracket and may even become out of income. So the few Americans that get off welfare, there will be a million more coming onto it. This is why taxes will rise to help support more welfare funding. This is also why welfare spending will increase because more people will be on welfare. I mean let’s face it minimum wage was raised to $10.10 an hour and you work forty hours a week that would equal out to 404 dollars a week before taxes. This means on average you will make maybe $20,000 annually. Now I don’t know about you, but $20,000 is hard to support yourself on, even if it is supporting only yourself. In reality though most of these people working minimum wage jobs have families, and these families will still need government assistants. This means that more people will be on welfare. Lastly, raising minimum wage will make the economy go into hyperinflation. Earlier I talked about how raising minimum wage would create a distress for the economy, and how prices will rise along with wages rising equaling out to minimum wage not even rising at all. For some people yes that is the case, mostly for the rich and the lower income families that are so excited for their pay raise. The people who will hurt the most are the middle class people. These are the people that have the biggest effect on the economy because they are the ones that are able to afford not only the things they need, but the things they want. The middle class is constantly putting money in and out of the economy. The economy will soon go into a hyperinflation when minimum wage rises because companies that are already paying more minimum wage will not give their employees a raise to aside with the minimum wage increase. This is when the middle class comes in again because since they will not be getting a pay raise, they have to cut their spending habits. This means less money being put into the economy. On the other side many people believe that since welfare spending is up then it should take away the risk for hyperinflation. That cannot be the case because welfare is funded through the American’s tax dollars meaning that welfare spending creates no new money being put in the economy. It will be the same money circulating throughout. This creates a bad economy and hyperinflation. In conclusion, raising minimum wage is a bad idea because minimum wage is suppose to be a job for a stepping stone. They are jobs for the just starting out people and maybe the retired people. These jobs are not suppose to be carrer jobs that you stay at twenty or more years. That’s why raising minimum wage will reduce human motivation. Raising the minimum wage will raise taxes and welfare spending, and cause the economy to go into a hyperinflation because no new money will be circulated around the economy. So just remember minimum wage jobs are a stepping stone. Americans need to look at the bigger picture in life rather than just be in the now wanting more money. The money will come later if you put hard work in.