The minimum wage increased to $7.25 on July 24th. However, many are questioning whether this will be a boost to workers considering the current economic climate. Some economists are arguing that this is another stimulus for the economy. But is it really? Consider that many states have their own minimum wage requirements. Employers are required to pay whichever is higher. For workers in a state that is already at the minimum wage rate of $7.25, this is not exactly a stimulus. On the other side of this argument are economists who claim that increasing the minimum wage will create fewer jobs for workers. The argument behind this is that many companies can’t even afford to keep the current employees that they have. With the increase in the minimum wage, these companies are being forced to pay their workers more and they don’t even have the money to do it. What are your thoughts on this minimum wage argument?
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