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Is a higher minimum wage good for the US?

After the Democrat`s wins in the mid term elections, it seems more and more likely that the minimum wage will be raised. But experts are divided on the wisdom of such a move. Currently, the minimum wage stands at $5.15 per hour, meaning that a full time worker at this salary ends up with just a little bit more than the poverty line. It is no wonder that it seems compassionate to include a wage rise for the worst paid in anyone`s agenda. But it`s easy to forget that such a raise would almost certainly result in job loss for many workers as well as a slowdown in the creation of new ones as businesses can`t afford to hire anymore. Especially the large restaurant sector and small businesses will be hurt by a rise.

On top of that, the economy is not at its best: the slump in house prices, which is far from over, has had a negative effect on the economy as a whole. Economists agree that a raise of the minimum wage would increase inflation and unemployment, but many are divided over whether such an increase would be big enough to make itself felt.

In fact, we will start seeing the reality of a raise in the minimum wage soon as 29 states have already decided to raise the wage over the national level. And in the 6 states that have already adopted a higher minimum wage, indicators show that business growth was actually higher than in states with the federal minimum wage. In any case, many feel that it`s about time for the government to take better care of the citizens at the lower rungs of the income ladder.