The focus of the article stays along the line of what certain causes a change in the
minimum wage would result in. It looks at several different perspectives as well as a what
would happen after a year or so of the increase from an economic standpoint.
The article starts off with the basic reason why people are against raising minimum wage,
which is that it kills jobs by making works more expensive to hire. They go on to the
opposite side of the argument and state that some say a higher minimum wage creates jobs.
This leads to the macroeconomic issues being addressed, could minimum wage being
raised act as a type of economic stimulus. In short they believe that the increase money
from the raise to the lower and middle class workers will go right back into the economy
with the increased consumer spending from them. It’s also stated that with the increase in
wages this would cause prices to go up (inflation), but the worst being that after a year or
so the money put back into the economy would be significantly less due to consumer debt
increasing with the rise in wages enabling them to obtain loans for cars and such. The
authors opinion is definitely against a minimum wage increase. They agree that it would be
a temporary stimulus for a year or so, but will become a drag on the economy after.
This article has a good amount of normative arguments. The first one being that raising
minimum wage a certain amount should in turn boost economic spending from those with
