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Minimum Wage Hikes and Their Unintended Effects
Mark C. Jellema
Economics, Tri-County Technical College
Eco 211: Microeconomics
April 19, 2021
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Abstract
This paper examines the unintended consequences of minimum wage hikes on the economy,
business, and individual levels. Recent years have seen a drastic increase in support for often
unrealistic increases in minimum wages. I examine studies that illustrate many of the problems
associated with minimum wage increases and problems that arose in historical situations.
Extreme minimum wage hikes are often supported by those who do not fully understand the
potential short- and long-term effects on their careers. The research I completed on this topic
elucidated the need for care when changing laws that could affect millions and even crash the
economy in extreme cases. As with anything policy-related, the debate is healthy because of the
hefty consequences of poor judgment on the economy. Examining such a topic with factual
research and statistics is the only way a clear judgment should be made one way or the other.
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Minimum Wage Hikes and Their Unintended Effects
Minimum wage hikes have been a topic for heated debate in recent memory. These
disagreements are often emotionally charged, with proponents using personal anecdotes to pose
as facts. As economics is a science, and science by nature has no room for emotion, we must
dispel these detrimental conversations and focus on factual analysis backed by sound research.
Decisions that affect the well-being of individuals, businesses, and the economy must not allow
for personal bias no matter its origin. The general intent of minimum wage hikes is to support the
impoverished, which is a noble motivation. However, good intentions do not guarantee good
outcomes. The possible adverse side effects on the individual, the business, and the economy
must be methodically investigated and weighed to ensure a solution that will ensure the highest
