Minimum Wage

       I am against raising minimum wage to $9.00 in the United States. I negate the idea because of two simple reasons, small businesses and unemployment. A raise in minimum wage will cause even more of a determent to these two important topics.
      In America there are 23 million small businesses according to the U.S. Small Business Administration. Raising minimum wage will put more economic strain on the American small business. "The timing for increasing labor costs is poor right now, particularly when so many small businesses are still struggling to recover, says Molly Brogan, spokeswoman for the National Small Business Association, which opposes the proposed legislation. “We’re particularly wary in a difficult economy. When you’re faced with 10 employees in a low-profit business such as a hardware store, what you’ll have to do is put your money into increasing wages and any new hiring will be suppressed,” she says." From Bloomberg Businessweek. The increase in pay would be too much of a cross to bear for these businesses. It will increase the payroll which in turn would cause lay offs, full time employees being reduces to part time employees, and even may cause the failure of a business completely. "Research published in the Southern Economic Journal from economists at Cornell and American Universities have estimated that a minimum wage hike proposed by the President “would eliminate at least 467,000 jobs,” the EPI notes. “The study also found that the higher minimum wage would not reduce poverty, as a majority of beneficiaries live in households with incomes about the poverty level.”" According to FOX news. 

       The unemployment rate in America is currently 7.3%. Raising minimum wage would make this percentage spike. Layoffs, cut backs in hours, and closing of businesses will cause loss of jobs and hours. This would also effect employees because of loss of benefits that employers may no longer be able to afford for them. 



http://www.minimum-wage.us/176/my-employer-is-mis-classifying-me-in-order-to-pay-me-lower-wages/
http://www.foxbusiness.com/economy/2013/02/13/higher-minimum-wage-higher-unemployment/