While some believe raising the minimum wage will solve the problems of poverty and lack of pay with the signing of legislation, raising the minimum wage to $10.10 a 'now (as argued by President Obama and Democrats) would make the poverty problem worse than it already is; Inflation would occur, employees would be laid off, and minimum wage employees would lose social benefits, thus offsetting the wage increase. The government should consider the effects on the American economy as a whole, instead of just looking at the wages some individuals are paid. While some might argue that raising the minimum wage would ensure a “living wage,” raising the minimum wage would lead to significant inflation, which, in turn, would raise the cost of living; offset any salary increases. According to the Wall Street Journal, economists struggle to determine whether “minimum wages” (e.g. the federal minimum wage) stimulate or suppress economic/job growth (Morath). However, the views of those who favor a minimum wage increase are incomparable to business reactions to both the enactment of minimum wage legislation and the discussion of minimum wage legislation (i.e., legislation that increases the wage minimum). For example, in response to California raising its minimum wage to $10.10 an hour by 2016, fast food chain Jack in the Box announced it would “raise menu prices by 1, 4% in California alone or just under 1% across all its restaurants.' To put that figure in perspective, the Cheesecake Factory announced that among its California restaurants (which represent one-fifth of its total restaurants), it expects to sustain two to three...half of the paper...wage increases minimum is not in their interest. Works Cited by the Congressional Budget Office. “The Effects of a Minimum Wage Increase on Employment and Family Income.” Congressional Budget Office, February 18, 2014. Web. April 22, 2014. Morath, Eric. "Should the minimum wage be raised? Economists weigh in." The Wall Street Journal. Dow Jones & Company, January 30, 2014. Web. April 23, 2014. Sherk, James. “What is the minimum wage: Its history and effects on the economy.” The Heritage Foundation. The Heritage Foundation, 26 June 2013. Web. 22 April 2014. Tull, Tony and Mark Segraves. “Walmart says it will leave DC unless mayor vetoes wage bill.” NBC4Washington. NBCUniversal Media, LLC, July 12, 2013. Web. May 27, 2014. Wong, Venessa. “When the minimum wage goes up, so does the price of the menu.” Businessweek.com (2014): 1. Business Source Premier. Network. April 22. 2014.