Topic > Macroeconomics: Should the minimum wage be increased? - 809

Macroeconomics is the study of the behavior of an economy at the aggregate level. Macroeconomics considers the industrial sector, the service sector or the agricultural sector, but not specific parts of any of these sectors. Factor studies might include inflation, unemployment, and industrial production, often focusing on the effect of government policy on these factors. This brings me to an article I read in Businessweek titled Making the Economic Case for More Than the Minimum Wage, written by Peter Coy on February 13, 2014. The article begins by talking about President Obama's 2014 State of the Union address which called for an increase in the minimum wage to $10.10 an hour. There was also a reference in the 2013 State of the Union address, but at the time it was about raising the minimum wage to $9 an hour. Where do these numbers really come from? Are they arbitrary or is there an economic logic? The minimum wage has been on political agendas and debated for several years. The current minimum wage was set in 2009. Setting a minimum wage and raising the minimum wage, many believe, is the action of “big government” and many Americans are afraid of “Big Brother government.” A December 2013 Washington Post poll found that two-thirds of Americans in fact support an increase in the minimum wage. So the real question is: what is the correct number? What is the fairest way for the United States to get to this mystical number? To be fair it should be free from prejudice, dishonesty or injustice. I'm not sure our elected officials would be able to come up with anything legitimately sought, pursued, and done that would be considered "right." Coy went on to say that “the first minimum wage was 25¢......half the paper......d to raise and support a family? When I worked at minimum wage, I wanted to do better, I wanted to have a family. When my daughter was born, I needed to earn more money and I did what I had to do. Why do we as a country believe that raising the minimum wage is the answer? When we discuss lows in other aspects of life, no one accepts that they are the good. The minimum is the base and if you want to raise and support a family you need to be at the median or middle level, not the minimum wage level. The article addresses two approaches to reducing the influence of the minimum wage. The upside was to increase economic and trade growth which would create greater demand for workers. The negative side is the direction we are following, which is the decrease in workers and the increase in their skills. While the minimum wage is a political issue, perhaps we should focus less on one number and focus more on growing our economy.