A sensitive topic for many Americans is their income. Many people's income depends on the minimum wage. In 2012, 3.6 million people received hourly wages at or below the minimum wage. There is an ongoing debate within the government about what the minimum wage should be. Stuck at $7.25, Obama suggested raising the minimum wage to $9.00. Depending on one's point of view, increasing the minimum wage can be positive or negative. The minimum wage has the ability to change lives and change the economy. Small businesses and unemployment, teenage demographics and the cost of civilian goods would be most affected. The only mystery is whether things would change for better or worse. Many areas could be affected by a change in the minimum wage, but potentially the most drastic change would be unemployment. Supporters of a higher minimum wage insist that an increase would significantly lower the U.S. unemployment rate and improve quality of life. However, there are conflicting opinions on this subject. A higher minimum wage would lead to higher labor costs for business owners, making it harder for employers to maintain the number of workers they have, let alone hire new employees. Raising the minimum wage does not increase the value of the worker's work; this increases the labor cost of the worker. Generally, the more expensive something is, the less people will buy it. This is true not only for consumer goods, but also for workers in the labor market. Many jobs come from large companies, but also from small companies. There are 23 million small businesses in America, accounting for 54% of sales and 55% of jobs. Raising the minimum wage means all these corporations and businesses will have to dig deeper...... middle of paper...... these small businesses would not be able to afford to pay that many employees. By raising the minimum wage, many teenagers and others who rely on these jobs as their sole source of income could potentially find themselves unemployed. These people would no longer be able to purchase the items they want or need. Businesses would have to increase the price of consumer goods to compensate for the higher cost of staff. Businesses could potentially lose customers who have lost their jobs and are unable to afford the company's services. Raising the minimum wage would have a domino effect on the economy, leading from one negative thing to another. Works Cited http://www.dol.gov/whd/minimumwage.htm http://www.nytimes.com/2013/02/13/us/politics/obama-pushes-for-increase-in-federal-minimum -wage.html?pagewanted=all&_r=0 http://www.salary.com/increasing-the-minimum-wage-pros- disadvantages/