While some believe that raising the minimum wage will solve the problems of poverty and lack of wages with the signing of legislation, increasing the minimum wage to $10.10 an hour (as advocated by President Obama and the Democrats) would make the problem of poverty even worse than it already is; inflation would occur, employees would be laid off, and minimum wage employees would lose their welfare benefits, thus negating the wage increase. The government should consider the effects on the U.S. economy as a whole, rather than just considering what certain people are paid. Although some might argue that an increase in the minimum wage would ensure a "living wage", raising the minimum wage would cause significant inflation, which would, in turn, increase the cost of living; compensating for any salary increase. According to the Wall Street Journal, economists struggle to agree on whether "wage floors" (e.g. the federal minimum wage) boost or suppress economic and job growth (Morath). However, the perspective of those in favor of increasing the minimum wage is incomparable to business reactions to both the passage of minimum wage legislation and discussions of minimum wage legislation (c 'i.e. legislation increasing the minimum wage). For example, in response to California's minimum wage increase to $10.10 per hour by 2016, fast food chain Jack in the Box announced that it would "increase menu prices by 1.4 percent in California alone, or just under one percent.” in all its restaurants. To put that amount in perspective, the Cheesecake Factory announced that among its California restaurants (accounting for one-fifth of its total restaurants), it expects to maintain a ratio of two to three......paper average. ..... increasing the minimum wage is not in their best interest. Works Cited Congressional Budget Office. “The effects of an increase in the minimum wage on employment and family income”. Congressional Budget Office, February 18, 2014. Web. April 22, 2014. Morath, Eric. “Should we increase the minimum wage? Economists have their say. » The Wall Street Journal. Dow Jones & Company, January 30, 2014. Web. April 23, 2014. Sherk, James. “What is the minimum wage: its history and its effects on the economy.” The Heritage Foundation. The Heritage Foundation, June 26, 2013. Web. April 22, 2014.Tull, Tony and Mark Segraves. "Walmart says it will leave DC unless mayor opposes wage bill." NBC4 Washington. NBCUniversal Media, LLC, July 12, 2013. Web. May 27, 2014. Wong, Venessa. “When the minimum wage increases, the price of the menu also increases.” Businessweek.com (2014): 1. Business Source Premier. Internet. April 22. 2014.