Right now, there is legislation awaiting approval that would raise the national minimum wage rate to $10.10 in the next two years. It seems that minimum wage is on everyone’s mind and the holiday season has prompted concerns, and outreach in some instances, over the low hourly pay issued by some major retailers. And while many are quick to base their argument for raising minimum wage on the fight to uphold the rights of employees, others suggest looking at the issue from a purely economic standpoint.
Experts on both sides of the issue have valid reasons for debating whether or not the national minimum wage rate should be increased. There is evidence to suggest that the prospect is neither a miracle nor a curse to the economy though. One economist recently noted how the labor market can actually benefit from raising wages, even though it was once believed that the opposite was true. Furthermore, some have recently raised concerns over the effect low wages have had on social services like government-subsidized programs.