Raising the minimum wage would have several positive economic and social impacts according to the document. It would stimulate consumer spending and economic growth by putting more money in the hands of minimum wage workers. It could also lead to more job opportunities as businesses hire more workers to meet increased demand. Additionally, raising the minimum wage may decrease expenses for social programs and reduce employee turnover rates as minimum wage workers feel more financially secure and satisfied in their jobs. However, some argue that raising wages could increase inflation, though the document asserts that it could actually help minimum wage workers keep up with rising prices. Overall, the document makes the case that modestly raising the minimum wage could have broad benefits for both businesses and low-income individuals.

1. Why The Minimum
Wage Should be
Raised
By Kerstin Rhodes

2. Reasons As To Why…
Economic
Stimulus
More
Opportunity
For Jobs
Reduced
Expense for
Social
Programs
Decreased
Turnover Rate
Inflation

3. Economic Stimulus
Minimum wage increase
will…
• Boost consumer spending
• Increase demand
• High economic growth
Rise in income = Rise in consumer spending

4. More Opportunities For Jobs
• Businesses need to keep up
with increased sales
• Minimum wage workers
attract minimum wage
spenders
• Economic growth continues
Working = Earning + Buying

5. Reduced Expense for Social Programs
Social programs are welfare subsidies designed to aid the needs of
the American population. This means there will be a decrease in…
• Food assistance
• Public housing
• Healthcare spending
This will reallocate funds towards…
• Education!

6. Decreased Turnover Rate
• Minimum wage workers
become satisfied
• Less likely to quit
• Fewer expenses to hire and
train new people
“I’m lovin’ it.” - McDonalds

7. Inflation
Inflation rises every year and the
minimum wage has to be increased to
keep with the annual increases.
Minimum wage has only been increased
three times in 30 years.
Question: Is inflation good or bad?
Good for business, but bad for anyone
not investing their money. Your money
is worth less in the future.

8. Inflation (Cont.)
Raising the minimum wage will help.
• Consumer spending increased
demand
• Businesses hired more people to
keep up with sales
• Employees are satisfied
Everyone can keep up with inflation!

9. Socio Economic Example
• Sales Associate
• $7.25/hour (Minimum wage)
• Part-time
• Work 3 days a week
• Payments on car insurance, gas, and
phone bill
• 2005 Nissan Sentra
• Going to college to earn Associate’s
degree in BAMM

10. Sources
• http://wheniwork.com/blog/the-pros-and-cons-of-raising-the-
minimum-wage/
• http://www.financialramblings.com/archives/history-of-federal-
minimum-wage-rate/
• http://www.investopedia.com/ask/answers/052815/does-
raising-minimum-wage-increase-inflation.asp
• http://www.dol.gov/featured/minimum-wage/mythbuster
• http://www.investopedia.com/university/inflation/inflation1.asp