While raising minimum wage may help some of American citizens that are working minimum wage jobs, we must keep in mind that in order to still maintain a profit, companies will have to fire some of their employees. It was estimated that raising federal minimum wage to $8 would result in the termination of around half a million employee's jobs. This does not seem like a feasible option and because of this minimum wage should be kept at the current rate.
Raising the minimum wage will result in higher costs for consumers as companies struggle to cover the payroll difference. There is no use in paying people a higher minimum wage when the costs of goods and services will have to immediately increase. These changes will cost more people their jobs and put necessities out of financial reach.
Especially in the beginning when minimum wage is raised and the Federal Government tries to figure out how they will be able to sustain the economy and inflation with the raising of the minimum wage. It will be difficult but hopefully overtime the economy will be able to adapt to the change in minimum wage and businesses as well.
No, increasing minimum wage will not result in higher costs for consumers. In fact, one would expect the opposite to be true. With increased buying power, workers who make an elevated minimum wage would be more likely to purchase goods and services they might otherwise be unable to afford. The increased demands for these goods would result in increased profit for companies and potentially reduce the overall cost for consumers.
The argument that increasing the minimum wage will increase consumer costs would be viable if American consumers were buying American products. How much American product does the average American buy? Clothes are foreign made, food is foreign grown, oil is foreign drilled and our movies are foreign made. What in America is truly American? Even American automobiles are made overseas.