Minimum Wage Speech

Good morning fellow classmates, I appreciate the privilege to present a speech on my policy which is about why the federal government should not increase the federal minimum wage past the existing one. Those of you that are employed and get paid the minimum wage are aware that as of January 1st, 2017, the minimum wage escalated to $10.50 an hour. Of course, the thought of earning additional money by the hour sounds astonishing, but what if this causes negative effects on other people or groups. Even though people may argue that raising the minimum wage can be beneficial in different ways, I’m here to tell you the truth about the real outcomes of raising it. First of all, one of the many groups that will be greatly affected by the raising of the minimum wage would be companies or businesses as well as their employees, particularly diminutive ones. …show more content…
Businesses can or have suffered slow customer activities in result of the minimum wage increased and inflation took effect. Sure, some people may have a little extra money that they did not have before, but since the prices of goods increased they may as well uphold the extra money with them instead of spending it, which is the opposite of what raising the minimum wage was meant to do. Customers will take more precaution on what they spend their money on or even spend less. The author Oner wrote “In an inflationary environment, unevenly rising prices inevitably reduce the purchasing power of some consumers, and this erosion of real income is the single biggest cost of inflation” (Oner 2012). The consumer’s comfort to purchase products declines which goes hand in hand with it causes slow business. Less customers means less business which means the company or business is earning less profit that was caused by the growing minimum wage, therefore the minimum wage should not exceed the current established