Not getting by on minimum wage

Paul Osterman, the economics professor at MIT, pointed out that Economists point out that in order to promote economic growth to the nation; the state governments need to increase their minimum wages. Nowadays, a huge percent of the people in America who have jobs are earning at the poverty level. Therefore, Osterman argued that offering low-paid jobs will not help the economic development and that increasing the minimum wages is just as important. He said that by raising the minimum wages, it will help the sales of businesses and encourage them to hire more people. Economist William Dunkelberg, however, stated that minimum wages are to be raised when the economy is growing.

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I agree with both Osterman’s and Dunkelberg’s point of views. Dunkelberg was right; during an economic slump, employers can’t afford increased minimum wages since they’re not generating a lot of revenue themselves. However, by increasing the minimum wages, people have more disposable income. And it would then increase the demand level in the economy, contributing to economic growth. Employers can then offer more job opportunities. In conclusion, a family with a low annual income can do a lot more with a few thousands added in paycheck.

Article- http://money.cnn.com/2011/09/27/news/economy/minimum_wage_jobs/index.htm