Minimum Wage and Job Growth

A common argument against raising minimum wage is that it is believed that as the employee’s pay goes up, the number of jobs go down. I would argue against this notion and would note that an increase in minimum wage would help job creation. Low-income workers will spend more money now that their new higher wages allow them to be able to afford a better life. Higher paid workers who are making a ton of money are more likely to save their money since they can already afford everything they want, and then some. This notion of increasing minimum wage will allow more money to be put into the economy. As the minimum wage workers continue to spend their money on things they can now afford, a demand for goods and services will increase. The increased supply and demand for goods and services leads to an increase in business, which in turn leads to job creation.
 
 In a speech given in Denver on July 9, 2014 President Obama addressed the concept of raising minimum wage and the effects it had in the number of jobs either created or lost. He said “Since I first asked Congress to raise the minimum wage, 13 states have gone ahead and raised theirs—and those states have seen higher job growth than the states that haven't raised their minimum wage”. This statement from the president himself shows that the popular opinion that an increase in minimum wage would have a negative effect on job growth is false.