A sensitive topic for many Americans is their income. Many people's income depends on the minimum wage. In 2012, 3.6 million people received an hourly wage at or below the minimum wage. There is an ongoing debate in government about what the minimum wage should be. Stuck at $7.25, Obama suggested raising the minimum wage to $9.00. Depending on a person's perspective, raising the minimum wage could be good or bad. The minimum wage has the ability to change lives and change the economy. Small businesses and unemployment, teen demographics and the cost of civilian goods would be hit the hardest. The only mystery is whether things would change for the better or worse. Many areas could be affected by a change in the minimum wage, but potentially the most drastic change would be to unemployment. Supporters of a higher minimum wage insist that an increase would significantly reduce the U.S. unemployment rate and improve quality of life. However, there are conflicting opinions on this. A higher minimum wage would mean higher labor costs for business owners, thus making it harder for employers to maintain the number of workers they have, let alone add new employees. Raising the minimum wage does not increase the value of the worker's labor; increases the worker's labor costs. As a general rule, the more something costs, the less people will buy it. This applies not only to consumer goods but also to workers in the labor market. Many jobs come from large companies, but they also come from small businesses. There are 23 million small businesses in America, accounting for 54% of sales and 55% of jobs. Raising the minimum wage means that all these companies and businesses will have to dig deeper... middle of paper... these small businesses wouldn't be able to afford to pay so many employees. By raising the minimum wage, many teenagers and others who rely on these jobs as their only source of income could potentially be left without a job. These people would no longer be able to afford the items they want or need. Businesses would have to increase the price of consumer goods to compensate for the higher cost of employees. Businesses could potentially lose customers who have been laid off and are unable to afford the company's services. Raising the minimum wage would have a domino effect on the economy leading from one bad thing to the next. Works Cited http://www.dol.gov/whd/minimumwage.htm http://www.nytimes.com/2013/02 /13/us/politics/obama-pushes-for-increase-in-federal-minimum -wage.html?pagewanted=all&_r=0 http://www.salary.com/increasing-the-minimum-wage-pros- cons/