” However, the theoretical evidence that is provided in this article, to disprove other peoples theory on the impact of minimum wage on the economy, seems to have the opposite effect. Statements about the, “simplistic observation that some of the states with high minimum wages also have high unemployment rates,” (http://www.epi.org/publications/entry/briefingpapers_bp150) are not completely disproved with the evidence provided to show no correlation with minimum wage and the job market. Despite trying to remove blame from the minimum wage, the coincidence of these states with the highest minimum wages that also have the lowest employment rates — Alaska, Washington, and Oregon — seem too much of a coincidence to ignore. If there was no link from the minimum wage to the unemployment rate, then why are so many companies outsourcing?
Many companies, big and small, are looking to make extra money by outsourcing positions in other companies that do not require a minimum wage for workers. Companies do not have to spend as much money on employees from other countries. Regardless of whether this tactic, conducted by these greedy or struggling companies, is fair to the hardworking American workers is beside the point. Saving money through outsourcing, in effect, deprives American workers of more jobs. Fewer jobs are available here because those positions are moved to other countries.
In another article by the Wall Street Journal, people believe that one way to fix the economy is by having people spend more: “the point now is to stimulate the economy by increasing consumer demand,” (http://online.
wsj.com/article/SB10001424052702303348504575184802145949666.html?KEYWORDS=minimum+wage+job+market) However, it does not seem likely that this can be done when people do not have the money to spend in the first place. Although I do believe that a high minimum wage will negatively affect the job market, I do not believe that the minimum wage should be completely diminished. Minimum wage helps ensure that employers do not take advantage of their employees; it helps people keep make ends meet with their lower wages; and, it helps ensure that people who earn the minimum wage are still able to keep up with the ever-inflating prices of goods and taxes in our economy. Minimum wage is necessary to enforce in our country, however, it is important to make sure not to raise the minimum too high, otherwise the chain reaction of fewer jobs and higher priced goods will only worsen our economy and job market. Works Cited “Summers on Demand.” Wall Street Journal. 15 April 2010.