In 2007, the new Democratic majority pushed through a $2.10 (or nearly 41%) increase in the minimum wage, phased in over three years beginning on July 24, 2007. When Congress passed this increase, the nation's unemployment rate was relatively low at 4.4%. Since then, it has increased steadily, peaking at 10.1% last October [2009] (Jaarda). The most recent increase of the minimum wage came in July 2009, and hasn't moved since. However, maybe it is a good thing that it hasn't risen since. History also shows that an increase in minimum wage follows with an increase in the unemployment rate. .
With an increase in minimum wage, not only will the economy face higher unemployment rates, but it will also face an increase in poverty. Those that support the raising of the minimum wage do have good intentions, but do not realize the unintended consequences. A lot of supporters don't think about the most unskilled workers that need the most help. An increase in minimum wage would encourage businesses to hire fewer workers, and focus on the most qualified. That being said, the least-skilled workers would be the ones not getting hired even though they need the most assistance. A higher minimum wage does not reduce poverty rates, and because of the perverse way that many government aid programs are structured, it will also do little to help the neediest minimum-wage families (Sherk). This is a perfect example of the well-known saying "the rich get richer, and the poor get poorer." .
There have been proposed plans to raise the minimum wage in recent years. Most of them coincidentally happen to be positive for society despite proven facts that it would cripple the economy. Most recent plans with an increase in minimum wage state that it would actually help low income workers. In the first year, with an increase from $7.25 to $8.10, nearly 13 million directly and indirectly affected workers would see higher wages.
