The debate over whether the minimum wage should be altered (raised or lowered) is a highly contentious one. Supporters of a higher minimum wage argue that it will help to reduce poverty, increase job satisfaction and employee retention, and stimulate local economies. However, opponents contend that raising the minimum wage could lead to unemployment due to businesses cutting costs by either reducing staff or replacing them with machines; this would negatively impact not only employees but also the local economy overall.

Proponents of increasing the minimum wage frequently cite research which suggests that doing so can improve living standards for low-income households as well as increasing consumer spending in local communities (Baicker et al). This argument suggests that raising the minimum wage boosts economic activity and leads to more jobs being created in an area as more money circulates within it. Additionally, supporters point out that when people earn more they are able to purchase goods and services which may have previously been beyond their budget—allowing them greater access to essential items such as food and housing.

Conversely, detractors contend that any increase in labor costs would put downward pressure on employment levels (Card), resulting in fewer people being employed while those who remain gain slightly higher wages than before. They suggest further that businesses will respond by either cutting existing workers’ hours or shifting towards automation; this could make certain jobs obsolete leaving less work available for unskilled laborers.

In conclusion, it is clear there are strong arguments both for and against altering the current rate of minimum wage. Ultimately though it seems reasonable to conclude from current research that providing workers with better pay can lead to increased morale amongst employees as well as stimulating economic growth through increased consumer spending power.