Minimum Wage: A Look at the Positive and Negative EffectsINTRODUCTIONMinimum wage is defined as "a wage fixed by legal authority or by contract as the minimum that may be paid to employed workers in general or to a particular category of employment” (“Minimum Wage,” n.d.). With respect to the federal minimum wage, the “provisions are contained in the Fair Labor Standards Act (FLSA). per hour as of July 24, 2009” (“Minimum Wage - Wage and Hour Division (WHD),” n.d.). “base minimum hourly rate is set at $8.25” (“Minimum Wage Laws in States,” n.d.) However, as with most laws, there are both advantages and disadvantages to this type of policy Minimum wage advocates might argue that it brings social benefits, advantages for employers, and that raising the minimum wage would help economic stimulus. On the other hand, those who oppose it argue that this causes a decline in employment, an increase in costs for consumers and an increase in the return on investment resulting from automation. The following report will further examine both aspects of this complex economic issue. THE PROS OF MINIMUM WAGE Social Benefits of Minimum Wage Earning less than a livable wage is a major obstacle facing many Americas today. This leads to a heavy drain on the pockets of all taxpayers due to social welfare methods. The low minimum wage has been a major part of the shrinking middle class here in America. By earning fewer wages, society loses its strong middle class. Without the middle class, society will become increasingly dependent on social programs, which in turn will continue to increase the national debt. This same na...... middle of paper ......, disadvantages, pros and cons to consider when evaluating the advantages of each side of the argument. First, when deciding whether to raise or eliminate the minimum wage, it is important to measure the data both qualitatively and quantitatively in order to determine which provides the greatest net benefit to society. Net benefits can be measured in terms of quality of life, increases in disposable income, job creation, and the expansion or contraction of social welfare programs. The argument for the minimum wage is related to social benefits, benefits for employers and economic stimuli. The arguments against the minimum wage are declining employment, increased costs to consumers, and an increased return on investment from automation. While there are arguments for and against the government removing the minimum wage, the likelihood is almost non-existent.