Reaction #1-Dean Sbriscia

Reaction to Minimum Wage Debate:


The minimum wage debate is very interesting because it makes you question whether or not raising the minimum wage rate would produce an efficient outcome in the economy. As a New Jersey resident who would see a minimum wage increase in my home state, I believe it would stimulate the economy because people would be more tempted to take a job that is more lower level verses sitting at home and saying it is not worth the time for the money. $5.15 an hour is an extremely small number and $7.15 is more rewarding for an hour of labor. Sachhyam did a good job at showing the number might be increasing, but the purchasing power is actually decreasing and many individuals fail to recognize this statistic in analyzing the wage rate. The unemployment rate may rise initially, but like he said, it will level out over time and in the long run it will stimulate more job opportunities for individuals. Increasing the wage rate provides more initiative for people who might have before looked at jobs such as fast food restaurants as cheap labor.