Minimum wage is always an issue that splits a crowd. Many presidential candidates are arguing about raising the minimum wage in order to gain publicity, and obviously, votes. President Obama has voiced his support in raising it to $10.10 early last year, but we have not
Surprisingly enough, the Berkeley city council, has proposed raising minimum wage to $19 in four years. It is known that the federal minimum wage is at $7.50 as of now. But many cities and towns have increased that number to fit the community needs, for instance, the minimum wage in the city of Berkeley is at $10, according to CNNMoney, “It’s set to rise to $11 next month and to $12.53 by October 2016. But the proposal would raise is to $13 by October 2016 and then increase it by $1.50 a year until it reached $19.”
The cost of living in the city of Berkeley is quite high and raising the minimum wage benefits many people, but from a business perspective this might harm many small businesses within Berkeley. Many would also argue that it’s too steep an increase, which may push people out of business. One of these people is Polly Armstrong, the CEO of the Berkeley Chamber of Commerce.
If more people are getting paid more, then more businesses will find it too difficult to spend money in developing their small businesses; which in the long term, may force many of these entities to close down, which in turn, will cause a decrease in the number of jobs in a city.