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  The minimum wage is a government-imposed floor for wages that sets the lowest amount a business can pay an employee. Many low-income workers such as fast food employees, laborers and other unskilled workers receive the minimum wage. Increasing the minimum wage is a controversial issue. Proponents of minimum wage increases offer several arguments about the benefits of the minimum wage.
  
  

Help for Low-Income Families

• One of the primary arguments in favor of increasing the minimum wage is that it tends to promote economic equity by assisting low-income earners who may be near the poverty line. Low-income families may have two or more wage earners that work 40 hours or more a week but still struggle to afford basic necessities such as health care, food, child care and housing. Increasing the minimum wage can put more money in the pockets of these workers.
  
  

Income for Students and Teenagers

• Increasing the minimum wage can also benefit young people, such as students in high school and college. Young people often take low-paying jobs to save money for college or to earn money toward living expenses while in college. Increasing the minimum wage is likely to increase the income earned by teenagers and students, which can increase savings for education.
  
  

Countering Inflation

• Inflation is the increase in price levels in an economy over time. If the cost of goods and services increases, the value of each unit of currency declines. For instance, if a dollar can buy a hamburger today, but next year a hamburger costs $1.10, each dollar you earn is worth less than it was last year. Proponents of a minimum wage increase argue that the minimum wage must be increased periodically in order to keep pace with inflation. If the minimum wage did not increase, those receiving the minimum wage would essentially become poorer over time.
  
  

Increasing Spending

• Economic activity is based largely upon consumer spending. Proponents of the minimum wage increase may argue that it can spark an increase in consumer spending, which can have a beneficial effect on the economy.
  
  

Considerations

• Individuals are likely to disagree as to whether common arguments for increasing the minimum wage are valid. For instance, an opponent to the increase might not view economic equity or helping low-income earners as important issues. One of the most common arguments against an increase in the minimum wage is that it may cause businesses to hire fewer workers, resulting in higher levels of unemployment.