Minimum Wage: A Look at the Positive and Negative EffectsINTRODUCTIONMinimum wage is defined as “a wage fixed by legal authority or contract as the minimum that may be paid to persons employed generally . or to a particular category of employed persons” (“Minimum Wage”, nd). For the federal minimum wage, the “provisions are contained in the Fair Labor Standards Act (FLSA). The federal minimum wage is $7.25 per hour effective July 24, 2009” (“Minimum Wage – Wage and Hour Division (WHD),” nd). Although there is a federal minimum wage, most states also have their own laws in place. In Illinois, the “minimum basic hourly rate is set at $8.25” (“Minimum Wage Laws in the States,” nd). However, as with most laws, there are pros and cons to this type of policy. Supporters of the minimum wage may argue that it has social and employer benefits, and that an increase in the minimum wage would help stimulate the economy. On the other hand, those opposed to it would argue that it leads to lower employment, increased costs for consumers, and increased ROI from automation. The following report will examine both sides of this complex economic issue in more detail.BENEFITS OF MINIMUM WAGEEmployee Benefits of Minimum WageEarning less than the living wage is a major obstacle facing many Americas today. This is a huge drain on the pockets of all taxpayers due to social welfare methods. The low minimum wage accounts for a significant part of the decline of the middle class here in America. By earning less, society loses its strong middle class. Without the middle class, society will become more dependent on social programs, which will continue to increase the national debt. This same na...... middle of paper ......, cons, pros and cons to consider when weighing the pros of each side of the argument. First, when deciding whether to raise or remove a minimum wage, it is important to measure data both qualitatively and quantitatively to determine which brings the greatest net benefit to society. Net benefits can be measured in terms of quality of life, increased disposable income, job creation, and expansion or contraction of social assistance programs. The argument for a minimum wage concerns its social benefits, its benefits to employers, and its economic recovery measures. The argument against a minimum wage is declining employment, increased costs to consumers, and increased returns on investment from automation. While there are arguments for and against the government removing the minimum wage, the likelihood is almost non-existent..