Would Raising the National Minimum Wage be Harmful to the Economy?

Would Raising the National Minimum Wage be Harmful to the Economy?
Introduction
The main research topic for this task is “The Effect of Raising National Minimum Wage on the Economy.” Specifically, the research paper concentrates on the topic by answering the question, “Would raising the national minimum wage be harmful to the economy?” The motive for choosing the topic is that the specific topic and corresponding question are increasingly controversial since they present arguments for and against from the proposers and opposers with varying views on the topic (Neumark & Wascher, 2015). The research paper’s subsequent sections will include an analysis of two scholarly sources, one presenting arguments for and the other presenting arguments against the topic and question. The paper will also feature the reasoning quality for these sources and the degree of support for these sources compared with non-scholarly sources.
Presentation of an Argument
Robert Parker’s research project presented in partially fulfilling the necessities of Masters in Economics argues and concludes that raising the national minimum wage is not suitable for the economy since it offers substantial negative impacts. Various premises support the claims within the article. Most importantly, the author argues that increasing these wages might result in massive job losses since most organizations might opt to downsize the number of workers. Moreover, the economy could also significantly reduce the dollar’s purchasing power. Moreover, with the significant rise in business expenses, there is an overall rise in the costs for commodities that the respective businesses create. The significant rise in these costs might result in inflation, which is not relatively an undesirable idea but might cause a reduction in the value of money. The wage-push inflation economic concept might describe the specific scenario. This inflation type is wherever wages rise and the rise results in more production expenses, hence relatively costly commodities (Parker, 2017).
Maintaining the minimum wage has worked successfully for some regions. Therefore, there is no need to raise the wage level to ensure no adverse impacts happen. According to the author, Germany set the minimum wage in the preceding decade efficiently. From Germany’s perspective, implementing the minimum salary did not negatively influence its economy. Parker also suggests that economic theories can help describe the relationship between unemployment and inflation and raise the national minimum wage. Despite the theories proving substantial, the regressions might also offer a better comprehension of whatever might occur. During the regression-based process, considerable evidence indicates that increasing the minimum wage is highly likely to affect inflation (Parker, 2017). In conclusion, a significant rise in these wages is not a better idea for the economy’s survival.
Evaluation of the Scholarly Source’s Quality of Reasoning
From the scholarly source’s reasoning quality perspective, the support for the conclusion or argument regarding the research question and topic fails to adequately reinforce the source’s validity. Specifically, the ...