Some of the negative effects could be seen when future implementation. As technology increases so does the involvement of computerized systems that perform tasks that would have had a minimum wage employee in that position. History shows that as true. A lot of minimum wage jobs that were around in the 1960’s do not exist today. Also, the positive data collected by the government and other agencies do not account for some variables. For example, there is analysis that backs up the increase stating it will cost the Federal Government nothing and help out the low wage worker, except it does not account for time. What happens after the increase? The amount of jobs lost? The statistics are based off of estimates and not original research. However, when it comes to increasing the minimum wage in increments to meet a certain criteria by a certain year, it can actually ease the transition and offset any economic disturbance.

February of 2014 the Congressional Budget Office (CBO) came out with a new plan based on the specific analysis of two plans. These two plans are based on incremental stages. This is a given because a drastic rise in anything within the economy can have an adverse effect on multiple areas of the economy. The two options called for are a $10.10 option and a $9.00 option. Basically it is an annual increase of about $.95 a year. A pretty decent raise. Per the CBO depending on the option taken it would take between 500,000 and 1,000,000 people out of the poverty threshold. That is an impressive number, but it fails to compare when one looks at the amount of people in that thresh hold. That number is estimated at a whopping 45,000,000 people. At maximum that is only a 2.2% increase in people out of the poverty level and that is before it accounts for jobs lost. Jobs lost is estimated between 100,000-500,000.The CBO, after calculating all of this, estimates that only 300,000-900,000 people will be brought above poverty level. Is it really worth that 1-2%?

Increasing minimum wage will also have an adverse affect on government spending for hourly employees and goods that are guaranteed to rise in price. Generally those prices would be handled by discretionary appropriations, however, they are capped till 2021. So increasing the minimum wage poses iffy questions. However, the economy is not something that can be locked down to exact science. The core foundations of modern economics are based off of rationalized ideals and not statistical tests. The only way to figure out this dilemma is to put a force into action and see what data emerges.

Jared Bernstein, a senior member for the Center on Budget and Policy Priorities in Washington and a former chief economist states his opinion on another route to take involving the job market:

• “As I’ve stressed many times on this blog, policy makers need to be concerned about the quantity of jobs, and pursue policies that will increase that number. But they also have to worry about job quality, especially in the low-wage sector, where the decline in the real value of the minimum wage, the increase in earnings inequality (meaning less growth finds its way to the low end of the wage scale), and the low bargaining power of the work force have placed strong, negative pressure on wage trends for decades.”