IntroductionThis report provides an economic overview of the minimum wage in the United States. It is presented in three perspectives on how consumers, businesses and the community are affected by the new minimum wage laws. The purpose of this report is to provide imperative information that examines how a minimum wage increase attributes to multiple impacts. This report will also explain the advantages and disadvantages that many people face when the government steps in to pass a new minimum wage law in the United States. This report focuses on the state of California and places emphasis on the city of San Jose. This report illustrates how the city of San Jose was affected by Measure D, a new minimum wage imposed earlier this year. Recommendations for resolving minimum wage issues are provided toward the end of this report. The minimum wage is a law enforced by the government in the labor market that does not allow employers to pay their employees below a certain wage. It is also known as the wage a worker is willing to sell their labor in exchange for a good hourly wage. The minimum wage protects employees from exploitation and underpayment. These laws are established and regulated by the federal and state governments. The minimum wage was set in the Fair Labor Standards Act of 1938 by President Theodore Roosevelt. In 2011 the United States minimum wage was set by the federal government at $7.25. Each state can set its own minimum wage laws based on cost of living and other factors, as long as the wage is never less than the federal minimum wage. For the state of California, the federal minimum wage is $8.00 per hour. According to Bernstein (2013) states: “California has become…half the paper…a labor surplus (Mankiw Ch.6). Many people in San Jose now find it harder to find work because there aren't many positions available. These positions are no longer available because employers are unwilling to lose profits. Economist Henry Hazlitt believes the government seeks to stabilize commodities by trying to help low-income and unskilled workers by adjusting minimum wage laws. Hazlitt states that “[t]he government tries to help [a] large number of workers […], and the more it tries to raise their wages, the more […] harmful it is […] outweighing any possible positive effect” (Hazlitt 2010) . This means that the government tries to ensure a better life for everyone, but ultimately ends up hurting workers who are no longer worth the minimum wage. This hurts the community because fewer jobs are available for people trying to get a better paying job.