President Barack Obama has recently announced the proposal to raise minimum wage to nine dollars an hour. The announcement was made on February 13, and was delivered to Linamar Corporation plant in Arden, North Carolina.

While raising the minimum wage does appear to be a good idea, it can prove to be a disastrous one.

Not only could it have a negative effect on the economy, it may be viewed upon as short-sighted. Obama, acting as a true democrat, is basically offering to have the government hold an umbrella over the nation, as usual.

It is true that raising the minimum wage can help some. The reality, however, is that it will cause job layoffs at a rather significant rate.

In addition to that, small businesses will be hurt by this even more than large businesses.

There is still a very slim silver lining to this, though. Since workers will have minimum wages, they will actually circulate the money they earn back into the economy, thus keeping it stable. But there won’t be any actual economic growth.

Obama is still debating with business groups on whether or not this should be enforced.