the minimum wage is currently a price/wage floor. A price floor is a legal limit set above equilibrium. So, firms can pay a rate of $7.25 (the federal minimum wage level) or more. In addition, to other factors that come into play, if the minimum wage was increased beyond the current rate, the US would suffer from a decrease in exports and an influx of imports. Globally, the US would lose because our prices would not be competitive in foreign markets. Domestically, the US would decrease production due to the decline in exports and the decline in demand for US made goods - as imports would be priced cheaper.