Minimum Wage Pros And Cons

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Introduction Minimum wage is the lowest hourly rate an employer can pay an employee for hours worked. The topic of raising the minimum wage is a sensitive issue for many people. The livelihood of many relevant stakeholders will be directly effected by policies created in regards to raising minimum wage, both positively and negatively. This paper will examine the history and current state of minimum wage. It will identify the issues connected to raising minimum wage, analyze the arguments for and against, and make recommendations based on the analysis. While minimum wage could refer to the federal or state minimum wage, this paper will use the term minimum wage in reference to the federal minimum wage unless otherwise specified. Summary of…show more content…
Shareholders expect a certain return on their investment, so knowing how businesses plan to handle any increase will be important to them. Business executives are stakeholders for the same reasons as shareholders. They are going to care about the affect on profits, and whether or not the shareholders are satisfied. How minimum wage affects their business’s success in non-financial ways will also be a concern. Executives must consider how the treatment of and benefits for their employees affects society’s view of them. Business managers are stakeholders and not just because they need to maximize profits for executives. The ability they have to properly staff their respective departments within the business could be affected by minimum wage. Will it cost them labor hours, decrease turnover, or…show more content…
While the general sweeping statement that everyone is a stakeholder may sound absurd, the minimum wage debate affects everyone. Society as a whole should care about the decisions being made regarding wages and how it will affect business and economy. Arguments: The Pros and Cons The Pros Pro #1: Positive Impact on Economy Argument The argument that raising minimum wage will stimulate the economy in a positive way is based on the thinking that more money in the pockets of minimum wage workers, as well as anyone who experiences increased wages due to employers increasing their overall salary ladder, will in turn spend that money on items and services that pour back into the businesses that need to increase wages. The idea is that not only will more people be able to afford essentials, but they will have additional disposable income to spend. Argument Analysis Pro #2: Increased Availability of Jobs Argument Going along with the positive economic growth is the idea that if minimum wage is increased, and these workers turn around and spend this additional income, sales will increase to the point that businesses will need to employ extra workers. In other words, increasing the wages for minimum wage positions will create more minimum wage
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