Although there are many ways to look at minimum wage, such as the increase and decreases, and how it will affects today 's economy it has both negative and positive effects. I believe that the minimum wage has an overall negative impact because whenever the minimum wage is increased it only makes more people recede into poverty when it is supposed to do the reverse effect. Minimum wage was originally made for people just starting out or a pay for low-skilled employees. I believe that if people can 't afford the stuff they need because of a minimum wage, then they should work harder to either get a pay raise or move to a higher paying job. This would not only help our economy grow but help people out of debt and poverty.
I do not believe the government should raise the minimum wage. Wages stand where they are in result of the employees being low skilled and the market value of what is produced. As shown in the graph below, the government finds an average of supply and demand of the labor and decides an equilibrium price. At this point they would not have more workers necessary, which would be a surplus or a lack of workers, which would be a shortage. If a company pays workers more than what they are valued for, the firm will not stand a chance of survival against its competitors.
When the minimum wage is raised, workers are priced out of the market and many of them lose their jobs. The U.S should not raise the minimum wage because there would be a major loss in jobs which would be very hard for the unemployed to maintain their
The most important reason is that it would make it harder for people to create businesses if we raise the minimum wage. For example , say that you or a friend were looking for a job, what if neither of you can find a job because all of the once-were available jobs
The Economic Policy Institute estimates that an increase of $2.85 in the minimum wage could bring in an additional $6,000 a year, but opponents argue that making employees more expensive for companies to hire could increase the unemployment rate which is already 6.7 percent of Americans. Also, according to the article “Should the Minimum Wage Be Raised” raising the prices of certain products could reduce the demand for them, so if we raise the price of workers the demand for them would go down and that could lead to workers getting fired, getting their hours cut, or cause businesses to higher fewer of them in the
That would still leave the ‘poor’ in the same situation that they are in. Raising minimum wage would also cause other families to go in debt, because if they are making a constant amount of income and taxes increases or their bills become higher because of the increase they will lose money causing them to become
Although raising their prices is an option it does not necessarily have to go in that route. Business can save money if they increase the wages because they would have less training to do meaning they spend less money on training new employees. Even if businesses raised their prices people would have more money so they could afford to buy the things at the higher prices and there is always the option of price controls to keep things from being too much. Then there is the motivation for advancement. This argument is reasonable in that some people would lack advancement but most would want better jobs as minimum wage paying jobs are not the most decent.
What causes a recession is inflation. Inflation is a general increase in prices and the fall in the value of money. Falling confidence in the consumer can be a major cause in leading to a recession. Also, manufacturing orders starting to slow down in the economy, this can lead to less money being produced throughout the economy resulting to a loss of jobs. Since this causes a high unemployment rate many of the people will get on a government welfare program to pay for their family and that is even more money being lost in the economy, making the nation fall into a deeper recession.
A statement made from a business owner says, “Many businesses cannot afford to pay their workers more money, and will be forced to close, reduce hiring, or lay off workers.” People with no work experience or even less skilled workers across America will be unemployed. This will result as a repeat in the United States history such as The Great Depression. With many citizens in America, the unemployment and crime rate has potential to increase
According to Don’t Raise Minimum Wage written by Sean McGarvey, by raising the minimum wage less jobs will become available to laborers causing an inflation in prices to buyers. If the wages increase large corporations such as McDonalds and Walmart will lay off the majority of their workers in order to pay for the other employees raise. The employees that get laid off are often the ones that are too young and inexperienced to better the company. This could prevent teens and less experienced laborers from getting jobs. These companies also could higher their prices on their products in order to pay for the raises for their employees.
By raising the minimum wage, jobs will be lost by the people who need them the most. This ultimately prevents a larger portion of the population from climbing the economic ladder and living the American
(wealth inequality in America). I think that money distribution system is wrong for those reasons, and one day if those things don’t change, one person will have all the money and everyone else will have nothing, but that would make America crumble. America needs to redistribute their money, but gradually. If everyone gets re-distributed their money all equally that would be called socialism. But America encourages the American dream, which makes you want to work for more money.
I define working class people as a group of people who get low paid or who work with low-skilled jobs. That means the working class don’t have enough money to spend, and it causes people living paychecks to paychecks. Many people assume that increasing the minimum wage will not be helpful and it will cause higher unemployment and inflation. However,
Raising the minimum wage would be an excellent thing if the prices of goods and services did not go up or if they raised the minimum wage higher than they raise the prices of goods and services. Also if we raise the minimum wage business will not hire as many people because they would be dishing out more money which would increase the unemployment rate. Also benefits that are given to workers and families such as food stamps or housing would probably be limited or decrease a lot because people
The neoclassical theory suggests that an increase in minimum wage would decrease welfare not maximizing the issue. But through the supply and demand graph it shows the exact opposite. If the minimum wage were to increase for low-wage workers then the number of positions available causing unemployment. Employers would have to alter their demand to what they can afford because now they have to adhere to the demands of the government’s regulation on increasing the minimum wage. Highly skilled workers would not be affected in this scenario because they are paid above the minimum wage.