However, in the long run, many employers will not be able to maintain to stay in business due to the significantly high wages. An increase in minimum wage would cause millions to lose their jobs and put them further in poverty. It would even make it harder for them to obtain jobs after the increase due to the increase of competition in the job market, and most importantly an increase in minimum wage would cause increase in the price level and it will reduce significantly consumption due to the lack of purchasing power that is cause by the higher inflation rate. The minimum wage should not increase because it is unsustainable economically. Another approach of help guide people out of poverty can be a push for an increase in education and knowledge capital instead of continuously increasing the minimum
Dunkelberg states that raising the minimum wage could possibly destroy small businesses. If small businesses were to raise their minimum wage above ten dollars they will either have to fire some employees to make up the difference of the raise or they will have to raise the price of the product they are trying to sell. Just because the government were to increase the minimum wage does not mean you will get more work or better work out of the that individual so that business may need all of their employees. Because maybe they cannot afford to lose one so in return they would have to raise their prices, but the issue with that is maybe raising the price higher might just be enough to chase away customers to chain stores such as: Target, Walmart, or Kohl 's. That may mean their small business might close, just because they cannot financially support raising the minimum wage.
The minimum wage has gone up significantly in the history of the United States, as the cost of living has gone up. People demand higher wages to overcome the higher prices of goods and services. On an economic and cultural perspective, we should not increase the minimum wage because it will lay-off workers that are not as skilled, which will make it harder to find employment, and it will cause the lower-classes to go into poverty. Looking at this debate through a cultural perspective shows the negative results of the government deciding to raise the minimum wage. Raising the minimum wage would not help out the poverty problem that we possess today.
In order to maintain their net earnings, the business look for a number of alternatives, that includes cutting employment and making other similar decisions. Thus the results that policy makers expect form the fixation of minimum wages doesn’t turns out to be the same due to the behavioural responses of the employers. The supporters of minimum wage imposition believes that minimum wage imposition is the technique to boost the incomes of full time adults who belong to low income families in order to better off their situation. But in contrast to the assumptions, in reality the data indicates that mostly the part time workers are young workers and are generally not from the low income background. Hence the policy ends up resulting in creating
Clearly, there are two sides to this situation, and people may argue these business owners currently have the upper hand as they are allowed to pay their workers as low as $7.25 an hour according to the federal minimum wage policy. That may be true, but it can simply increase if these workers revolt against these business magnates by not working forcing them to increase their salaries. It may cause them not to make money for a few weeks during these riots, but would benefit them in the long run. The essence is, Americans should increase the minimum wage and that it should increase because it would prevent workers living under minimum wage from changing their lifestyle to adapt to the working conditions and would decrease the overall poverty in the
01 Mar. 2016. The American Action Forum believes that raising the minimum wage can do more harm than good and hurt the people it’s supposed to help. Job loss in the millions would happen if the wage was raised from $7.25 to $15. People in poverty before the increase would have trouble finding jobs because companies would have to have less positions to counter the wage raise.
In line with this, the small change in minimum wage is not helping and it is clearly not reflecting the fair and just distribution of money throughout the organization and teamwork is hurt by keeping the minimum wage low. It should be increased to force employers to do more to
Although the term “living wage” is not clearly defined by advocates, it is loosely a wage sufficient to satisfy one’s basic needs including housing, education, food, and healthcare. The main arguments for this living wage are that it is our moral duty to stop the exploitation of workers by their employers who can force them to work long hours in horrible conditions for little pay, and that society will reap benefits if the poor are better able to take care of themselves due to their higher wages. The arguments against (increasing) the minimum wage are that as things get more expensive we demand less
These earnings gaps can be explained by lower education levels among immigrants for example. Regarding the effects of immigration on labor outcomes Immigration affects the wages of the host country in several ways. First of all, it increases the labor force of the receiving country and, this growth in labor supply, have a negative impact on the average wages if there aren’t factors of production that can adjust this change. Secondly, as immigrants could substitute native workers in their jobs, they are also expected to lower the wages accepting lower conditions and salaries. Generally, immigrants tend to concentrate in certain regions, often the major cities.
As our recommend above, the government should implement the better policies to help reduce the rates of unemployment, which can be done by ensuring that the economy is stabilized, reducing taxes on businesses and creating a conducive environment that promotes business in the country. This is because when people are long-term remain jobless, this will notice majority of these people engaging in illegal acts such as crimes, which will only worsen the current state of economy of the country. Therefore, it is the responsibility of both the government and the private sector to increase the employment levels in the country. And the citizens should also equip themselves with the skills and attitudes that will help them to fit into the job
Since the election and reelection of President Barack Obama the increase in minimum wage has been a major topic for the United States. His proposal to increase minimum wage has sparked a lot of controversy with some Americans. Many believing that increasing minimum wage will have a negative impact on our economy and even our educational system. They argue that increasing minimum wages will harm the very people it was intended to help because it will increase housing cost as well as the price of consumer goods. They argue that it will decrease the high school enrollment rates at the same time increase dropout rates.
Imagine an increase of unemployment, closing of businesses, and living costs. These would be results of an increase of minimum wage. The increasing change of minimum wage does not always result in beneficial ways. Would you want a hike in minimum wage if it could possibly raise the prices around you? Minimum wage is affecting employment, businesses, and how people live in ways that are unrewarding.
There will be no point in raising the minimum wage if the price of products goes up. It will just be canceling out the changes. Another online article by Los Angeles Daily News, states that “To survive, more profitable businesses will have to reduce workers’ hours to a bare minimum, automate as many positions as possible and raise prices as high as the market will bear”. The only way for business people to live in these conditions is to raise their prices, but that will also mean that they will not make as many sales. Not as much sales, means that they won’t make as much
I do not believe that it will be beneficial for the United States to pass a minimum wage policy that puts it over the poverty line. Basically, this will dive the prices of products up so companies can manage profits. Additionally, the demand for products will additionally drop because of the rise in prices. Since the demand for products will be dropping, this will lead to less money in the business owner’s packet, which can lead to job losses. Even though the minimum wage workers will have more money on pay day, the rise of goods will cause inflation, and they will still not be able to afford anything.
Small Businesses could go out of business if we raised the minimum wage to a higher price. This is a widely debated subject of money, income, and the effect raising the minimum wage can have on businesses and the economy. Currently, the federal minimum wage is seven dollars and twenty-five cents and have been established that way since 2009. It has been said minimum wage should be increased to accommodate living expenses and travel time to places of work. The problem with raising minimum wage , that many people do not realize, is how it affects big and small businesses.