Opponent’s opinion is that minimum wage forces the employers to hire fewer employees because they have to pay more to their workers and the cost will increase. Other opponents say that it can increase the prices as businesses must raise their prices to adjust the higher wage and keep the profit stable. In 1995, the Congressional Joint Economic Committee published a review of 50 years of academic research on the minimum wage . The study found many negative impacts of increasing minimum wage, the findings include: reducing training for workers, increase job turnover, reducing school attendance, and encouraging employers to hire illegal workers. Also, because the minimum wage levels are different from one state to another, some states have higher minimum wage, some economists believe that this would have negative impacts on investments, as investors would like to invest their money in states with lower minimum wage to minimize the cost and to maximize the profit.
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
Legislators often think that putting more money in the pockets of the poor is likely to help their families. However, legislation will not rescind the laws of economics. According to research, mandated hikes in wages imposes real costs of economics and these costs are principally borne by the very individual legislators are trying to help. However, it leads to an unfortunate attempt to increase minimum wages as it depends mostly on emotion rather than economic reality. Cohorts mostly depict the typical minimum wage earner as a solo parent who is struggling to place food on the table.
Again, there's a lot of reasons of why the minimum wage shouldn’t be raised but a few of them are, businesses and companies will close or struggle, poverty will increase, and the prices of consumer goods will increase too. The economy already struggles, raising the minimum wage will set off many economic indicators. That means that our economy will start to go down
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.
Crazy Wage Mike Durant once said, “Making it more expensive to create new jobs is a perfect way to guarantee fewer of them.” The recent, “Raise the Wage” campaigns have sparked an interest in many low-wage workers, however those who support this initiative are unaware of the economic problems that will arise if this is successful. Several cities have already raised their minimum wages and some, like Seattle, are raising it as high as $15 per hour. Currently, supporters of this campaign argue that this raise should be implemented federally. However, doing so will have broad and negative financial implications. Ever since the Great Depression, the minimum wage has been in effect — in order to reduce poverty and solidify that employees are paid a reasonable sum.
For example, the neoclassical model, simply put, states that the high cost of labor will decrease the demand for labor. This model assumes that each worker receives the minimum wage which is not completely inaccurate but the assumption can yield imprecise results. Another model is the monopsony model in which the employer’s side is compared to a labor force in which all employees are paid the same. This model can lead to an increase in employment as well as a decline in employment depending on the wage set by the labor force. According to recent studies by the Congressional Budget Office, a higher minimum wage can have two effects on the employment of low-wage workers: most of the low-wage workers who would receive a higher wage due to the federal minimum wage would also have a high income with some earning an income that would put the above the federal poverty standard while another effect is that some low-wage jobs would disappear and the income of the unemployed would decline
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
Not only will increasing the minimum wage make it pricier for businesses to hire young, inexperienced workers, but it is also not stated in the constitution to allow such a thing for the government to handle. Boosting the minimum wage will not alleviate poverty, and there are plenty of alternatives to decrease the poverty rate. Also, by leaving the amount the minimum wage should be to the government and no the people. America is losing its freedom and changing its economic system. By increasing minimum wage, America would be hurting its people, not helping them.
The numbers are the same in many other states as well. The numbers state that increasing the minimum wage will allow America to pull out of the recession that we are held within. The committees of New York and California concluded that a fifteen dollar minimum wage is estimated to increase the income of minimum wage workers by one third percent in each state. Many large business owners say that this will greatly impact the productivity and growth of their companie in a positive way. They say that there will be more income coming in along with quality consumer products going out at a much faster rate than ever before.