The Benefits Of Increasing Minimum Wage

Reducing worker’s hours, due to an increase in minimum wage, affect employees who work lower end jobs. If the unemployment rate increases, the possibility of getting a job can be slim because of everyone else looking to get hired. If there are not enough jobs, people with a higher education will be attracted to lower end jobs and will surpass those who typically work the lower end jobs (Reisman). If two applicants apply for the same lower end job, one with a higher education than the other, the one with the higher education is more likely to get the job because of his/her level of education. Even if the job does not require a certain level of education, it looks better and gives the applicant an advantage to getting hired. Due to the competition …show more content…
Although the expectation is that one would receive more income, the reality is that a higher minimum wage can lead to employees getting laid off because not all businesses have enough money to pay their workers $15 an hour. Corporations might not struggle to pay their employees $15 an hour but it’s the smaller businesses that will have a hard time paying their workers. In an interview, small business owner Elizabeth Gonzalez explains that if the minimum wage, was to rise she would have to cut down her number of employees working for her because she would lose profit if she doesn’t do so (Garcia). If other small businesses, like Gonzalez’s, are forced to fire some of their workers this reduces job opportunities. However, with unemployment going up it would be a disadvantage for less job opportunities because that means the chance to work is now even a smaller possibility. Raising the minimum wage can lead to an increase of poverty rather than reduce poverty. It will help families earn more income, but there will be no jobs available to earn this money from. If there are no jobs to work for, there will be more people living in poverty than before the wage