Raising the minimum wage would be a poor economic choice at the expense of small businesses and their communities. It could potentially could cause fewer job openings, more outsourcing overseas and increase job competition. The tradeoffs vs benefits are largely skewed in the wrong direction.
The job market could become more competitive than it is currently. With many jobs being outsourced overseas many workers will be left with fewer and fewer choices. Outsourcing work not only cuts domestic workers jobs but it also removes the need for domestic production and puts the U.S. in a position in which it is dependent on foreign resources. The U.S. is already dependent on China with the debt being around 1.24 trillion, for most of our products. …show more content…
In 1938 the minimum wage was enacted by Franklin Delano Roosevelt it was originally set to 25 cents or the equivalent of $4.00 today. It was part of the Fair Labor Standards Act, which included youth employment standards, overtime, records, and government employees of all levels. It was the first time federal minimum wage was implemented although Massachusetts provided minimum wage for women and children. It may only be raised by congressional action, and isn’t adjusted for inflation, it was meant to prevent workers from wage abuse. Small businesses and startups are more prone to bankruptcy as employee costs are higher. Starting small businesses these days is a big financial risk. Most businesses don’t make enough to break even the first year. Market conditions are one of the most common downfalls of business. Raising minimum wage would force the employers to raise prices to compensate for higher wages. Financing is a second major challenge businesses face, and if prices are too high, it could lead to a decline in the customer base. Employers may have to remove employee benefits such as health insurance, 401k, paid sick days, holiday and vacation as well. One recent example is a Walmart in Los Angeles was recently shut down due to the minimum wage hike of $15.00 January 17, 2016. Businesses where tips equals the minimum wage have the option of exempting. This means the business may have to refuse acceptance of tips …show more content…
By outsourcing jobs we weaken our economy while boosting theirs. The domestic job market could be improved more quickly by keeping our minimum wages low and improving our educational system. Raising it leads companies to look to automation to run their
The job market could become more competitive than it is currently. With many jobs being outsourced overseas many workers will be left with fewer and fewer choices. Outsourcing work not only cuts domestic workers jobs but it also removes the need for domestic production and puts the U.S. in a position in which it is dependent on foreign resources. The U.S. is already dependent on China with the debt being around 1.24 trillion, for most of our products. …show more content…
In 1938 the minimum wage was enacted by Franklin Delano Roosevelt it was originally set to 25 cents or the equivalent of $4.00 today. It was part of the Fair Labor Standards Act, which included youth employment standards, overtime, records, and government employees of all levels. It was the first time federal minimum wage was implemented although Massachusetts provided minimum wage for women and children. It may only be raised by congressional action, and isn’t adjusted for inflation, it was meant to prevent workers from wage abuse. Small businesses and startups are more prone to bankruptcy as employee costs are higher. Starting small businesses these days is a big financial risk. Most businesses don’t make enough to break even the first year. Market conditions are one of the most common downfalls of business. Raising minimum wage would force the employers to raise prices to compensate for higher wages. Financing is a second major challenge businesses face, and if prices are too high, it could lead to a decline in the customer base. Employers may have to remove employee benefits such as health insurance, 401k, paid sick days, holiday and vacation as well. One recent example is a Walmart in Los Angeles was recently shut down due to the minimum wage hike of $15.00 January 17, 2016. Businesses where tips equals the minimum wage have the option of exempting. This means the business may have to refuse acceptance of tips …show more content…
By outsourcing jobs we weaken our economy while boosting theirs. The domestic job market could be improved more quickly by keeping our minimum wages low and improving our educational system. Raising it leads companies to look to automation to run their