Higher Minimum Wage Essay

The discussion around a higher minimum wage has brought up quite a few arguments for and against the proposal. I personally see this change as being detrimental to so many different groups. The first problem is that the demand for jobs is going to be super high and there will be a shortage, meaning the quantity demand exceeds the quantity supplied. Another term for this is excess demand. The group that will be affected the biggest is the teen and youth groups. This is because employers are going to have to lay off the bottom end staff including those with less training and experience. As well it will be hard to get hired elsewhere if individuals with more experience and training have already taken those positions. When we look at business …show more content…
This will happen because employers just cannot afford to have any extra employees and they need a way to cut costs somewhere. The largest expense business owners have is wages and they need to find ways to shave this budget. The unintended consequence of a higher minimum wage is the loss of jobs for those low-income workers. Although the purpose of this change was to make it easier for lower level employees to make a living and be comfortable, the reality is the competition and the demand for work are being increased and there just isn’t enough work for everyone. This, in turn, will be disadvantageous for those employees and the unemployment level will rise.
I think a few things would happen if there was a price ceiling on rent. The first is that the availability of apartments will drastically decrease because everyone will be able to rent. The housing market will fall through the floor because mortgages will be way more expensive than renting. This means the demand for renting will increase and the demand for purchasing will decrease. On top of that, landlords will not be able to afford to pay the mortgage on their rental properties which will also create excess