The proposal to raise the minimum wage has caused controversy within many states across the country. Politicians, business personnel and economists have evaluated the circumstances and consequences of raising the minimum wage. Supporters believe raising the minimum wage will have lasting benefits, while opponents argue further economic and social complications could arise. Even though both sides of the argument can be justified, it appears an increase in the minimum wage will do more harm than good for the economy.
Poverty, inflation and unemployment are three major aspects associated with minimum wage. Both sides of the minimum wage debate have evaluated the impact raising the minimum wage would have on these specific elements of the …show more content…
From an economic and social standpoint I do not believe it will be beneficial to raise the minimum wage. As I analyzed the data provided, it appeared that the cons outweighed the pros. For example, reduced levels of poverty appeared to be the major benefit supporters were using to justify raising the minimum wage. I am in disagreement with this claim due to the fact there has been a trend of increased poverty and inflation in the past as a result of increasing the minimum wage (Iowa). Increasing the minimum wage makes it more challenging for businesses and companies to pay their employees. After watching “Should We Raise the Minimum Wage” I had a more clear perspective on the role businesses and companies play in regards to minimum wage. If minimum wage increases it means that businesses and companies have to pay their workers more causing a loss in profit. Their solution to avoiding this loss in profit is to fire employees. Entry level workers will be the first to be fired because they are not the source generating high profits. This then leads to further complications such as poverty. Another solution for businesses and companies to prevent profit loss is raising the prices of their goods and services. As previously mentioned, it has been a trend for inflation to rise as the minimum wage increases. If this trend were to continue there would be no significance in raising the minimum wage because people would continue to struggle to afford expenses. Finally, I do not support raising the minimum wage because I feel it is an opportunity for businesses to abuse their power. For instance, companies can provide raises to their higher level employees instead of offering positions to entry level workers that need jobs and a source of income. This similar idea was represented in the cartoon with the three
Poverty, inflation and unemployment are three major aspects associated with minimum wage. Both sides of the minimum wage debate have evaluated the impact raising the minimum wage would have on these specific elements of the …show more content…
From an economic and social standpoint I do not believe it will be beneficial to raise the minimum wage. As I analyzed the data provided, it appeared that the cons outweighed the pros. For example, reduced levels of poverty appeared to be the major benefit supporters were using to justify raising the minimum wage. I am in disagreement with this claim due to the fact there has been a trend of increased poverty and inflation in the past as a result of increasing the minimum wage (Iowa). Increasing the minimum wage makes it more challenging for businesses and companies to pay their employees. After watching “Should We Raise the Minimum Wage” I had a more clear perspective on the role businesses and companies play in regards to minimum wage. If minimum wage increases it means that businesses and companies have to pay their workers more causing a loss in profit. Their solution to avoiding this loss in profit is to fire employees. Entry level workers will be the first to be fired because they are not the source generating high profits. This then leads to further complications such as poverty. Another solution for businesses and companies to prevent profit loss is raising the prices of their goods and services. As previously mentioned, it has been a trend for inflation to rise as the minimum wage increases. If this trend were to continue there would be no significance in raising the minimum wage because people would continue to struggle to afford expenses. Finally, I do not support raising the minimum wage because I feel it is an opportunity for businesses to abuse their power. For instance, companies can provide raises to their higher level employees instead of offering positions to entry level workers that need jobs and a source of income. This similar idea was represented in the cartoon with the three