Minimum Wage Is The Lowest Wage Essay
Generally speaking, there should not be a minimum wage. If the United States removed minimum wage, we could wipe out unemployment completely. Businesses could hire workers at all levels. Furthermore, we could discard price increases and tax liability.
Minimum wage increases make it more likely that firms won’t hire new people than that they will fire current employees. According to the Bureau of Labor Statistics, only “4.3 percent of all hourly paid workers” work at or below the minimum wage and “… workers under the age of 25… made up about half of those paid the federal minimum wage or less.”
Minimum wage reduces quantity demanded of workers, either through a reduction in the number of hours worked by individuals, or through a reduction in the number of jobs. They set a price for labor that is greater than the value these workers would bring to the employer. Higher wages means that workers will be required to be more productive, further increasing revenue. The result is that less-skilled or less-experienced workers may find themselves unable to find…