The minimum wage principle is a controversial issue that many people have strong opinions about; whether it should or should not be legally required for a wage worker to receive a minimum amount for every hour worked. But what exactly is minimum wage and is it enough for someone to sustain themselves, if not a family. The minimum wage attempts to create a falsified “living wage” for the wage worker. Due to the fact that minimum wage is not governed federally in terms of numbers, it varies depending on the city.
According to Jennifer Medina, in California, 80% of workers received a raise in the minimum wage to $11, giving roughly 2.5 million workers more money. Living wage is an amount of pay that is high enough to continuously and comfortably …show more content…
Evidence that is supported by the Center for Economic and Policy Research, for a business, increasing the minimum wage may very well inhibit the need to hire less worker, raise prices to cover costs (which would be less favorable for the consumers), and will encourage mass unemployment for factory workers as they would be replaced with automated machinery. Though implementing a living wage may guarantee that the most vulnerable of people are able to obtain their basic needs and stimulate economic growth by encouraging spending, in doing so would be unfair to brand new companies who can barely pay off their loans and cause a surplus in labor which again would lead to unemployment. Businesses should be able to set their wages independently of government controls so that not only would they be more profitable, but they would also be more inclined to open jobs and lower unemployment. To understand the situation, you must have an open mind about both sides of the argument. Is it acceptable to not be able to have a higher purchasing power to be able to live comfortably? Then how can it be acceptable to risk everything on opening a business only to be forced to close due to the cost of employing others is too high. If a business was able to set their wages in correlation to an average revenue, which would be reset every quarter, they would run much more efficiently, be able to provide the jobs that people need, and give people the drive to go make
According to Jennifer Medina, in California, 80% of workers received a raise in the minimum wage to $11, giving roughly 2.5 million workers more money. Living wage is an amount of pay that is high enough to continuously and comfortably …show more content…
Evidence that is supported by the Center for Economic and Policy Research, for a business, increasing the minimum wage may very well inhibit the need to hire less worker, raise prices to cover costs (which would be less favorable for the consumers), and will encourage mass unemployment for factory workers as they would be replaced with automated machinery. Though implementing a living wage may guarantee that the most vulnerable of people are able to obtain their basic needs and stimulate economic growth by encouraging spending, in doing so would be unfair to brand new companies who can barely pay off their loans and cause a surplus in labor which again would lead to unemployment. Businesses should be able to set their wages independently of government controls so that not only would they be more profitable, but they would also be more inclined to open jobs and lower unemployment. To understand the situation, you must have an open mind about both sides of the argument. Is it acceptable to not be able to have a higher purchasing power to be able to live comfortably? Then how can it be acceptable to risk everything on opening a business only to be forced to close due to the cost of employing others is too high. If a business was able to set their wages in correlation to an average revenue, which would be reset every quarter, they would run much more efficiently, be able to provide the jobs that people need, and give people the drive to go make