Minimum wage is the lowest amount of money that a person can be paid. All the states and the cities can have their own minimum wages, but those wages have to be either more or equal to the federal minimum wage. In 2016, the federal minimum wage is $7.25. However, recently there has been calls for the federal minimum wage to be increased to $15. In particular, Bernie Sanders, candidate for 2016 presidential election, made the $15 minimum wage part of his campaign (Tokars). The aspect of making $15 an hour is quite appealing, but when the proposal is evaluated it presents some serious problems. In light of these problems, the federal minimum wage should not be increased to $15.
One of the chief issues with a $15 minimum wage is its effects on the inexperienced workers. In the event of the increase of minimum wage …show more content…
Some businesses can choose to reduce their number of employees to make up the money spent on higher wages. In such case, they will demand more work from their remaining employees. They can reduce the time allotted to a certain task; forcing people to complete tasks in less time. They can also reduce the amount of increment in the wage, they can demand better attendance from their employees or they can terminate employees with low performance rather than giving them time to improve their performance (Federal Minimum Wage). Moreover, if a city chooses to implement the $15 minimum wage, the business can move over the local borders to areas with a lower minimum wage. With the increase to $15 minimum wage, there is also a chance of an increase in undocumented work among immigrants (Holzer). Businesses exist to make profits and if the increase in the wages affects those profits then business will find ways to make up those profits even if it means difficulties for the
One of the chief issues with a $15 minimum wage is its effects on the inexperienced workers. In the event of the increase of minimum wage …show more content…
Some businesses can choose to reduce their number of employees to make up the money spent on higher wages. In such case, they will demand more work from their remaining employees. They can reduce the time allotted to a certain task; forcing people to complete tasks in less time. They can also reduce the amount of increment in the wage, they can demand better attendance from their employees or they can terminate employees with low performance rather than giving them time to improve their performance (Federal Minimum Wage). Moreover, if a city chooses to implement the $15 minimum wage, the business can move over the local borders to areas with a lower minimum wage. With the increase to $15 minimum wage, there is also a chance of an increase in undocumented work among immigrants (Holzer). Businesses exist to make profits and if the increase in the wages affects those profits then business will find ways to make up those profits even if it means difficulties for the