The minimum wage is the minimum hourly wage an employer can pay an employee for work. Employees that earn the minimum wage tend to be younger (teenagers), and work in businesses like fast food or retail. When the minimum wage goes up, employers are forced to pass costs on to consumers in the form of higher prices, fewer hours and jobs are available for less-skilled and less-experienced employees and it also results in overall job loss. Minimum wage increasing is unfair to people who already are making that much currently, so it shouldn't be going up. There are better ways to help the poor. The cost of minimum wage has to be paid by someone so it's pretty obvious that once businesses are required to start paying their employees more, the prices
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“The most damaging effect is the fact that job loss is concentrated on the least skilled employees—the very individuals that supporters of a minimum wage increase are attempting to help,” Garthwaite said. “These low-skill employees lose their jobs because of increased competition from more experienced and higher skilled employees attracted to the new wage. The end result: Low-skill Americans face extreme difficulty finding the entry-level employment necessary for future economic success.” (Employment Policies Institute). To add onto that, Diana Furchtgott-Roth states, “Young people would be harmed the most by increasing the minimum wage. Almost half of minimum wage workers are under 25, and 19 percent are teens. This group’s unemployment rate is already higher than the 4.9 percent overall unemployment rate” (Furchtgott-Roth). So when employers are required to pay their employees more, they choose workers with more skills and some combine them with technology, such as digital ordering (for example the new kiosks that McDonald’s are putting in where you can order your food on them instead of from an actual person). And like mentioned earlier, as a result of that the low-skill workers lose their jobs. If the minimum wage keeps going up then so will the unemployment rate. Businesses won't need as much labor, and higher wages may encourage more workers to supply that labor. “A 2017 report by McKinsey that looked at the ability of machines to replace human labor drew the same conclusion. The report found that 59% of all manufacturing tasks could be automated using current technology. The most exposed sector is food service, where 73% of tasks could be automated”
“The most damaging effect is the fact that job loss is concentrated on the least skilled employees—the very individuals that supporters of a minimum wage increase are attempting to help,” Garthwaite said. “These low-skill employees lose their jobs because of increased competition from more experienced and higher skilled employees attracted to the new wage. The end result: Low-skill Americans face extreme difficulty finding the entry-level employment necessary for future economic success.” (Employment Policies Institute). To add onto that, Diana Furchtgott-Roth states, “Young people would be harmed the most by increasing the minimum wage. Almost half of minimum wage workers are under 25, and 19 percent are teens. This group’s unemployment rate is already higher than the 4.9 percent overall unemployment rate” (Furchtgott-Roth). So when employers are required to pay their employees more, they choose workers with more skills and some combine them with technology, such as digital ordering (for example the new kiosks that McDonald’s are putting in where you can order your food on them instead of from an actual person). And like mentioned earlier, as a result of that the low-skill workers lose their jobs. If the minimum wage keeps going up then so will the unemployment rate. Businesses won't need as much labor, and higher wages may encourage more workers to supply that labor. “A 2017 report by McKinsey that looked at the ability of machines to replace human labor drew the same conclusion. The report found that 59% of all manufacturing tasks could be automated using current technology. The most exposed sector is food service, where 73% of tasks could be automated”