Raising the Minimum Wage
Many Americans have strong views towards the debate over minimum wage. Many believe it should be raised to make it a living wage but what they do not see is the negative outcomes that will occur in return. Business owners often deal with several external factors that have significant effects on their business. Government regulation is an example of a powerful external force. Minimum wage is a national economic policy responsible for many business decisions. Business owners must pay their employees the minimum wage according to federal or state guidelines. The issue is that if the government makes the decision to increase the minimum wage many side effects are soon to follow. While many people see the positives in raising the minimum wage I only see negative results. Minimum wage increase can have severe effects on businesses. Increases in payroll require owners to raise consumer prices on goods and services. Payroll is often the highest expense for some businesses. In result, business owners may have to lay off employees. Employee layoff is usually the …show more content…
Minimum wage increases often bring unskilled or lower-level employee wages closer to the pay individuals with technical or expert abilities. Should an individual with years of training earn the same salary as someone who is hired on the spot? Business owners may need to consider raising wages for individuals with experience to compensate for minimum wage increases. I put my visual argument together the way I did because I want to show the drastic difference between someone who spends time training to reach their job goal and someone who does not. However, he or she still believes that he or she should receive the same salary. Nobody wants to believe the government is shorting him or her but that is exactly what will happen if the minimum wage
Many Americans have strong views towards the debate over minimum wage. Many believe it should be raised to make it a living wage but what they do not see is the negative outcomes that will occur in return. Business owners often deal with several external factors that have significant effects on their business. Government regulation is an example of a powerful external force. Minimum wage is a national economic policy responsible for many business decisions. Business owners must pay their employees the minimum wage according to federal or state guidelines. The issue is that if the government makes the decision to increase the minimum wage many side effects are soon to follow. While many people see the positives in raising the minimum wage I only see negative results. Minimum wage increase can have severe effects on businesses. Increases in payroll require owners to raise consumer prices on goods and services. Payroll is often the highest expense for some businesses. In result, business owners may have to lay off employees. Employee layoff is usually the …show more content…
Minimum wage increases often bring unskilled or lower-level employee wages closer to the pay individuals with technical or expert abilities. Should an individual with years of training earn the same salary as someone who is hired on the spot? Business owners may need to consider raising wages for individuals with experience to compensate for minimum wage increases. I put my visual argument together the way I did because I want to show the drastic difference between someone who spends time training to reach their job goal and someone who does not. However, he or she still believes that he or she should receive the same salary. Nobody wants to believe the government is shorting him or her but that is exactly what will happen if the minimum wage