Pros And Cons Of Minimum Wage Essay

Firstly, minimum wage will result in high prices of products. If the minimum wage continues to be a mandate which is a relatively expensive amount for a minimum wage, the businesses will have to increase their product prices. For example if Hungry Jack employs 10 people for $15.95 hourly each because of the minimum wage, with the abolishment it can employ 15 people for $10 hourly each. This therefore will increase the work efficiency and decrease the price of the goods. Minimum wage sectors increases the retail price of 0.5 to 2% each year. These firms will cope with the minimum wages by raising prices of goods and services. …show more content…
People may believe that businesses have a wide range of money to supply a good amount of money however this is certainly not the case for the small businesses. This legislation means that small businesses and franchises would not be able to keep up with the minimum wage and will therefore raise the prices. Imagine a small, local florist who doesn’t own so much. If he or she employs 2 workers he or she will have to pay $1212.80 totally in a week, excluding his or her own expenses which are far too high for such a small business to cope. Therefore the florist will raise the prices of his or her plants. This may not be a problem in affluent areas but the consumers of the less prosperous areas will not buy flowers with an expenditure of $15. This florist will certainly go bankrupt, considering that 90% of businesses fail in the first few weeks! Therefore, small business would be put under great tension by having minimum wage. On the other hand the minimum wage is a danger for the charitable organisations. These people who work in non-profit organisations do not and should not have any sort of money incentives. If this legislation is still enforced in the future the charity organisations will defeat their purpose by receiving some sort of good payment which is deserved more to the purpose of the organisation. Therefore minimum wage should be

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