Pros And Cons Of Raising Minimum Wage

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Last year, President Obama raised the national minimum wage from $7.25 an hour to $9 minimum. Many people disagree on whether raising minimum wages is constructive for the economy because there are many pros and cons to raising minimum wage. Some say raising minimum wage would have a positive affect on the economy. Furthermore, with more money to spend increases would likely be shown in both gross national product sales as well as an increase in taxes derived from sales taxes which strongly benefits the government. However, on the other hand, the anti-minimum wage faction advocated that increasing minimum wage could cause more unemployment. However, Larry Hunter who was a chief economist for the Joint Economic Committee did a study in 1992, …show more content…
On the other hand, some argue that raising minimum wages would cause workers to lower their drive to perform adequately. However, an example of a company that disproves this theory is Wegmans Food Market. This company has maintained a positive reputation for paying their workers above the minimum wage. Many agree that this company already realizes that that providing their workers with suitable wages would create a collective success and shared rewards. In other words, they believe that if they meet the needs of their workers, consequently, they will achieve their personal business goals. This philosophy began immediately when Robert Wegman founded the company in 1950. He increased salaries for all of his employees as well as provided benefits for them. Since the company emphasizes the importance of teamwork and providing their workers benefits and higher wages, Wegmans maintains a respectable reputation amongst their employees and outsiders, in addition to improving productivity and reducing turnover. They can be used as an ideal example of how a company should function. This would be a win-win resolution, causing companies as well as workers to …show more content…
Some argue that it would cause employees to not perform as well and it would cause unskilled workers to lose their jobs. Others argue that it would increase employment, productivity from workers, reduce employee turnover, and the more money workers make, the more they have to spend on goods and services. This would be a win-win for employees as well as employers and companies as a whole. A few examples that proved this point was that Wal-Mart increased their wages researchers have noticed the economy is continuing to strengthen, Wegman’s Food Market has a fabulous reputation because they provide their workers with benefits and higher pay which cause satisfied workers which consequently encourages workers to advance in their productivity, and last but not least, the healthcare world would largely benefit through raising wages. Through these observations, the pros seem to out way the cons of raising minimum wage. Furthermore, when workers have jobs and make enough money to live off of, they are able to spend more on goods and services, benefiting those companies, and the government does not need to spend as much to support low-income families. Therefore, raising minimum wages would be a positive occurrence that overall helps improve the

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