Waiters model of minimum wage is different to the normal minimum wage job because although they only get two dollars and twenty five cents in most cases, they will earn above the federal minimum wage in tips. If they don’t earn up to seven dollars and twenty five cents an hour, the employer will have to pay them up to it. This type of model works because tips are based on menu prices, so as menu prices go up, so do tips (Simpson A.9).
This is what makes being a waiter/waitress, so appealing to people that have the level of education of a minimum wage job, but want to make more than the minimum wage. This model is different to the typical minimum wage job, which is why this hasn’t had as much controversy compared to the normal …show more content…
There could be a possibility that the pay for higher experienced employees get some of their wages cut down.(Plumer) Why would this would be good? Poorer people would then possibly spend more money to help the economy. There is also a bad to this though. The people in power would not like losing some of their wages to lower experienced workers, and would most likely go against a new policy.
Another benefit of raising minimum wage would be that people could see it as an incentive to make them work harder.(Plumer) If they get so that much more money, they will feel better about working harder because they feel like they are being rewarded more. It makes sense but after awhile, the workers will fall back into the mindset that what they are getting isn’t enough after the initial high of getting a lot more money for their minimum