The minimum wage currently sits at $7.25/hour and political parties are pushing to raise this number dramatically by as much as $5. As the entry-level wage for most people entering the workforce, it can prove to be difficult to maintain acceptable living conditions working at this pay grade. As a result, there has been a general clamoring for this wage boost. However, there would be severe repercussions to the economy should this occur. If the minimum wage was increased, then people would have a harder time in general with the affordability of goods and the rate of unemployment, so it would be better to either keep the minimum where it is or reduce it.
If we were to raise the minimum wage (say, to $10.10), many companies and businesses would …show more content…
You would think you would be excited, but then the company you work for then begins downsizing and outsourcing to prevent excessive expenses and you are laid off. Now you are out of a job while potential jobs are being removed or replaced by automated systems, more experienced workers, and . However, if the minimum wage was decreased, you could be working with many more employees since the company has the funds to hire more people, effectively reducing your overall workload. The reduction in labor costs could in turn lower the prices of many necessities that you need. That drop in prices then leaves you with more money to help pay for many other things that would not be affected by the drop in minimum wage.
As a result of a reduction in minimum wage, many people would be better off or in better financial standing thanks to the increase in the employment rate. Companies would also be producing more and gaining more with a larger workforce with lower pay and they would not need to keep prices for goods and services as high, which takes the stress off of the wallets of consumers. An increase in minimum wage may very well seem like it would be a great benefit to the economy, but the side effects of a wage boost prove it to be more of a bane to many workers
If we were to raise the minimum wage (say, to $10.10), many companies and businesses would …show more content…
You would think you would be excited, but then the company you work for then begins downsizing and outsourcing to prevent excessive expenses and you are laid off. Now you are out of a job while potential jobs are being removed or replaced by automated systems, more experienced workers, and . However, if the minimum wage was decreased, you could be working with many more employees since the company has the funds to hire more people, effectively reducing your overall workload. The reduction in labor costs could in turn lower the prices of many necessities that you need. That drop in prices then leaves you with more money to help pay for many other things that would not be affected by the drop in minimum wage.
As a result of a reduction in minimum wage, many people would be better off or in better financial standing thanks to the increase in the employment rate. Companies would also be producing more and gaining more with a larger workforce with lower pay and they would not need to keep prices for goods and services as high, which takes the stress off of the wallets of consumers. An increase in minimum wage may very well seem like it would be a great benefit to the economy, but the side effects of a wage boost prove it to be more of a bane to many workers