The federal minimum wage is 7 dollars and 25 cents (“Minimum Wage”). The first minimum wage law was enacted in 1894 in New Zealand (“What is the History of the Minimum Wage”). Minimum wage rates differ between the states and are controlled within the individual state 's (“Minimum Wage”). Over time these rates have increased, but not dramatically. People argue they cannot live comfortably with minimum wages so low. On the other hand, raising wages will hurt labor costs, pricing, non-profit organizations, and international competition (Root). Generally, it will affect areas around the country differently.While some believe the economy will benefit from increasing minimum wage, research has shown it would negatively affect product value, industry
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The major problem with this debate is that it has been done before and the results were not beneficial to most. This debate has been going on for the past years and if this law is passed, it will affect everyone around the country. A majority of small businesses will either go out business or cut part of their staff because of the labor costs. As for non-profit organizations, some will fail because they will be forced to spend more for labor than to keep their current level of services. For those in international competition, it will be more difficult for them to compete with foreign manufactures once prices increase (Root). The people will be affected because there will be inflation, unemployment rates are going to skyrocket, and a majority of family companies are going to go out of business. Timing is also a huge factor because if wages are increased at a poor time, the economy will take a huge downfall. These are only a snippet of the issues raising wages will cause, and who it will …show more content…
Different areas around the country are going to take this differently. For example, a richer community such as New York might benefit from this law whereas a small town might fall apart. This will happen because there are plenty of companies that cannot afford to pay their workers 15 dollars an hour. In most areas, 15 dollars is actually the median wage. Also, research has shown the majority of people earning minimum wage are teenagers (What is the History of the Minimum Wage”).
The Law of Demand is a general rule which states lower prices stimulate demand for that product and higher prices decrease it (“Business Dictionary”). If wages are increased, then the price of products are also going to increase. Therefore, less products will be purchased. With that being said, increasing minimum wages does not obey the Law of
The major problem with this debate is that it has been done before and the results were not beneficial to most. This debate has been going on for the past years and if this law is passed, it will affect everyone around the country. A majority of small businesses will either go out business or cut part of their staff because of the labor costs. As for non-profit organizations, some will fail because they will be forced to spend more for labor than to keep their current level of services. For those in international competition, it will be more difficult for them to compete with foreign manufactures once prices increase (Root). The people will be affected because there will be inflation, unemployment rates are going to skyrocket, and a majority of family companies are going to go out of business. Timing is also a huge factor because if wages are increased at a poor time, the economy will take a huge downfall. These are only a snippet of the issues raising wages will cause, and who it will …show more content…
Different areas around the country are going to take this differently. For example, a richer community such as New York might benefit from this law whereas a small town might fall apart. This will happen because there are plenty of companies that cannot afford to pay their workers 15 dollars an hour. In most areas, 15 dollars is actually the median wage. Also, research has shown the majority of people earning minimum wage are teenagers (What is the History of the Minimum Wage”).
The Law of Demand is a general rule which states lower prices stimulate demand for that product and higher prices decrease it (“Business Dictionary”). If wages are increased, then the price of products are also going to increase. Therefore, less products will be purchased. With that being said, increasing minimum wages does not obey the Law of