The Federal Minimum Wage Reform Essay

821 Words Sep 27th, 2016 4 Pages
The federal minimum wage was passed in order to help lower income families afford higher quality goods. These goods can either be simple or complex. For example, purchasing a bed, being able to ride the bus, or being able to afford Internet. These are specific examples that will increase the standard of living. Workers who do not have the luxury of obtaining a higher education are usually stuck working at lower skilled job positions. Alternate forms of labor always threaten these certain positions. “A cashier with few skills who, following the introduction of a high minimum wage, becomes permanently more expensive than a self-service checkout machine will have no such luck” (A Reckless Wager, 2015). Companies will always look to cut costs and operate at their equilibrium. Increasing their cost for labor will provide them with an incentive to look at cheaper, more efficient alternatives. Examples of this form of thinking are relevant throughout history. Replacing human labor with technology will decrease not only the cost for that certain position, but it will reduce the risk the company takes by not having to hire human labor. Raising minimum wage may not benefit lower income families. In fact, a raise in the minimum wage could harm the families who work in lower skilled positions. Companies, who are now required to pay their unskilled employees a higher wage per hour, will indeed cut their costs as they see fit. Lower positions within a certain company or industry may…

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