Minimum Wage Problem

It is a known fact that workers in the United States are the most productive in the world and this is because they world longer hours than any other developed country. The U.S. is a country where there are more than US$13 trillion year in income annually. However, there is a prevalence of stagnant wages and family incomes. There is rising income insecurity among the citizens. With the eroding health care benefits and disappearing pensions, workers are at a loss. There are approximately four million workers in the country who are earning the minimum wage of US$7.25 per hour (US Bureau of Labor, 2011). In the scenario, one problem at hand is how to communicate with the employees of a small business that giving them double (US$15/hour) of what they are presently receiving. Another problem of the employer is how …show more content…
Declining the clamor of raising the hourly wage would mean workers leaving the company. However, since this company in the scenario are mostly composed of working students, they might just continue to work even with the US$7.15/hour. Young workers, teenage workers, working students, interns, and those who are on-the-job training can be limited by minimum wage. This will permit experience to those who need it and for those who are experienced to be paid more. According to Rani et al (2013, 51), analysts claim that trashing minimum wage laws would allow businesses to achieve better efficiency and lower the prices of their products and services. Moreover, non-profit organizations would be encouraged and motivated because they would not be forced to give minimum wages to their volunteers. Small businesses would not go bankrupt or sell expensively because they are not forced anymore. Ethically speaking, the employer would not want to deprive the working students in his payroll to be jobless. Thus, he can offer the first recommendation or the second one that