There is one thing that every country in the world has with one another. Each country in the world has its wealthy areas and poverty-stricken areas. The United States is a country that both has wealthy and poor areas, yet it is still one of the wealthiest countries in the world. Recently, many Americans have been protesting for the national minimum wage to increase. I am opposed to the United States raising the minimum wage because there will be more negative effects on the economy than positive effects. Many Americans have been pushing for this increase in the minimum wage but they don’t consider all of the negative factors that come with the increase. States are able to regulate their minimum wage depending on the economic state and the
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The whole purpose of raising the minimum wage is to benefit the working class and the lower class but they will be losing their jobs. Since these companies would have to pay their employees $15 an hour there would be many repercussions companies would take. From a business standpoint, profits are going to decrease so as a business owner you have two options. You could either raise the prices of the goods or get rid of some unskilled employees. Bigger companies such as Amazon, Walmart, Nike and etc. could afford these wage changes but it may result in job loss for unskilled workers. These companies also have the option of resorting to automation rather than human labor. In the end, companies would only have to purchase the machine and just pay for the electricity it uses. This conversion will save them much more than staying with human labor because they won’t have to pay the minimum wages, benefits, and a machine is more productive. In an article by digital trends, Lulu Chang stated “The Forum estimates that a grand total of 7.1 million jobs will be lost as a direct result of many of our proudest innovations, and that two-thirds of these jobs will be concentrated in the Office and Administrative job family” (Chang). Very soon, people are going to be complaining about the millions of jobs lost due to these automation
The whole purpose of raising the minimum wage is to benefit the working class and the lower class but they will be losing their jobs. Since these companies would have to pay their employees $15 an hour there would be many repercussions companies would take. From a business standpoint, profits are going to decrease so as a business owner you have two options. You could either raise the prices of the goods or get rid of some unskilled employees. Bigger companies such as Amazon, Walmart, Nike and etc. could afford these wage changes but it may result in job loss for unskilled workers. These companies also have the option of resorting to automation rather than human labor. In the end, companies would only have to purchase the machine and just pay for the electricity it uses. This conversion will save them much more than staying with human labor because they won’t have to pay the minimum wages, benefits, and a machine is more productive. In an article by digital trends, Lulu Chang stated “The Forum estimates that a grand total of 7.1 million jobs will be lost as a direct result of many of our proudest innovations, and that two-thirds of these jobs will be concentrated in the Office and Administrative job family” (Chang). Very soon, people are going to be complaining about the millions of jobs lost due to these automation