Why Raising The Minimum Wage Is Good Economics?
Komlos says that the minimum wage in America is lower than other advanced countries like Germany and Switzerland. In addition, he states that the U.S. minimum wage since 1968 has dropped and the unemployment rate has increased. Komlos says that many people in America are without jobs, and the ones with minimum wage jobs find it hard to support their families with their net incomes. The author mentions that many people against the increase of minimum wage, such as multi-billionaire Donald Trump, believe that an increase in wages would create many problems like decreasing employer’s profits, and jeopardizing the work availability for young Americans. However, Komlos says that these problems will not go into effect because of increase in wages. He adds that the unemployment rate for youth workers in Germany and Switzerland are lower than the U.S. even though the minimum wage in both countries is higher than that of the United States. Also by increasing their prices, employers could still make about the same profit regardless of an increase in employee wages (Komlos 1). Although minimum wage increase may seem to concern only a small group of United States citizens, it should concern anyone who cares about the U.S. poverty level and its