Why raise minimum wage?
Minimum wage is the lowest wage permitted by law; it sets a precedent for entry-level employees to be paid and for small businesses and large cooperation’s to pay their workers. Unskilled and young inexperienced workers are typically paid minimum wage; they are emerging people dying to develop in society, therefore will to accept minimum wage. According to HR Magazine, “The minimum wage is the floor upon which the entire wage structure is built” (“Should the federal minimum wage be increased?”). Currently the minimum wage is $8.05 per hour, as of January 1, 2016. Raising minimum wage decreases job creation, affects the cost of living by raising the prices of goods, labor, and housing; the minimum wage should hold to …show more content…
Job creation refers to new opportunities for paid employment, especially for those who are unemployed; jobs are created when the price of goods and services increase, and when the demand for consumer goods increases. Job creation will go down because “Higher minimum wage make it harder for unskilled workers to get started in the job market” (“Should the federal”). When companies cut jobs and restructure their businesses to remain profitable from a minimum wage increase job creation falls. In addition, low and middle income unskilled workers will face more competition, which makes it harder for them to get entry level jobs. Raising the minimum wage raises the wall workers jump prior to being hired, employers will require more qualifications and skills due an abundance of unemployed people seeking …show more content…
Inflation is the rising price of goods and services over time; inflation occurs due to an imbalance between demand and supply, and changes in production costs. Raising minimum wage will force small businesses that consist of mostly minimum wage workers out of business due to increased production and operating costs. Consequently, large businesses will monopolize their respective industries because of the minuscule competition; as a result, large businesses will raise the price of goods and services causing inflation. When you raise the price of employment, businesses have to pay existing workers more and fire some existing employees. Therefore, businesses will raise the price of their goods and services to combat increased operating costs which causes
Minimum wage is the lowest wage permitted by law; it sets a precedent for entry-level employees to be paid and for small businesses and large cooperation’s to pay their workers. Unskilled and young inexperienced workers are typically paid minimum wage; they are emerging people dying to develop in society, therefore will to accept minimum wage. According to HR Magazine, “The minimum wage is the floor upon which the entire wage structure is built” (“Should the federal minimum wage be increased?”). Currently the minimum wage is $8.05 per hour, as of January 1, 2016. Raising minimum wage decreases job creation, affects the cost of living by raising the prices of goods, labor, and housing; the minimum wage should hold to …show more content…
Job creation refers to new opportunities for paid employment, especially for those who are unemployed; jobs are created when the price of goods and services increase, and when the demand for consumer goods increases. Job creation will go down because “Higher minimum wage make it harder for unskilled workers to get started in the job market” (“Should the federal”). When companies cut jobs and restructure their businesses to remain profitable from a minimum wage increase job creation falls. In addition, low and middle income unskilled workers will face more competition, which makes it harder for them to get entry level jobs. Raising the minimum wage raises the wall workers jump prior to being hired, employers will require more qualifications and skills due an abundance of unemployed people seeking …show more content…
Inflation is the rising price of goods and services over time; inflation occurs due to an imbalance between demand and supply, and changes in production costs. Raising minimum wage will force small businesses that consist of mostly minimum wage workers out of business due to increased production and operating costs. Consequently, large businesses will monopolize their respective industries because of the minuscule competition; as a result, large businesses will raise the price of goods and services causing inflation. When you raise the price of employment, businesses have to pay existing workers more and fire some existing employees. Therefore, businesses will raise the price of their goods and services to combat increased operating costs which causes