Should Minimum Wage Increase?
Minimum wage doesn't seem like a controversial topic. I mean everyone wants to get paid more, and logically it seems as if the world would be better off as people would be making more money. There are many benefits for increasing minimum wage, but there are many reasons as to why minimum wage can't be increased. Every person would probably be better off making more money then they are right now, but increasing the minimum wage could negatively affect the economy, limit budgets, and cause bankruptcy.
Obviously, a positive is that everyone is making more money. Those who earn minimum wage will be better off and more able to support themselves and their families. Increasing minimum wage would reduce poverty, and provide a more stable income to all. Families and people will have a bigger budget and more support. Increasing minimum wage could also increase job growth and increase overall employment, as well as increase overall productivity. Increase in minimum wage could even out the income inequality based on race and gender. Supporting the increase of minimum wage could reduce the rate of hiring and letting people go. All these points are correct, but in theory we won't know how this would affect the economy; if it would be negative or positive. Sure it seems like everyone making more money would better our world, but there are logistical problems and more complicated issues that would rebuttal that.
There are a couple of bigger picture dilemmas that surround this debate. For example, sources claim that increasing the minimum wage would force businesses to lay workers off, close down, go bankrupt, and more. As well, unemployment levels could rise and more people would be out of jobs because of a benefit that truly is not benefiting you at all. Businesses say that they can't afford to pay their employees more than minimum wage. Some say increasing minimum wage will reduce poverty, others say it will increase poverty because of all the jobs that could be lost. With the pay-per-hour increasing, to pay the income for the same hours would cost companies and businesses a lot of money. 60% of smaller companies say that if minimum wage was increased, they would have to close down, and at least reduce their budget (https://minimum-wage.procon.org/). Most small business owners say that they cannot afford to pay more than minimum wage, and that their entire business will close down if they do increase pay on minimum wage.
If businesses had to increase their minimum wage pay, that means that overall prices would rise. An item that could go for $3.95 could end up going for $6.00. This may not seem like a lot, but overall when all the numbers are added up, these businesses are losing money. There is also a concern that teenagers will not be able to find employment if minimum wage is raised. Teenagers normally work for cheaper prices, but if the pay increases then teenagers might not be allowed to work whatever job it is. Low skilled workers would also be affected negatively. Also, if minimum wage were to increase, employers would try to replace workers with machines and robots which would lower the rate of employment.
All in all, raising the minimum wage would benefit the lives of individual people by creating more support and stability for their families, but we won't ever know the results because we have yet to do it. With all the evidence provided, it seems that keeping minimum wage the way it is will keep our country stable, and while raising minimum wage will increase a specific individual everyday life, keeping minimum wage the way it is could keep everyone in a better spot than if the minimum wage income increased.
Everyone thinks about the pros of increasing minimum wage, but no one ever considers the cons. It sounds better. It sounds better to hear that everyone will be earning more money, but there are deeper, more complicated logistics that rebuttal against the idea of raising the minimum wage. I hope that one day we can increase minimum wage, while keeping our economy and businesses stable. Unfortunately, today isn't that day, but when productivity stays up people tend to earn more, and I believe that the minimum wage we have now is fair. I wish businesses could pay more for minimum wage, but that only benefits one person, not the entire country, and the entire country could dis-benefit from this increase. Overall, I think we have to come up with ideas to increase minimum wage. To benefit and improve everyone's income and lives, but we have to keep the country stable as we do it and right now isn't that time. When we can increase minimum wage without ruining our country's economy, that's a day everyone looks forward to, but until then, I feel that we have to look out for the whole country rather than one person, and even that one person could dis-benefit from this increase. All in all, minimum wage is a tricky dilemma. We all want to make more money, but the cost is bigger than just yourself, and that's what I think we need to notice. Thank you. Have a great day.