Advantages and Disadvantages of a Minimum Wage

Even though having a minimum wage helps in many ways and keeps a minimum to what people can work for, it also can do some harm. The minimum wage law does cost the economy thousands of jobs. The essential principle of economics is supply and demand and the minimum wage aspect goes hand in hand with it. In the sense of labor, this means the amount of workers increases and wages increase, and the demand for employees by employers’ decreases as the wage increases. For instance, if an office cleaning job was publicized for hiring. If the wage was $90 per hour, many people would be interested in taking the job. However, if the income was $2 per hour, there most likely wouldn't be anyone to want the job. On the contrary, if the government obligated the owner to pay at least $9 per

What’s in it to lose? Nothing because by doing so it can help to reduce the government welfare spending at the same time helping someone to at least make ends meet. Therefore, raising the minimum wage will help people to take of their family basic needs such as good nutritious food, instead of the unhealthy food, health assurance for them to go to the doctor and a place to stay. People that work minimum wages not always able to afford their basic needs. They sometimes prone to sickness because of their unhealthy lifestyle and with no health assurance they won’t be able to afford to go the doctor or their

The minimum wage requires employers to pay their employees a minimum amount of money which is based on the current version of the law, which is raised every year to adjust the living costs. There are some advantages and

There are 156. 4 million people in the US workforce, however 5.2% of those are unemployed. The federal minimum wage is $7.25 an hour; however, each state has its own laws regarding minimum wage and the amount can be higher or lower than the federal minimum, but the employee receives the higher of the two (2015). A higher minimum wage means that employers are less apt to hire someone. Some experts explain this by saying that if an employer values the job at a lower wage per hour than the minimum wage set by the government, then the employer is less likely to hire someone to fill that role. The employer only wants to hire someone when that person will be able to generate some sort of value for the company and positively affect the bottom line. Another problem with a high minimum wage is that potential employees are less likely to want to work if they are able to receive unemployment benefits from the government that will almost equal that which they would receive from working a minimum wage job (Gillikin).

Minimum wage is the least amount of money that an employer is legally required to pay an employee. It is something that all people in the American workforce know about. It was made to prevent the employer from taking advantage of employees. It is what creates the bare minimum standard of living for the 73.9 million hourly wage workers in the United States. However, there are many different jobs with varying amount of skills that are needed for those jobs. This is where the problem arises because a worker may still be under paid for the job that they do. This problem splits the population into two main groups, one that wants the minimum wage to be raised and another that wants the minimum wage to remain the same, or to even be abolished.

I believe that minimum wage is a drawback for certain people. For the workers, it is simply an upgrade to their life. They get a larger pay, and might be able to draw back on hours. Say they used to get $7.00 an hour minimum wage and now they get $10.00 an hour. So if they worked 10 hours before the minimum wage was raised, they would get only $70.00, but once it was raised, they would get $100. So each week if they worked 10 hours a day, before the minimum wage was raised they would receive $490. But after the minimum wage they would recieve $700. To strech that even further, each year before the minimum wage was raised, they would receive 25,480 dollars. But when it was raised, they earned 36,400 dollars a year. But for the employers, it

An argument on the pro raising the minimum wage side is by raising the pay for low income household employees, they will be able to spend more. This situation helps the individual household because it is now able to buy more necessities and or wants. The market is also benefitted because more spending is occurring which increases the overall market activity.

Minimum wage has many advantages from a microeconomic and macroeconomic standpoint. A key advantage is the idea that minimum wage allows workers to earn enough money to live on. Thus, it ultimately leads to a reduction in poverty. Another key advantage is that minimum wage can actually create jobs and grow the economy. This would happen by having more money flow through the economy, because then household spending will increase (ProCon.Org). Minimum wage also allows workers to support their families. Without a minimum wage, many families will not make as much money, therefore, it will be very difficult for the workers to support their families. Minimum wage also ultimately reduces taxes, because instead of indiviuals being unemployed and on public assistance, the person is working. This relieves the load of taxes on the state by not having people on different public assistances, such as food stamps and welfare (ProCon.Org). Another pro of minimum wage is that it is another incentive for high school workers to get in the door early of unemployment and gain experience. This can help them in get a job in the future(Root). The issue of minimum wage has an abundance of pros.

How would a minimum wage increase effect employment and family income, businesses, and the economy are just a few of the main arguments. Typically any increase in wage also increases income right? Raising the wage in the perception of small business is not usually a good move for the economy. Poverty is an important factor when it comes the economy and minimum wage could be the solution to that.

Having a higher minimum wage would mean that the job is worth more, making the job market more competitive. Employers are now forced to spend more per employee, causing more skilled and experienced workers to be desired. Companies may even begin to lay off employees they can’t afford to pay or begin to hire less (Geraghty). The combination of less jobs with stricter requirements would leave inexperienced young people unable to break into labor force, adding to the growing numbers of unemployed workers

Initially the minimum wage law was introduced to reduce poverty and inequality. Proponents of the Minimum wage do believe that these laws attain to these objectives. They do guarantee that the workers at the bottom level of the pay scale are being treated right and don’t get underpaid as the result of the belonging to a particular race or sex. They also guarantee that the workers are receiving a reasonable compensation from the employer (Cho, n.d.). The proponents of minimum wage also believe that it may have a positive reflection on the work ethics of the low-pay workers, thus it may benefit employers. It is also might encourage more people to join the workforce instead of trying to gain earnings by the means of unlawful methods, such as prostitution, selling narcotics

There are many pros to increasing the minimum wage, most of which are simple enough to understand and make someone think that there is no reason not to increase the minimum wage. The first and most important benefit of increasing the minimum wage is that workers are able to work to earn a living wage, a wage that is high enough that workers are able to maintain a normal standard of living. Next in line is that a higher minimum wage will increase workers incentive to work, and also increase the incentive of the population not in the labor force to join the labor force and seek jobs. Going off that point, increasing the minimum wage will reduce the need for social programs, such as unemployment, welfare, SNAP, etc., because there will be fewer people living at or below the poverty line and that qualify for these programs. Moving along the list of advantages, increasing the minimum wage will also increase the amount of money workers

If it was not for minimum wage then many unskilled workers would not be able to get a job due to the fact that business owners would only hire very skilled workers to complete a job because they're paying more money, so they would expected a perfect or “better” job being done. If the unskilled workers have a job then they will be able to pay bills, buy a house, car, and food. With the unskilled workers being able to work poverty will be reduced and many people will not

A minimum wage is the lowest hourly amount that employers may legally pay to their employees. This also means it is the lowest wage at which workers may sell their labor. Minimum wages laws exist in many different cities and countries, but opinions about their advantages and disadvantages vary throughout. Supporters of the minimum wage say it increases the standard of living of workers, reduces poverty, reduces inequality, boosts morale and forces businesses to be more efficient. Opponents of an increase in minimum wage say it increases poverty, increases unemployment and damages businesses.

Moving along the list of advantages, increasing the minimum wage will also increase the amount of money workers have, which, in turn, will inspire them to increase their consumption and pump their extra money into the economy. If workers have more money going into their pockets from increased wages, the income effect comes into play, and provides an incentive to go out into the market and buy goods and services. In an article printed by The New York Times, it was also pointed out that raising the minimum wage would decrease labor turnover. This is because if workers are paid more, they have less incentive to leave their current job and seek a higher paying job.