Raising The Minimum Wage

1979 WordsMay 10, 20168 Pages
Research Raising the minimum wage can result in job losses due to lower profits for businesses. It can also potentially decrease employee hours by changing them from full time to part time. Additionally, it may reduce the full time benefits that they receive. If this were to happen, then the employees affected will actually be earning less than they did before the increase. For example, from the Article Maximum Divide on Minimum Wage (Mejeur, 2014), they state, “Labor costs are the largest share of the budget Mandatory hourly wages mean that businesses will be forced to cut jobs or reduce hours to maintain their bottom line”. This shows that when businesses are forced to spend more money, they lose profits that could have helped create more jobs and company expansion. If they are tied back due to be forced to increase wages without economic justification, then companies in America will not be improving, but rather just surviving. Since the overall goal for most businesses is to improve profits and enlarge their businesses, it is safe to assume that, in order for companies to survive, that the minimum wage needs to stay the same unless there is viable economic justification to do so. Artificially being forced to increase the minimum wage due to a government sanction or mandate is ill advised. If an increase in wage needs to be implemented, then the government needs to create policies that aid economic expansion for companies to be able to afford it. These policies could

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