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Should Minimum Wage Be Increased

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The Minimum Wage: To Raise or Not To Raise?

This article is addressing to the problem low-wage workers are facing with the rate of minimum wage in the United States. The question here is whether or not the minimum wage should be increased. There are many factors that must be considered in order to answer this question and at the same time understand the “trade-off” and risks increasing the minimum wage can result in for the businesses analyzing the basic principles of economics.

For instance, if the minimum wage increases, businesses will be forced to react and adapt to the reformed budget situations they would face. Businesses must produce profits in order to function correctly and be lucrative, but in the case minimum wage is raised; either the business increases the price of the commodities or reduces its expenditures. By raising the price of a commodity the business encounters a problem, as the relation between demand and supply is negative, meaning that if the price for a specific commodity increases the demand for that commodity will eventually decreases, the business will reduce its profitable characteristic because consumers …show more content…

The implementation of technology for a business is the perfect alternative for maximizing profits by minimizing costs of production. As technology does not require a wage payment and can have limitless performance at work, machines can easily replace a large percentage of personnel as hand labour is not as efficient as the work a machine can do compare to a single person. This is why technology is a more profitable way of production, reducing the total costs in order for the firm to maximize productivity at the lowest possible cost, resulting in a profitable

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