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Increasing Minimum Wage Essay

1200 words - 5 pages

Minimum Wage
Weather or not to increase minimum wage is currently a hot topic. Some feel that minimum wage should be increased while others say no. Minimum wage is the lowest wage payable to employees. Minimum wage should not be increased because if it is a lot of current minimum wage workers will be forced out of their jobs and could possibly lose everything.
“The minimum wage makes it illegal for workers to have a job paying less than the minimum wage, and it keeps employers from hiring anyone for less than the legal minimum wage even if people are willing to work for less. If the current minimum wage for low-skilled workers is $7.25 per hour, and Congress mandates a minimum wage of $9 per hour, workers who earn less than that will not remain employed or be hired. In the long run, as businesses switch to labor-saving methods of production, more low-skilled jobs will become useless. In anticipation of a $9-per-hour minimum wage, small businesses are already planning to switch to automated equipment, self-service and new software to save money because low skilled workers will have to be paid more. More jobs will be created for skilled workers but will destroy jobs for low-skilled workers. Politicians promise workers $9 per hour, but that promise can not be kept if employers fire or don’t hire workers who low skilled. Most importantly, if low skilled workers lose their jobs or can’t find jobs making minimum wage, their actual income will be zero.” (James A. Dorn). So if minimum wage is increased the job market could be destroyed for those in the lower class and for the unskilled workforce. “Evidence shows that when the minimum wage is increased there will be less jobs and a more unemployment especially in the long run. If a person with low skill is prevented from getting a job because the minimum wage is higher, they may go on welfare to survive. Without a job, they will become dependent on government to take care of them. Rather than creating good work habits and improving their opportunitiesto get a better paying job, they will be at a dead end. High unemployment rates for teenage workers are because of the minimum wage and the fact that over qualified people can only get a job for minimum wage. The minimum wage also leads to low-skilled workers becoming discouraged and then they stop trying yo get a job. Larger businesses may like an increase in the minimum wage because it will reduce competition from small businesses, just like how unions favor a higher minimum wage to protect their jobs. If the minimum wage causes a company to make less money, there will be less investment in their company, and job growth will slow down drastically. The best way to stimulate the economy and create jobs is to expand free markets, not by increasing minimum wage.” (James A. Dorn). Therefore the minimum wage should be left alone. The economy will grow with things the way they are. An increase in the minimum wage is not nessisary for economy growth.
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