Minimum Wage Benefits

Words: 1840
Pages: 8

In today’s society—even though there are those that still depend on these types of jobs for survival—workers are using these positions more often as a starting place for entering the workforce. These entry-level jobs are a great way to earn a minimal amount while gaining experience and developing the knowledge, skills, and abilities that are most likely to be needed for higher paying jobs. Workers are not held to earning the minimum wage for as long as many might think. Oftentimes they do not hold these positions for long before they have developed a higher level of productivity and are rewarded with raises and promotions. If used properly as a method for gaining experience and increasing personal efficiency, minimum wage jobs serve their purpose and should be considered a valuable asset to …show more content…
Higher costs of labor tend to lead to higher costs of production. This can force businesses to develop strategies that will allow them to attain the same levels of current production but in a more efficient manner. A common strategy is to replace existing workers with those who are more productive. The idea is that by utilizing workers who are more productive, businesses can employ fewer, which should help to account for the increase in labor costs. While this may be beneficial to businesses, it can be absolutely devastating for the American workforce, especially those who have not yet had the opportunity to develop any work experience. As New American contributor William P. Hoar puts it: “ If a would-be employee in today’s weak market is not worth $7.25 per hour, the current federal mandate pushing that minimum even higher will surely accomplish at least one thing: It will hurt employment even more” (Hoar, 2013). In essence, minimum wage increases have the potential to eliminate low-skilled positions including entry-level