Pros And Cons Of Increasing Minimum Wage

Words: 1908
Pages: 8

Dylan Millikin
Advanced English 102
Gary Lowe
April 18th 2017

Minimum wage rate should not dramatically increase Our economy is something that is never truly consistent, it is always fluctuating year by year and day by day. Every solution we create usually ends up failing and causing negative impacts on our economy bringing everyone back to the drawing board. For our nation, it is one of our weakest traits due to our forever rising debt, our constant taxation on every dollar we make for government funds, and further national expenses.

We as a nation will never be able to catch up and pay off the stagnant debt that we currently carry. This meaning that most of the people who inhabit the United States will
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Foreshadowing the effects that inflation will bring to the U.S. economy is frightening, inflation can completely sink the national economy and put this nation as a whole in danger. A quick increase in the minimum wage rate can do a lot of damage to us as a nation but one thing affected tremendously would be the businesses affected by the increase. This would be digging into the company assets more so they can pay their employees more, therefore the business will be looking for ways to save money by budget cutting. Employees will begin to lose their jobs left and right as businesses downsize their staff to meet the criteria for the minimum wage increases. “Opponents of an increase argue that raising the minimum wage would likely result in wages and salaries increasing across the board, thereby substantially increasing operating expenses for companies that would then increase the prices of products and services to cover their increased labor costs” This also brings up the constant occurring problem of inflation, because bringing in higher wages will result in the value of money to substantially decrease in value over a standard time period.This also pertaining to products exponentially increasing in costs. This will cause product prices to skyrocket leaving consumers struggling to afford them. This forces businesses to budget cuts including getting rid of employees, changing the …show more content…
Explaining how hard it is to make a living with low income is exhausting. Working your whole life just to provide a good, substantial life for yourself and or family is forever a challenge that many americans will face in their lifetime. The government and labor unions job is to help you with finances if you contribute what you have to the success of their company when that occurs both parties benefit. “(2) Estimates of the distributional impact of the costs an increase in the minimum wage imposes on the general public are included; and (3) the present study takes into account the fact that higher wage income produced by minimum wage policy will result in lower transfers received and higher taxes paid by low-income households, thereby diminishing the gains in net income in proportion to the beneficiaries’ effective marginal tax rates” (Johnson & Browning). This being stated shows the financial burdens that will still be active and further increase as the minimum wage rate increases. Giving the workers more money will only cause them to give back more money to taxes and daily expenses to follow. Raising the wage rate only makes costs of labor, products and tax rates increase, so in the long run a wage increase would not be earning the workers as much money as they are entitled