While most people believe minimum wage is a good thing, we’re here to explore both sides of the coin, and show why that may not be the case.
Minimum wage gathers a lot of criticism and debate for the last years. Different arguments are said, but the fact that minimum wage still occurs is because it is needed. In order to understand how minimum wage can affect, we should know first what will be the effect.
Minimum Wage is Right
Minimum wage helps people. It gives families with low-income a little hope to live and carry on. It can possible lift people from poverty. It can also narrow the distance between the rich and the poor. With a minimum wage, employees can make sure that every aspect of his work will be paid consequently. Minimum wage offers a constant supply of reassurance. Even if the job is not that great, the pay is within the minimum wage.
This will encourage people to take on jobs and employment. Knowing that there is a minimum amount of money they could earn, and determined it to be adequate, and then they will be motivated to find a job. The minimum wage will open higher demand for jobs.
However, the minimum wage proves to be inadequate for most people. The minimum wage could not provide an adequate supply of income on poor families. This leads to the factor of raising the minimum wage to some extent.
Minimum Wage is Wrong
Minimum wage may be good for employees, but it still struck a bad taste on companies. The minimum wage can hurt small businesses. Small businesses that can only get a small amount of profit will be forced to pay the minimum wage. Sooner, that business will be bankrupted.
Because of that, companies will be forced to downsize their employees and staff. That is to provide that income that should be within those businesses. Those companies will also increase the price of their end product. If they will have to play the minimum wage, then they would also need money to pay that minimum wage. By increasing the cost of their product, they could fulfill the minimum wage.
As the minimum wage rises, the product of the company will also rise. This will result in an ever continuing inflation that will only lead to destruction. Poor families that don’t even have proper employment will be faced with products that increased its price because of the minimum wage. The employees that also received minimum wage will be faced with a product with an increased price because of the minimum wage that they earned.
What Is Right?
If minimum wage has both negative and positive effect, then it is best to test it and measure what has the more effect. Minimum wage is essential but too much of it is detrimental. There are also other factors in the society to consider. Seeing minimum wage alone as a factor is not effective. The minimum wage will affect the entire market and job markets. If minimum wage will be considered, it is best to only increase it by a certain amount. If it is increased too much, then too much inflation will be the result. It would counter the reason why the minimum wage is imposed in the first place.