Others would argue that families live beneath the poverty line due to underemployment, not the minimum wage. Lower unemployment and higher wages increase tax revenues. Many economists and business executives who point out that labor is a major cost of doing business argue that businesses will be forced to cut jobs to maintain profitability.
Would you even start such a business, knowing a minimum wage increase could cut deep into your profits? This situation often results in stagnant growth. Neither employers nor employees would experience periods of feast and famine.
This would raise the cost of living and create a need for further minimum wage increases.
Maverick September 5, — 1: There are not strong arguments both for and against an increase, and the arguments regarding the pros and cons of raising the minimum wage appear to get more heated as the suggested minimum wage level rises. Inthe U. Though some people would lose their jobs, the working poor as a group would benefit.
Businesses may freeze new hires, limiting opportunities for recent college graduates and others entering or re-entering the job market. Trading Center Want to learn how to invest?
Needless to say, smart businesspeople should stay abreast of the ever-important minimum wage issue. Businesses that outsource certain processes to developing nations are generally opposed to minimum wages as a matter of cost efficiency.
However, it can apply to many white-collar workers. The net outcome of an increased minimum wage might be a large number of overqualified workers taking minimum wage positions that would ordinarily go to young or otherwise inexperienced workers.
Consumer economies tend to benefit from minimum wages almost immediately trough increased business activity. Income inequality and fair wealth distribution are two factors of the economy that are kept in check with minimum wages.
Raising the minimum wage without EITC upgrades would help many families, but not necessarily the poorest. Which employees qualify for FSLA exemptions? Some employees would make more, but others would have to seek other employment — stressing the unemployment system.
Raising the minimum wage creates a ripple effect throughout organizations — with positive and negative effects. Putting more money in the hands of people who will readily spend it helps the economy.
Increasing employee morale could easily translate into more tangible benefits, such as increased employee retention and reduced hiring and training costs. In other words, workers who make more money will spend more money. 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 exemption does not apply to manual laborers and public service workers like police officers, firefighters, and EMTs. A boost to economic growth is another potential advantage of increasing the minimum wage, as consumer spending typically increases with increases in wages.
Hirby and Fact Checked by The Law Dictionary Staff The second term of President Barack Obama will always be remembered for the intense debate prompted by minimum wage increases and adjustments.
Some proponents of raising the minimum wage estimate a much larger number of individuals and families escaping poverty. Many people believe that they are too low while others think that governments should not promulgate minimum wages in a free market economy.
In consumer economies and capitalistic societies, businesses tend to react to minimum wage increases by raising the prices of the goods and services they provide. Minimum wages are not a cure for poverty. Employees who are more inclined to stay with a company longer could benefit from greater advancement, and from an overall reduction in job-related relocation expenses.
Corporations may outsource more jobs to countries with lower or non-existent minimum wage standards. Would creating more jobs and more full-time jobs bring more people into the labor force and raise the national standard of living?Raising the minimum wage creates a ripple effect throughout organizations – with positive and negative effects.
For example, if you run a bialy (hole-free bagel) and coffee shop for early-rising lovers of Polish cuisine, an increase in the minimum wage from $ to $ per hour would affect all your workers (and your bottom line). Economists Weigh the Pros and Cons of a $15 Minimum Wage. By Susanna Kim Close Follow on Twitter More from Susanna urging them to raise the minimum wage to $ now $ an hour.
The current minimum wage is $ Former President Obama advocated for gradually raising the minimum wage to about $10 an hour. Recently, the Congressional Budget Office reported, that both sides of the debate held some merit, as there are benefits and some drawbacks to raising the minimum wage.
Increasing the minimum wage would have a ripple effect, raising the incomes of people who make slightly above the minimum wage.
Melissa S. Kearney, PhD, and Benjamin Harris, PhD, of the Brookings Institution found that increasing the minimum wage would result in higher wages not only for the million people earning minimum wage, but. Currently, 29 states and the District of Columbia have a higher minimum wage than the federal rate.
As of July27 cities had also passed laws raising the minimum wage – although some states subsequently passed legislation requiring cities to adhere to statewide minimums.
Increasing the Minimum Wage: Pros & Cons Will Increasing the Minimum Wage Hurt or Help Employees & Businesses? For many American workers, minimum-wage employment was a temporary, teenage condition, as we bussed tables or answered phones or cleaned rooms for tiny paychecks before moving on to more financially.Download