Pros and Cons of Raising the Minimum Wage

Pros and Cons of Raising the Minimum Wage WHAT I? MINIMUM W?G?? Basically, the idea of increasing the minimum wage should be welcoming to all parties’ right?We are talking about a raise in income here.Everybody wants a raise, at least that’s what most people think.That’s why it might be surprising that some people think it’s a bad idea to raise wages.But they might have a point.The topic on whether the minimum wage should be raised or not has been a hot topic in recent years, both in the political scene and in the media. Both Republicans and Democrats have spent money lobbying for their own ideas regarding the matter.Some of these ideas are objective, while other are pretty subjective. Everybody has an opinion regarding the matter, I have a feeling you have one too.But before we begin, what is “what is a minimum wage?”A minimum w?g? i? th? l?w??t remuneration th?t ?m?l???r? can l?g?ll? pay their workers.Equivalently, it is the ?ri?? floor below whi?h w?rk?r? may n?t ??ll th?ir labour.Although minimum wage laws ?r ? in effect in many juri?di?ti?n? in th? United States, diff?r?n??? ?f opinion ?xi?t ?b?ut th? b?n?fit? ?nd dr?wb??k? of a minimum wage.Supporters of the minimum wage ??? it increases th? ?t?nd?rd ?f living of w?rk?r?, r?du??? ??v?rt?, r?du??? in??u?lit?, ?nd b???t? morale.In ??ntr??t, ????n?nt? ?f the minimum wage ??? it in?r????? ??v?rt?, increases un?m?l??m?nt (??rti?ul?rl? ?m?ng unskilled ?r inexperienced workers) ?nd i? d?m?ging t? bu?in?????, because ?x????iv?l? high minimum w?g?? require bu?in????? t? r?i?? the prices ?f their product ?r ??rvi?? to accommodate the ?xtr? ?x??n?? of ???ing a higher w?g?.Wh? d? we b?li?v??Well, in this ?rti?l?, we h??? t? l??k at th? ?r?? and cons ?f minimum w?g? raise m?r? critically.But fir?t, an ?v?rvi?wWh?n th? Unit?d St?t?? first set a minimum w?g? through th? F?ir L?b?ur St?nd?rd? Act ?f 1938, th? hourly r?t? ??t ?t 25 cents.Prior t? th?t, during th? Great D??r???i?n, ????l? f??ing up to a 25 percent unemployment w?r? d????r?t? f?r w?rk, ? ? ?m?l???r? could t?k? ?dv?nt?g? and pay v?r? littl?.The minimum w?g? w?? then established t? prevent th?t ?x?l?it?ti?n, said David Cooper, ??ni?r ???n?mi? ?n?l??t ?nd d??ut? dir??t?r ?t E??n?mi? Analysis and R????r?h Network ?t th? E??n?mi? P?li?? In?titut?.With?ut a w?g? fl??r, employers w?uld continue to pay l??? and less, destroying th? purchasing power ?f th? consumers wh? w?uld m?k? less money, C????r ??id. The minimum w?g? then h?l?? mitig?t? th?t imb?l?n?? ?f power between ?m?l???r? ?nd l?w-w?g? w?rk?r?.Th?t 1938 rul? und?rw?nt r?vi?i?n?, in?luding a periodic raising of th? federal minimum wage, which rests at ?n h?url? r?t? ?f $7.25, wh?r? it w?? ??t in 2009, according t? th? Department ?f L?b?ur.S?m? ?t?t?? and cities took it u??n themselves t? raise th?ir minimum wages to mu?h high?r rates, ?u?h ?? New Y?rk City, which shouldcurrently h?v? a $15-??r-h?ur w?g? (b? 2018).As muni?i??liti??, uni?n? ?nd advocates push f?r a high?r minimum w?g? to reduce ??v?rt?, m?n? bu?in??? leaders ?u?h b??k out ?f fear th?t th?ir bu?in????? will fl?und?r wh?n h?ving t? in?r???? ???r?ll costs.Alth?ugh w?g?? rose by $7 ?in?? 1938, ?ur?h??ing ??w?r diff?r? dr?m?ti??ll? ?v?r tim?. Wh?n ?dju?ting f?r infl?ti?n, t?d??’? f?d?r?l minimum w?g? i? about th? same ?? in th? 1950?.At it? high??t point in 1968, th? minimum w?g? ??u?ll?d $10.90 in 2015 d?ll?r?, m?r? th?n $3 ?ff from ?urr?nt ???.Adv???t?? f?r high?r w?g?? ??? t?d??’? minimum wage i? n?t a living wage. “Part ?f th? ?r?bl?m i? th?t w?’v? l?t the minimum w?g? erode f?r ?? l?ng that th?t g?? h?? gr?wn ?ub?t?nti?ll? ?u?h th?t now it’? hard t? even consider bringing th? f?d?r?l w?g? fl??r up t? a level th?t would ?ll?w ??m??n? t? h?v? a d???nt quality ?f lif? wh?r?v?r they may liv?,” C????r ??id.When the minimum wage doesn’t keep ???? with inflation, its ??w?r ?r?d??. “It’s worth less ?nd l??? ?nd l???,” ??id S?lvi? All?gr?tt?, l?b?ur ???n?mi?t ?nd ??-?h?ir of th? Centre ?n W?g? and Employment D?n?mi?? ?t th? University ?f C?lif?rni?, B?rk?l??. “And d?n’t f?rg?t th?t th??? l?w-w?g? workers t?d??, ??m??r?d to th?ir ??unt?r??rt? ?f d???d?? ago, ?r? m?r? ?du??t?d, th??’r? m?r? ?r?du?tiv?, th? ???n?mi? ?i? h?? expanded gr??tl?, ??t th??? l?w-w?g? w?rk?r? ?r? m?king l??? today th?n ?imil?r w?rk?r? did several d???d?? ?g?.”Trends lik? this ?r? wh? unions ?nd ??tivi?t gr?u?? m?r?h and l?gi?l?t? f?r high?r minimum w?g??.THE PROS AND CONS OF RAISING THE MINIMUM WAGETh? debate ?v?r raising the minimum w?g? has b??n a h?t t??i? ?ft?r Pr??id?nt Obama ?x?l?in?d in hi? 2014 St?t? ?f th? Uni?n Address th?t he int?nd? t? r?i?? th? minimum w?g? from $7.25 t? $10.10 ??r hour, ?n in?r???? ?f over 40 percent.Whil? the Pr??id?nt ?nd his supporters ?l?im th?t thi? in?r???? w?uld gr??tl? b?n?fit th? economy ?nd r??ult in n? loss ?f jobs, th? opposition ?l?im? that thi? would b? d?trim?nt?l to minimum wage ?m?l?????, resulting in 500,000 f?w?r j?b?.In th? following ?rti?l?, we’re outlining th? pros ?nd cons of r?i?ing th? minimum w?g?.The PR??Th? argument:Th? F?d?r?l minimum wage ?f $7.25 ??r hour i? far t?? l?w.A full-time w?rk?r â€" 40 h?ur? per w??k f?r 52 w??k? â€" ??rning th? minimum wage i? gu?r?nt??d to liv? ?t th? poverty l?v?l.Raising th? minimum wage i? g??d economics, g??d ??li??, and g??d f?r w?rk?r?. It w?uld r?du?? in??m? in??u?lit? and ??v?rt? whil? boosting gr?wth, with?ut increasing unemployment.A high?r minimum w?g? would ?l?? r?du?? th? F?d?r?l budget d?fi?it by l?w?ring spending on ?ubli? ???i?t?n?? ?r?gr?m? ?nd in?r???ing t?x revenue.Since firm? ?r? ?ll?w?d t? pay poverty-level w?g?? t? 3.6 milli?n people â€" 5 percent ?f th? workforce â€" th??? w?rk?r? mu?t r?l? ?n Federal in??m? ?u???rt ?r?gr?m?. This m??n? th?t t?x????r? have b??n ?ub?idizing bu?in?????, whose ?r?fit? h?v? ri??n to r???rd l?v?l? ?v?r th? past 30 ???r?.Adjusted f?r inflation, the ?urr?nt minimum wage is ?t the same level ?? it w?? in 1956 ?nd reached it? m?ximum inflation-adjusted v alue in 1968, when it was worth $10.89 in today’s d?ll?r?.H?d the 1968 minimum wage grown at th? ??m? r?t? ?? the ???t ?f living it w?uld b? $16 t?d??.And if it gr?w in ?t?? with w?rk?r ?r?du?tivit?, th? minimum w?g? w?uld b? $22 today â€" tri?l? its current l?v?l. Y?t whil? the v?lu? of the minimum w?g? h?? eroded b? 67 percent, ??r??r?t? ?r?fit? have gr?wn b? ?v?r 300 ??r??nt.Th? F?ir Minimum W?g? A?t would r?i?? the minimum w?g? to $10.10 ?v?r thr?? ???r?, and w?uld boost living ?t?nd?rd? f?r ?v?r 25 million w?rk?r?, ?nd m?n? more du? t? the ripple effect.All w?rk?r? ??rning between th? ?urr?nt minimum wage of $7.25 ?nd $10.10 w?uld g?t ?n imm?di?t? b???t in their income.But, so too w?uld workers ??rning ju?t above th? n?w minimum w?g?. And, to m?int?in int?rn?l ??? ???l??, ?? w?uld th? w?rk?r? ju?t above th?m, ?nd so ?n.The ripple ?ff??t ??n boost wages f?r l?w-in??m? w?rk?r? u? t? 25 percent m?r? than th? n?w minimum w?g?, ?r?viding a huge ?nd ??r?l? needed economic stimulus. $10.10, h?w?v?r, is n?t enough to liv? a d???nt lif?.Full-tim? w?rk?r? w?uld still remain n??r th? poverty l?v?l.What is needed is a living wage â€" a w?g? that ensures full-tim? w?rk?r? ??n ?u???rt a f?mil? without government ???i?t?n??.Although ??tim?t?? v?r? by location, ?n h?url? w?g? between $15 ?nd $25 w?uld be enough t? live a d???nt lif? f?r a ?m?ll f?mil?.Many critics think that r?i?ing th? minimum w?g? will hurt ?r??i??l? those w?rk?r? th?t thi? ??li?? i? d??ign?d t? h?l? b???u?? firm? will l?? off w?rk?r? t? ??v? ?n labour ???t?.R?i?ing the minimum wage, ?riti?? ?rgu?, will create more unemployment ?nd more reliance ?n public ???i?t?n??.But th?r? is no ?vid?n?? to ?u???rt thi? ?l?im: ?t?t?? with a minimum wage higher th?n th? F?d?r?l minimum have ?x??ri?n??d faster rates of job gr?wth th?n other ?t?t??.H?w i? thi? ????ibl??When th? minimum w?g? rises, it is u?u?ll? ?h???d in ?v?r tim?, giving firms time t? ?dju?t.As wages ri??, firms b???m? m?r? ?r?du?tiv? ?nd ?ffi?i?nt b ecause high?r wages reduce turn?v?r, ?b??nt??i?m, ?nd hiring ?nd tr?ining ???t?.Each time a w?rk?r ?uit? a f??t-f??d job, wh?r? turnover r?t?? are exceptionally high, it costs the ?m?l???r $4,700 t? replace them. U?ing the l?w ??tim?t? ?f a living w?g?, raising th? minimum w?g? t? $15 w?uld save firm? a total of $2.1 billion, ?ll?wing them to ?v?id l???ff? and ?ff?rd the higher ???t?.An?th?r reason high?r minimum w?g?? d? n?t l??d t? increased un?m?l??m?nt i? that firm? ??n compensate for th? high?r labour ???t? by raising ?ri???.A $15 minimum w?g? w?uld ??u?? firms wh? ?m?l?? l?w-w?g? w?rk?r? t? r?i?? prices by ?nl? thr?? ??r??nt.In?t??d ?f turning t? l???ff?, firm? ??uld also accept ?lightl? l?w?r ?r?fit? in th? ?h?rt t?rm ?nd, instead ?f engaging in ?t??k buybacks which ?nri?h stockholders, ?h?r? with their workforce in the fruit? of this gr?wth.But, ?v?r th? l?ng?r t?rm, ?? incomes ri??, ??n?um?ti?n will in?r???? leading, ultim?t?l?, to high?r profits.As bu?in????? ?x??ri?n?? gr eater d?m?nd and ??l??, they ?r? lik?l? t? hir? more w?rk?r? ?v?r tim?.This w?uld ??rv? ?? a stimulus that ??uld h?l? workers, firms, ?nd the economy ?? a whole.Sm?ll firm? w?uld face a ????i?l ??t of ?h?ll?ng?? ?in?? th?? operate with thinn?r ?r?fit margins.With the additional tax r?v?nu? g?n?r?t?d b? higher incomes ?nd in?r????d gr?wth, coupled with r?du??d ???nding ?n in??m? ?u???rt ?r?gr?m? f?r l?w-w?g? workers, small bu?in????? ??uld b? given tax credits to ?ff??t th? cost ?f a high?r minimum wage, ?n?bling th?m t? ?v?id layoffs.B? f?iling t? ?n?ur? the minimum wage k???? pace with th? ???t ?f living ?nd w?rk?r productivity, ??li??m?k?r? h?v? ?r??t?d a ?itu?ti?n where full-tim? workers ??rning th? minimum wage h?v? to r?l? ?n ?ubli? ???i?t?n?? t? make ?nd? m??t.Pr?gr?m? ?u?h as th? E?rn?d Income Tax Cr?dit, M?di??id, Su??l?m?nt?l Nutrition A??i?t?n??, and T?m??r?r? A??i?t?n?? t? Needy Families ???t t?x????r? billi?n? ?f d?ll?r? ???h ???r.Half ?f thi? ???nding goes t? w?rking ?? ??l? ??rning l??? than $10.10 per hour. Raising the minimum w?g? t? this ?m?unt w?uld l?w?r welfare r?ll? b? 1.7 milli?n people and r?du?? g?v?rnm?nt spending ?n welfare ?r?gr?m? b? $7.6 billi?n ??r year.Th? minimum wage h?? been t?? l?w f?r t?? long. In ?n era wh?n Wall Street b?nu??? are twice the ?m?unt ??rn?d by ?ll minimum w?g? w?rk?r?, it is clear th?t bu?in????? ??n ?ff?rd t? b???t th? ??? ?f th?ir l?w??t ??id w?rk?r?.140 cities h?v? ?n??t?d living w?g? ?rdin?n??? ?nd 29 states and the Di?tri?t of C?lumbi? have a minimum wage higher than the F?d?r?l minimum, ?nd n?n? ?f th??? ???n?mi?? h?v? imploded.R?i?ing the minimum w?g? i? g??d ???n?mi?? and g??d ??li??.It is tim? that businesses ?t?rt paying their f?ir ?h?r? ?f w?g?? ?? that taxpayers don’t h?v? pick u? the slackHere are the Bullet Points:E??n?mi? Stimulu?: Raising th? minimum w?g? m??n? minimum w?g? w?rk?r? h?v? m?r? m?n?? t? ?x??nd which m??n? more money ri??l?? throughout the ???n?m? as minimum wage employees ?r? ?b l? t? ???nd m?r?.M?r? ????rtunit? f?r j?b?: If th??? minimum w?g? employees ?r? ???nding more, th?n bu?in????? ?r? earning more ?nd n??d to hire m?r? ?m?l????? to k??? u? with th? increased sales fr?m th? minimum wage employees wh? are bu?ing m?r?.R?du??d Ex??n?? for S??i?l Programs: Em?l????? ?urviving at minimum wage are ?l?? ?ft?n the ??m? ????l? wh? mu?t r?l? on ?dditi?n?l ?u???rt of government run social programs to support themselves ?nd their families ?n ?u?h a ?m?ll ?m?unt ?f income. R?i?ing minimum w?g? means some ?f th??? ????l? w?uld b? able t? b?tt?r support themselves with?ut leaning ?? h??vil? ?n ???i?l ?r?gr?m? ?nd thi? w?uld ultimately m??n l?w?r taxes ?r a r??ll???ti?n ?f th??? fund? t? ?u???rt ?th?r n??d?.D??r????d Turn?v?r Rate: Em?l????? wh? ?r? making a high?r minimum w?g? f??l more comfortable and ??ti?fi?d in th?ir minimum w?g? j?b? meaning th?? are less likely t? quit. This means there w?uld b? a l?w?r turn?v?r rate, whi?h r??ult? in f?w?r expenses to hire an d tr?in new ?m?l?????.Inflation: The f?d?r?l minimum w?g? needs to b? r?i??d in ?rd?r t? ????unt for inflation, whi?h r?i??? ?v?r? year ?nd th? minimum w?g? h?? only been ri??n three tim?? in th? past three d???d??.More money for social security: Slightl? m?r? r?v?nu? f?r th? g?v?rnm?nt would b? g?n?r?t?d fr?m ???r?ll t?x?? f?r ???i?l ???urit?.Low impact on unemployment: Studi?? ?h?w graduated increases in the minimum wage h?v? a low im???t ?n un?m?l??m?nt.Reduced gender and race based income inequality: In?r???ing th? minimum w?g? ??uld help r?du?? g?nd?r- ?nd r???-b???d in??m? in?qu?lit?.Poverty reduction:  A ??r??n wh? w?rk? full tim? earning th? f?d?r?l minimum wage would m?k? $15,080 a ???r before t?x??, which i? ju?t b?r?l? ?b?v? th? ??v?rt? level. A f?mil? ?f f?ur with two working ?dult? earning minimum wage w?uld b? living below th? ??v?rt? l?v?l.More money in peoples pockets: B? ?utting m?r? m?n?? in ????l?’? ???k?t?, th?r? will b? m?r? ???nding in th? ???n?m?.Minimum wag e should keep up with inflation: Inflation ri??? ?v?r? ???r, but th? f?d?r?l minimum wage h?? b??n raised ju?t thr?? tim?? in th? last three decades. Th? f?d?r?l minimum w?g? would need t? b? $10.74 in order to ????unt for inflation over the ???t 40 ???r?.The ??N?The ?rgum?nt:Raising the minimum w?g? ???t? jobs.A r???rt b? the Am?ri??n Action F?rum â€" a policy in?titut? offering r????r?h, ?n?l??i? and ??luti?n? to ??li?? ?r?bl?m? â€" found a $1 in?r???? in the minimum wage leads t? a 1.48 ??r??nt increase in un?m?l??m?nt.H?w ??n a $1 r?i?? h?v? ?u?h n?g?tiv? ??n??qu?n????It i? ???i?r to und?r?t?nd if ??u put yourself in a bu?in??? ?wn?r’? ?h???.Im?gin? ??u opened a small retail ?t?r? in Louisiana l??t ???r.Y?u make ?n?ugh m?n?? to r?m?in open, but ?? a n?w bu?in??? tr?ing to t?k? ?ff, you ?r? ?n a v?r? tight budg?t.Y?u h?v? ???r?xim?t?l? $42,000 a ???r t? ???nd ?n labour, which you divid? b?tw??n 5 part-time employees.E??h w?rk?r ?l??k? ?b?ut 20 h?ur? a w??k at minimum wage, ?? a fter ??u f??t?r in th? t?x?? you have t? ??? ?n t?? of ???h dollar, the annual ???t ?f your ?m?l????? i? ?b?ut $41,500.A $1 in?r???? in the minimum wage will increase l?b?ur costs b? n??rl? $6,000 a year, m?ving th? ?nnu?l cost ?f your employees t? th? n?ighb?urh??d of $47,200.Y?u d? n?t h?v? th? budg?t to accommodate thi? ?xtr? $5,200, ?? wh?t do ??u d??Th??? high?r labour costs will f?r?? ??m? employers to find cheaper w??? t? get the job d?n?.Employees that ?r? n?t essential could be l?id ?ff, or ??m?ut?r?, ?u?h ?? ??lf-?h??k?ut m??hin?r?, ??uld replace the role of ????l? in the w?rk?l???.D??tr??ing j?b? i? not a productive w?? to fight ??v?rt?.Secondly a minimum w?g? in?r???? ??uld make th? ?t?t? less ??m??titiv?.If the minimum w?g? i? increased, d? n?t ???um? that l?w-???ing jobs will b? all that is at ?t?k?. The repercussions ??uld b? much greater.In th? south, T?x??, Mi??i??i??i, Al?b?m?, T?nn????? and K?ntu?k? d? not h?v? minimum wages ?b?v? th? f?d?r?l minimum.If a bu?in??? r?li?? ?n a l?rg? numb?r of minimum w?g? ?m?l?????, will it l???t? ?r remain in Louisiana when ?? m?n? other ?t?t?? in it? r?gi?n have lower labour ???t??If a business r?l???t??, th?t puts ?ll ?m?l????? at risk ?f l??ing their j?b, n?t ju?t th??? making minimum wage.And if a bu?in??? i? l??king to open or ?x??nd in th? ??uth???t, and plans t? depend on m?n? low-wage ?m?l?????, even a min?r in?r???? to L?ui?i?n?’? minimum wage could send th? ?t?t? t? th? back of th? li?t. L??ing bu?in????? â€" ?nd j?b? â€" ??rt?inl? will n?t lift people ?b?v? th? ??v?rt? lin?.R?i?ing the minimum w?g? will h?v? a marginal ?ff??t on th? ???r. A???rding t? a  r???rt b? th? H?rit?g? F?und?ti?n, ?nl? 22 ??r??nt ?f minimum w?g? ??rn?r? live b?l?w th? ??v?rt? lin?.R?th?r, it i? m??tl? ?tud?nt? wh? ???u?? l?w paying j?b?.The Heritage F?und?ti?n’? r???rt f?und about 62 ??r??nt of minimum wagers are ?nr?ll?d in school during f?ll, wint?r ?nd spring.Furth?r, th? report noted about 1/3 ?f minimum wage ??rn? r? h?v? not fini?h?d high ??h??l, about 1/4 ?nl? h?v? th?ir high ??h??l degree ?nd ?b?ut 2/5 have taken ??ll?g? ?l?????, but n?t ??t gr?du?t?d (many in this ??t?g?r? ?r? college ?tud?nt? working ??rt-tim?).So whil? r?i?ing th? minimum w?g? m?? ?r m?? n?t lift ????l? above the ??v?rt? lin?, it m?? in?t??d set m?n? ?tud?nt? back b? ???ting them th? ????rtunit? t? g?in w?rk experience that could h?l? them ??rn high?r salaries after they ??m?l?t? their ?du??ti?n â€" ?x??ri?n?? th?t could ultim?t?l? k??? th?m ?b?v? th? poverty line later in lif?.Th? b?n?fit? ?f in?r???ing the minimum w?g? m?? be neutralized b? a high?r ???t ?f living t??.Th? IHS Gl?b?l In?ight macroeconomic m?d?l â€" ?ft?n used b? government ?g?n?i??, financial in?tituti?n? and m?nuf??tur?r? wh?n m?king economic forecasts â€" ?h?w? increases in l?b?ur ???t? are ?ft?n ?????d onto ??n?um?r?.For ?x?m?l?, f?ll?wing a 14 ??r??nt increase to the minimum wage in C?lif?rni?, Chipotle raised their prices by 14 ??r??nt.Wh? does th i? h????n?Back t? the r?t?il ?t?r? ?wn?r scenario fr?m earlier.If ??u do n?t w?nt t? l?? off ?n? ?f ??ur employees ?r ?ut th?ir hours, ?nd you ??n’t m?k? ?ub?t?nti?l cuts t? other ?x??n???, ??u would have to bring in an additional $5,200-$6,000 a ???r.S?, ??ur ?ri??? would have t? in?r????.At b??t f?r l?w-w?g? w?rk?r?, th?? keep th?ir jobs, but ??? a proportionate high?r cost ?f living.Has ?n?thing r??ll? b??n ????m?li?h?d?And ?t w?r?t for them, if bu?in????? throughout th? ?t?t? ?r? t??ing ?r?und with raising prices ?nd cutting l?b?ur ?x??n???, some low-wage w?rk?r? ??uld b? put in ?n even w?r?? ?itu?ti?n.These w?rk?r? ??uld l??? th?ir j?b?, ?nd th?n f??? a higher ???t ?f living with in?r????? in ??n?um?r prices.Employers h?v? a b?tt?r und?r?t?nding of employee ?r?du?tivit? than th? g?v?rnm?nt.J?b? ?r? diff?r?nt.There are entry-level j?b? th?t r??uir? ?tt?nti?n to d?t?il ?r a l?t of paper work, ?nd ?th?r? th?t ?ff?r more free tim? ?nd fl?xibilit?.Sin?? diff?r?nt jobs require diff erent amounts ?f ?du??ti?n, ?kill, experience, ??n??ntr?ti?n, physical energy ?nd ??mmitm?nt, ?m?l???r? should be th? ones th?t d?t?rmin? h?w t? properly ??m??n??t? ?m?l?????.Investments are m?d? b???d on v?lu? produced.A bu?in??? ?wn?r i? in?lin?d t? ??? ?n ?m?l???? f?r th? v?lu? they will bring t? th? ??m??n?.Wh?n a bu?in??? pays workers b?l?w th?ir value, th?? can leave f?r b?tt?r opportunities ?nd the bu?in??? i? h?rm?d b? l??ing ?r?du?tiv? workers.C?nv?r??l?, if a bu?in??? pays w?rk?r? ?b?v? th?ir v?lu?, th? bu?in??? m?? l??? money.Whil? n?t perfect, this market i? th? b??t m??h?ni?m f?r w?g?? to b? f?irl? d?t?rmin?d.While ??m? ?t?t?? does h?v? ??ri?u? ?r?bl?m? arising from widespread ??v?rt?, r?i?ing th? minimum w?g? i? n?t a qui?k ?nd harmless fix.R?i?ing th? minimum w?g? risks ?utting individu?l?, bu?in????? ?nd th? ?ntir? state ???n?m? in a w?r?? position t? ?dv?n?? a goal â€" h?l?ing l?w income h?u??h?ld? â€" th?t may n?t ?v?n b? accomplished.More jobs ?nd ????rtuniti?? fo r ?dv?n??m?nt are found in business-friendly ?nvir?nm?nt?.Here are a Few of the Bullet Points:L???ff?: If ?n ?m?l???r h?? a tight ??m??n??ti?n budg?t ?nd th? minimum wage i? r?i??d, it means they can n? l?ng?r ??m??n??t? the same numb?r of ?m?l????? at a higher rate ?nd mu?t m?k? l???ff? to r?m?in within budg?t. So, whil? ??m? ?m?l????? may b? m?king ?lightl? m?r? m?n??, ?th?r? will b? l?ft un?m?l???d.Pri?? in?r????: Em?l???r? might r?i?? ?ri??? ?f their product in ?rd?r to g?n?r?t? enough income t? ?u???rt th?ir more highl? ??id minimum wage ?m?l?????, whi?h ??uld ultim?t?l? create a ri??l? effect for ?th?r shops ?nd industries, r??ulting in a slightly high?r ???t ?f living, r??ulting in another ?u?h to raise minimum w?g? again.F?w?r Hirings: If bu?in??? mu?t ??? th?ir minimum w?g? employees m?r?, th?? ??nn?t afford to hir? as m?n? ?m?l?????. A???rding t? a F?d?r?l R???rv? B?nk of Chi??g? ?tud?, “10 ??r??nt in?r???? in th? minimum w?g? l?w?r? low ?kill employment by 2 t? 4 percen t ?nd t?t?l r??t?ur?nt ?m?l??m?nt by 1 t? 3 ??r??nt.” Or in?t??d ?f hiring f?w?r employees, th? company m?? start ?ut??ur?ing j?b? t? ?m?l????? in ??untri?? that ?r? willing t? w?rk f?r mu?h l??? th?n $10.10 ??r h?ur, r??ulting in fewer j?b? for Am?ri??n?.Competition Will Intensify: If minimum w?g? increases, ?v?rl? qu?lifi?d individuals will be v?ing f?r minimum w?g? ???iti?n?, pushing ??ung?r, inexperienced workers out ?f th? running and r?bbing th?m of th?ir ????rtunit? t? g?in experience ?nd kn?wl?dg? t? build a r??um? f?r themselves ?nd ?nt?r th? w?rkf?r??.A??li?d In??n?i?t?ntl?: Many ?t?t?? h?v? their ?wn ??t minimum wages, whi?h are currently ?b?v? $7.25 ??r h?ur ?lr??d?. As ?f January 1, 2014, 21 ?t?t?? (?nd D.C.) have minimum w?g?? above $7.15 per h?ur (Washington b?ing the highest at $9.32 ??r h?ur), ?? the amount the national minimum wage is ??t at v?ri?? in ?ignifi??n?? fr?m ?t?t? t? state.Un?m?l??m?nt: If labour markets ?r? ??m??titiv?, a minimum w?g? ??uld ??u?? un?m ?l??m?nt b???u?? firms will d?m?nd less l?b?ur, and higher w?g?? may encourage m?r? w?rk?r? t? supply their labour.Firm? m?? b???m? uncompetitive: In ??m? cases, a higher minimum w?g? ??uld ?u?h up costs ??u?ing a firm t? go out of business b???u?? th?? m?? n?t b? able t? ?ff?rd w?g? ???t?. This might b? a ??rti?ul?r problem if the firm is competing in a gl?b?l m?rk?t ?nd high?r wage ???t? make th?m uncompetitive ??m??r?d t? l?w-w?g? cost ??untri??. F?r ?x?m?l?, a high?r minimum w?g? m?? ?n??ur?g? firm? t? m?nuf??tur? ?l?th?? in Chin? ?r T?iw?n wh?r? l?b?ur i? cheaper than th? UK.Cost-push infl?ti?n: A minimum wage can ??u?? ???t-?u?h infl?ti?n. Thi? i? b???u?? firm? f??? an in?r???? in costs whi?h ?r? likely to be ?????d ?n to consumers. Thi? is ?v?n m?r? lik?l? if w?g? differentials ?r? maintained.Bl??k m?rk?t: A minimum w?g? m?? in?r???? the number ?f ????l? w?rking ?n th? bl??k market so firm? can ?v?id ???ing the legal minimum.Poorest don’t benefit: A limit?ti?n ?f th? minimu m w?g? i? that it d???n’t in?r???? the incomes ?f th? l?w??t income gr?u??. This is b???u?? the ???r??t h?v? t? rely on b?n?fit? ?nd are th?r?f?r? n?t affected b? minimum w?g??.Limited impact on relative ??v?rt?: Many wh? benefit from th? minimum w?g? ?r? ????nd in??m? ??rn?r?, and th?r?f?r? th? h?u??h?ld i? unlikely t? b? below th? ??v?rt? line. A household with a ?ingl? income ??rn?r ju?t ?b?v? th? minimum w?g? i? likely t? b? r?l?tiv?l? poorer. But they will n?t b?n?fit fr?m the minimum w?g?.Incentive for automation: An in?r???? t? th? minimum w?g? would provide ?n incentive for ?m?l???r? to inv??t in ?ut?m?t?d ?r???????, technology, and machinery t? increase productivity r?th?r than hum?n resources.The competition f?r minimum wage j?b? will int?n?if?: A? a result, t??n?g?r? and younger w?rk?r? will l??? ?ut t? more experienced ??ndid?t??, thereby r?bbing th?m ?f ????rtuniti?? t? gain ?x??ri?n?? ?nd ?nt?r th? workforce.MINIMUM W?G? F?R ??M? ST?T?SEv?n though th? federal minimum wage hasnt in?r????d ?in?? 2009, th? majority of states h?v? a higher minimum wage than required b? th? federal g?v?rnm?nt.In addition, some l???l muni?i??liti?? h?v? initi?t?d minimum w?g? increases f?r th?ir location.For instance, San Fr?n?i???? minimum w?g? is high?r th?n th? state ?f C?lif?rni?? minimum wage. And, C?lif?rni?? minimum wage i? high?r th?n th? f?d?r?l minimum wage.In 2017, th? minimum w?g? increased in 21 ?t?t?? ?nd the Di?tri?t ?f Columbia. In 2018, the high??t ?t?t? minimum wage w?? $11.50/hour, in Washington ?t?t?, followed by M?????hu??tt? ?nd C?lif?rni? ?t $11/h?ur.M?n? ?iti?? also increased th? minimum w?g? rate ?? well â€" ?? ?f J?n. 1, 2018, it? $14/hour in S??ttl?, W??hingt?n (or $11.50/hour, plus at least $2.50/h?ur in tips and b?n?fit?) ?nd $15/h?ur in Sunnyvale, C?lif?rni?, f?r instance.C?N?LU?I?NStudi?? fr?m b?th ?id?? of th? debate m?k? it relatively clear that in?r???ing minimum w?g? will n?t m?k? a ?ignifi??nt im???t on th? ??v?rt? level.A???rding t? th? C?ngr???i?n?l Budg?t Office r???rt ?n Th? Eff??t? of a Minimum-W?g? In?r???? on Em?l??m?nt ?nd Family Income, in?r???ing th? minimum w?g? fr?m $7.25 t? $10.10 ??r hour will ?nl? r?du?? the number of ????l? in ??v?rt? by 900,000, a r?l?tiv?l? f?w ??rti?n ?f th? 16.5 million people th?t would supposedly b?n?fit from th? r?i??.This i? because ?f th? numb?r of minimum wage workers, r?l?tiv?l? f?w ?r? ??tu?ll? in poverty, ?nd of f?mili?? wh? liv? in poverty, ?nl? about 7 ??r??nt h?v? a full-tim? w?rk?r in th? f?mil? meaning poverty i? n?t because ????l? are n?t b?ing ??id ?n?ugh, it i? because they ?r? n?t working or not w?rking enough.S?m? ?ugg??t th?t ?r??ting m?r? j?b? f?r ????l? wh? n??d th?m rather than raising earnings f?r people wh? ?lr??d? have th?m is a b?tt?r ??luti?n f?r r?du?ing th? n?ti?n?l ??v?rt? r?t?.Of ??ur??, thi? does n?t mean th?t r?i?ing th? minimum w?g? wouldn’t b? gr??tl? b?n?fi?i?l t? th??? earning it, but ultimately it d??? n?t h?l? those wh? do n?t ?lr? ?d? h?v? jobs t? begin with.Wh?t d? ??u think?