Should Minimum wage be increased?
Is $8.05 per hour enough..
The following information will be explaining the pros and cons of increasing Minimum wage and most importantly understanding why Minimum wage should be increased.
What is Minimum wage?
Minimum wage is the lowest wage permitted by law or by a special agreement (such as one with a labor union).
Why should Minimum wage be increased?
Minimum wage should be increased because dealing with the economy we have today $8 isn't enough.
- Economic Stimulus: Raising the minimum wage means minimum wage workers have more money to expend which means more money ripples throughout the economy as minimum wage employees are able to spend more.
- More opportunity for jobs: If these minimum wage employees are spending more, then businesses are earning more and need to hire more employees to keep up with the increased sales from the minimum wage employees who are buying more.
- Decreased Turnover Rate: Employees who are making a higher minimum wage feel more comfortable and satisfied in their minimum wage jobs meaning they are less likely to quit. This means there would be a lower turnover rate, which results in fewer expenses to hire and train new employees.
- Inflation: The federal minimum wage needs to be raised in order to account for inflation, which raises every year and the minimum wage has only been risen three times in the past three decades.
- Layoffs: If an employer has a tight compensation budget and the minimum wage is raised, it means they can no longer compensate the same number of employees at a higher rate and must make layoffs to remain within budget. So, while some employees may be making slightly more money, others will be left unemployed.
- Price increase: Employers might raise prices of their product in order to generate enough income to support their more highly paid minimum wage employees, which could ultimately create a ripple effect for other shops and industries, resulting in a slightly higher cost of living, resulting in another push to raise minimum wage again.
- Fewer Hiring: If business must pay their minimum wage employees more, they cannot afford to hire as many employees.
- Competition Will Intensify: If minimum wage increases, overly qualified individuals will be vying for minimum wage positions, pushing younger, inexperienced workers out of the running and robbing them of their opportunity to gain experience and knowledge to build a resume for themselves and enter the workforce.
MY PERSONAL THOUGHTS..
I believe that minimum wage should be at least $10.05 . I think that trying to push for $15 is too much and would lead to not even considering to boost the minimum wage.
SO WHAT DO YOU THINK?
Is $8.05 per hour enough?