1- Reduction in poverty/ better living standards for those who are in the lowest income groups but manage to keep employment.
2- Argument that increased disposable income could lead to more consumer spending.
3- Increased incentive to work.
1- May actually end up hurting those in the lowest paid jobs due to firms costs increasing and subsequent job cuts.
2- Inflationary- prices rise meaning real incomes fall (negatively impacting living standards).
3- Less internationally competitive and FDI may decrease.
Depends on elasticities of Labour Demand and Supply.
Depends on the size of the rise. It also only affects those whose equilibrium wage rate is below the NMW.
Effects will depend on relative wage rates in other countries.
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If the minimum wage increases this means people will be able to pay for all the necessities in life. The increase means the few extra pennies they earn will lead to something greater in life. Every deserves to provide for their families and make sure they have food on the table and shelter over their head.
Good for economic recovery: To get the economy back on track, spending power has to be in the hands of those who actually spend in the real economy. That means regular people, not the super-wealthy who tend to hoard wealth or invest in financial products. The minimum wage story is not just a story about income inequality, but rather it’s about an elite that has hijacked the economic system and made it work less productively than before while redistributing more of what is working to themselves.
Helps people get out of debt: As our economy has become increasingly directed toward Wall Street and the so-called FIRE (finance, insurance, real estate) sectors, more wealth has migrated to the top 1 percent. On top of that, real wages have increasingly lagged behind the growth in productivity. It is also clear that hours worked and persons employed in the “productive” sector have been in decline over the last few decades.
Its better than lower wage. As money for other essentials goes up, don't you think that the money that your erring for your hard work should go up as well. Don't get me wrong there are some negatives of this but it out ways the negatives in this argument. The money will not only help our struggling Americans but it will go to better use then having major cooperation and the government having most of the money. Share the wealth!
Higher minimum wage helps depressed economies and is an instrument often used by ruling parties worldwide. The employees will have more money to spend on food, electrical equipments, home improvements and even travel. Others may decide to enroll in further education programs. Thus every branch of the economy: trade, retailers, etc., feels the positives of higher disposable income.
There is a real argument against a higher minimum wage, and even a minimum wage at all. As a society though, we have to be willing to help out the folks who need it most. The workers at the bottom of the food chain who receive a pay increase will spend their funds on items that help grow the economy, and that can only benefit all of us.
At the moment, it is cheaper for a company to employ a minimum wage worker than it is for it to fully automate. That is because the minimum wage is set at 7.25 an hour. Some socialists and left wing extremists want to raise it to 10, 12, or 15 dollars an hour. As soon as that happens, companies decide to automate because they know that in the long run, robots are cheaper. Robots also work 160 hours a week as opposed to the measly 40 hours that humans do. And Robots don't strike or complain. Companies already want to automate, demanding an increase in minimum wage simply puts the nail in the coffin.
If everyone received a higher minimum wage, there would be an increase in prices for goods. Everyone is being given more money, and to compensate for this money being given away, the government has to increase prices to increase national revenue.
The second reason a higher minimum wage is not a good thing is that the national inflation rate will increase. The higher the inflation rates, the less money is worth, and that coupled with higher prices leads to economic disaster.
A third and final reason that a rise in minimum wag is bad is that there are people in the military, fire department, and police department, people that risk their lives for the greater good every day and some that end up paying the ultimate price, giving the ultimate sacrifice to protect you, me and our freedom, will be making LESS than a person would working in a McDonalds somewhere in Memphis, TN or Dallas TX, or Cleveland OH. If you are willing to give your life for our country and its people, and are working 6-8 month-long deployment, I think you should earn more money than someone with no education standing behind a counter at a fast-food joint for about 6 hours a day, 3 or 4 days a week.
On the surface I want to say yes we should raise the minimum wage. That would mean that more people will get paid a greater amount of money. The results of people paying more is quite easy to see there will be more money to pay down bills, to buy things not only needed, but things which are wanted. That is the argument for raising wages and I understand that and even support it to some degree. However, on a fundamental level I believe minimum wages are harmful. Every job has permission to pay someone a certain amount. We have seen in the United States where that leads. The pay rate for retail across the nation is minimum wage in most stores and in some places even fast food restaurants earn more. I believe in my fellow man that we may become educated in working smart like Sweden. They have a higher cost of living, no minimum wage laws, yet their people earn more doing the same jobs we do here. They invest in themselves and their employees are more productive for it. Here in the United States certain businesses have taken on this model as well. It is always easy to tell which grocery stores pay higher than minimum wage. The prices may be a little higher, yet the service is is as well. This means as a society we have to chose to shop at places which pays a living wage, which is never minimum wage.
No, a higher minimum wage is not a good thing. Every time that the minimum wage increase, the cost of goods increase with it. This puts no extra money in the pocket of minimum wage workers, and actually hurts the people who are not at minimum wage as their income typically does not increase to compensate for the increase in minimum wage.