2006-06-28 13:10:52 · 11 answers · asked by lily_peacelover 1 in Business & Finance ➔ Careers & Employment
It could put some small companies out of business....?
2006-06-28 13:12:30 · answer #1 · answered by Twinkle 4 · 0⤊ 0⤋
If the minimum wage was raised again the cost of all goods and services would go up and those who earn more than minimum would not get a raise. The only people I know on minimum wage are teenagers and i really dont think they need to make more money. Raising the minimum wage may look good but it will hurt small businesses and those of us who are eeking by on more than minimum. It might sound good at first but if you really think of the ramifications accross the board its not worth it. i was thrilled with minimum wage as a teen, if you have a good work history from then on you shouldnt have a problem landing a job with higher pay.
2006-06-28 16:08:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Well...for one thing....minimum wage jobs are pretty much starter jobs....menial labor...really simple stuff that needs to be done but requires no skill.
I employ around 20 people...some are skilled workers and some are just helpers....if they raise the minimum wage for the unskilled workers...I have to raise the wages of the skilled workers.
If they raise the minimum wage up to high...like I've heard some politicians saying that the minimum wage should be a "living wage" I would have to get rid of about 5 people who are still in school just working to save up enough money to buy a car...or a play station or stuff.
If you could live on a minimum wage doing brainless mindless work...who would want to go to school to get a good job?
2006-06-28 13:16:12 · answer #3 · answered by werk2much2000 4 · 0⤊ 0⤋
As explained by macroeconomics, if the minimum wage is increased, then it increases the "cost" of low-skilled labor for companies. Companies would then be less inclined to hire more workers due to the rise in cost. This would eventually lead to hire unemployment rates as less people are being hired, and some currently employed people will lose their jobs as employers attempt to cut costs. The increase in unemployment will lead to higher unemployment benefits. This reinforces the increasing unemployment rate as more people choose to remain unemployed and receive higher benefits. If the minimum wage is raised to the point that it is an attempt to decrease unemployment, the trade-off would be higher inflation. It's somewhat of a slippery slope, in my opinion.
Of course, this is strictly a textbook answer. Empirical evidence, I believe, supports it in the long-run. Unfortunately, I don't have that information at hand right now. Also, my explanation may not be totally accurate as I'm going from memory.
Also, I realize that the textbook answer is probably not what you (or anyone else who asks this question) is looking for but it's a start.
Hope it helps!
2006-06-28 13:21:44 · answer #4 · answered by frenchiegurl2000 1 · 0⤊ 0⤋
Absolutely none! They need to raise it enough so someone could actually live on minimum wage. Right now, it's still a joke. I don't think anyone in Congress should get a raise until the minimum is raised!!
2006-06-28 13:14:18 · answer #5 · answered by Andrea F 4 · 0⤊ 0⤋
I wish that the minimum wage could be higher. The people who work in minimum wage jobs, usually work harder than people in higher paying jobs.
However, if the businesses that pay minimum wage had to pay higher wages, all the smaller service businesses would be out of business.
People forget that restaurants for example have to pay rent or mortgage, heat, hydro, gas for cooking and heating water, hydro for coolers, freezers and compressors as well as airconditioner, lights, music etc. They also have compensation premiums, insurance, cost of supplies, eat the cost of losses due to theft and employees who don't care about waste because it is not their loss, the cost of employees feeding their friends for nothing, cost of equipment, cleaning, just to mention a few costs.
If they try to put up their prices by even a few cents, they lose their clientelle.
These are just a few things business owners have to pay. Doesn't leave much left for them to live on.
2006-06-28 13:44:13 · answer #6 · answered by nellie 3 · 0⤊ 0⤋
The prices of goods will go up. The prices will go up at fast food places and other similar places that employ minimum wage labor.
2006-06-28 13:13:36 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Minimum wage should be rolled back to 3.50 an hour so businesses could higher more workers.
2006-06-28 13:51:33 · answer #8 · answered by Anonymous · 0⤊ 0⤋
The less the poor are exploited (overall w/in the economy) the less money your Dad will have to give you.
2006-06-28 13:14:49 · answer #9 · answered by Anonymous · 0⤊ 0⤋
If your the owner of a business. That would suck.
2006-06-28 13:15:05 · answer #10 · answered by E3_E3 3 · 0⤊ 0⤋