Why are economists against the raising of minimum wages?

Answer 1

They believe it will hurt small businesses but in reality it would boost the economy. When the wealthy get tax breaks the money does not go back into the economy because by definition the wealthy already spend as much as they want to. When the poor get a pay raise, every cent goes back into the economy.

Answer 2

The one biggest expense of every business is the payroll. If the minimum wage is raised, a lot of businesses (both big and small) will have to shut their doors because they simply won't be able to afford to pay their workers anymore. Other businesses will be forced to lay off workers, and the end result is an increase in unemployment. An increase in unemployment is bad for the economy because taxes go up and consumer spending goes down, and those two factors are a recipe for recession. Not good.

Answer 3

When you raise the minimum wage ,all prices must go up to cover the cost of the raise.It is self defeating.At the same time it gives everyone making an amount above the minimum a pay decrease due to the rise in prices.

Answer 4

If the minimum wage is raised, the prices in the stores, or everywhere where minimum wage is paid, will go up so the store can meet it's payroll.

Answer 5

Increasing the minimum wage will raise the cost of business, thus contributing to the further outsourcing. The profits of the employers will shrink, which may influence them to relocate the business to places where labor costs are more advantageous.

Answer 6

Increasing the minimum wage hurts the economy in general.
I Corinthians 13;8a, Love never fails!!!!!

Answer 7

because economists know that the best way is to let the market regulate wages. it's one of the very core principles in a capitalist economy.

Answer 8

good question, i would like to know also