How will increasing the minimum wage hurt hurt businesses and cause job loss?

Question

enlish 2 project

Answer 1

By making labor more expensive, bosses will buy machines to do the work. Or send it abroad. Or find it unprofitable and not do it at all. Maybe go out of business.

The job of government is to find a happy medium, where not too many jobs are lost, and greedy bosses who pay their workers less than the cost of living have to pay a fair wage.

There is a philosophical issue about whether it's better to have a larger number of unemployed but still having most unskilled workers better off.

Of course there is the issue of bosses who don't obey the law, especially with respect to "illegal aliens" who can't complain because they'd be deported. But that's a separate issue.

Answer 2

For small business it can force them to close. Sometimes the profit margin is so small that having to pay employees more money can break the margin. Sad, but true. The prices of the goods are raised, and the customers stop coming in. Usually this is only a temporary thing, but if it lasts to long, then due to no sales, the business must close. If I pay the guys on the lowest rung of the ladder more money, then I also have raise the guys on the other rungs as well. In short, raising the minimum wage raises prices to the consumer, and raises operating cost to the employer.

Answer 3

By increasing minimum wage you give the business owner a larger overhead(cost more to run the business and pay people). If the business can not support the higher wage, then the business must cut cost. One of those ways is to cut down on the employment or the staff. Now you have people with out jobs.

Answer 4

Increasing minimum wage will mean that the expenditures for employees will increase causing a loss in profit margin. Many corporations require that managers maintain a certain level of margin. In order to keep that profit of margin with increased minimum wage the manager will have to cut jobs.

Answer 5

There needs to be a middle line boarder for family owned business and fortune 500 companys different levels of job have different minimum wage.

Answer 6

Nobody thinks so unless he is a 'shylock' who runs the business with ulterior motive.Human is creating wealth it is the job of the person to give enough without asking to enhance is object of doing the business,to make profit,without denying other who are helping to reach the goal if he has set which is timeless.Human is a capital with infinite value.WAGE SHOULD BE MUTUALLY ON AGREED TERM

Answer 7

there is a few exceptionally good anectodal data that by way of fact of smoking bans, human beings who smoke stay domicile and drink extremely than going to bars. This has delivered approximately short-term downturns for small agencies who've been tormented by using the ban. And your arguement that people who're by the form regarding the eating place/bar marketplace would be affected is probably genuine (in spite of if the outcomes are lots extra attenuated.) the concern is, although, balancing those concerns with the wellbeing concerns of folk in public places. Waitstaff, who haven't any selection yet to artwork in a smoky bar, finally end up with lung maximum cancers, in spite of in the event that they don't seem to be human beings who smoke. different buyers are uncovered to smoke and function unfavourable wellbeing effects. The societal cost of exposure to secondhand smoke nears the financial loss to bar vendors. subsequently, overall, it is probably worth it. And the downturn in company would be at last offeset by using fewer human beings who smoke and a sparkling style of folk who refused to bypass to bars by way of fact they have been too smokey.

Answer 8

Increase cost base. Decrease profitability. Reason to look for alternatives such as relocating means of production or replacing with robot, etc. ...

Answer 9

http://en.wikipedia.org/wiki/Minimum_wage

if you can't use wikipedia as a source, make sure you follow their source links.

and here's one more specific to your question:

http://www.raiseminwage.org/

Answer 10

thats what they claim every time this issue comes up