What are the downfalls to raising the minimum wage?

Answer 1

The biggest down fall is it can raise unemployment. Say you own a business and have 5 workers and pay them $5.00 an hour. Now say the government comes in and you now have to pay them $7.00 an hour. Before you were paying your workers a total of $25 an hour. Now with the raise you have to pay them $35 an hour. Some business can not handle the increase as they are on tight budgets. So in return they let go a person to keep their cost low, so they can compete with the foreign goods.
So now if you are a tax payer, more of your money is going to help unemployed and this can take away from other programs the government has set up such as building our infrastructure.

Answer 2

None of the arguments made here add up. If there are that many people that DON'T make the minimum wage then who cares. If there are so many out that make minimum wage that will hurt the economy then maybe it IS time to rethink what a minimum LIVING wage constitutes. By the way it is ironic that the tax cuts imposed by the bush regime have helped the rich, so in essence the rich got their min wage increase so why cant they pay a few extra cents for a friggin cheeseburger for crying out loud and let someone else have some extra change in their pockets too.

Answer 3

There are no downfalls. Everytime the minimum wage has been raised the economy has improved. As for losing jobs, look at he states that have a minimum wage higher then the federal wage. their job growth is higher then states that are at the federal level.

Answer 4

The downfalls of raising minimum wages will be an DECREASE in the number of jobs that will be available because the employers will not be able to afford to hire any new workers. Many employers will just choose to hire people for even LESS money by paying them cash, under the table, when they need extra help. It may look good on paper, but in the end, the workers who already have jobs, won't be doing any better because their salaries will no longer be subject to receiving a raise in pay.

Answer 5

Like some other people said, unempolyment is a big consequence. Another one is that raising the minimum wage will decrease the number of businesses -- some will go out of business, some will avoid the state, and some will move away. It will also increase inflation, rather than fight it, because the companies will raise their prices and it will all come out even again in the end. In my opinion, the costs far outweigh the benefits here.

Answer 6

There is no downfall. Companies will use the wage increase as an excuse to raise their prices on everything but they will raise prices anyway.

Answer 7

Wally World, and Mc D's, might lose a buck. Doesn't that make you sad? I'd like to see any of you people live on minimum wage for 2 weeks. You'd be whining like a little b*tch.

Answer 8

This doesn't help the inflation rate, at all. Besides, illegal aliens and teenagers, who else really works for minimum wage? I see too much attention put on this, but it's a feel good policy the liberals need to show their constituents they are actually doing something.

What I see as ironic is Nancy Pelosi who employs a lot of people in California, and carries the banner for produce workers, yet she employs no union employees, in her own enterprises.

Answer 9

If they raise it alot at one time,then everything will go up in price and the raise won't mean a thing!

Answer 10

According to the artcle Minimum Wages written by Linda Gorman if minimum wage is increased then employers find it more expensive to hire workers. If employers find it more expensive to hire workers they will hire fewer workers. If employers hire fewer workers, unemployment is increased.