Doesn't raising the minimum wage actually hurt the people it's suppose to help?

Question

I know the government wants to mandate what businesses pay there employees, but if businesses have to pay more money for these employees won't they just hire less people or even eliminate some positions all together

Answer 1

You are correct in your assumptions. Businesses will not just absorb the additional cost of doing business contrary to what the supporters of these wage increases believe. The bigger problem though is this one. People have this belief that if you raise wages the standard of living will increase. The problem with this contention is that in order to pay increased wages businesses raise prices to cover the additional cost. What this does in effect is negate the surplus gained on the raise through increased costs. It is a vicious cycle, but some will never understand the dynamics in their overzealous desire to promote useless feelgood solutions which deny the reality of cause and effect. The only real path to success in life is the time tested one which is too gain education and experience in order to rise above the minimum wage lifestyle.

Answer 2

No, raising the minimum wage doesn't hurt the people it's supposed to help. If anything, it is an incentive to seek or remain employed. Everyone must maintain a standard of living. And by that, I mean paying the necessary bills for housing, food, etc.

What actually hurts businesses are the number of able bodied people who can work but won't. Those who want a handout from the government.

Business owners want reliable people who will work. They are willing to pay good money for that work. Even if the job is at McDonalds, it's still honest work for an honest wage.

Not everyone can work for the federal government, you know. But if they can work anywhere, they should work or not eat.

Answer 3

The minimum wage is the lowest wage a business can legally pay an employee. In theory, it should support one person at a very basic level, not a family. Usually, when an employee learns to do a job well and obtains job skills, he or she begins to make more than a minimum wage and within a couple of years where they would be at a level to support a family. It is increased to keep pace with inflation, although there are usually political influences on both sides that pressure it as well. Whether someone should go to college is dependent on what that person wants to do. If they want to be a carpenter or electrician, they can make a very good living without going to college. If they want to be an accountant, they have to go to college to learn accounting theory and principles.

Answer 4

Ultimately, yes, it will. It will also hurt you and me. Let's take a look at the little flower shop on the corner which has six employees. The owner can let one employee go, which means the other five work harder and longer hours. Or,... the owner can keep all six employees but raise the cost of his flower arrangements from $15.99 to $19. 99... which makes it more expensive for you and me when we need a quick arrangement. Raising the minimum wage will affect everyone, including the unsuspecting consumer.

Answer 5

That's a valid question. The new law has been in motion for a few months now. I haven't seen where it has helped. How can you live off, what is it; seven dollars and seventy five cents. With increasing cost of living, no one can make it unless they work four jobs, which is impossible. If you are being hired, their don't give you the full wage, until you have put in some time. This wage is ridiculous, and I feel sorry for those who have to work for that wage to make a living.

Answer 6

Of course it does. It causes business owners to hire less people. Naturally, it means that it hurts those just getting into the work force. Actually, the best way to raise wages is to lower the unemployment rate.

Answer 7

That's been the business position since the 1930's. Giving people a living wage doesn't seem to change the need for people in service positions. and these increases are barely enough to make living viable.

Answer 8

If they can even afford to stay in business. You need to add about 50% to the minimum wage as that is what employers actually pay because of taxes.

It's a scam and was a STUPID idea.

Answer 9

Many smaller businesses already pay their employees more than what the new minimum wage would be anyway.

Answer 10

it will also raise the cost to sell that item or service. plus minimum wage is not meant to support a family with....so anybody that argues that is wrong.