The essay will discuss the higher minimum wage trade-off and minimum wage impact on the economy; notably, many advocates for increasing the minimum wage claim that it would improve the economy and create jobs. Their argument goes against the law of demand, whereby an increase in the cost of a product leads to decreased demand. Primarily, they argue that works earning more money will spend money benefiting employers. However, the employed are the real winners as the unemployed will find it hard to find a job. The article will highlight the higher minimum wage trade-off and minimum wage impact on the economy and the unemployed.
higher minimum wage trade-off and minimum wage impact
MINIMUM WAGE IMPACT AND THE UNEMPLOYMENT RATE
The minimum wage impact on the economy is immense, especially when pay gets increased dramatically. Mainly, the minimum wage set by the federal government helps in providing a compensation increase. However, the rate is different from the inflation rate that leads to workers getting left behind economically. A lack of a wage floor would allow employers to continue to pay less and destroy the consumers’ purchasing power. Thus, the minimum wage helps to mitigate the power imbalance between low-wage workers and their employers. Also, the essay will discuss the higher minimum wage trade-off and the minimum-wage impact on economies and low-wage workers.
minimum Wage Impact and the unemployment rate
MINIMUM WAGE PROBLEMS AND HIGHER MINIMUM WAGE TRADE-OFF
The higher minimum wage trade-off leads to several minimum wage problems. Mainly, the conservatives view the minimum wage as an attack on the free markets. The social progressives, however, argue that the minimum wage drives the economy. From both perspectives, there is a problem that exists with the minimum wage. First, increased labor costs face employers, especially in the foodservice industry. An increase in the minimum wage would force employees to seek compensation leading to increased rates by employers. Secondly, minimum wage drives unemployment rates as wages rising will lead to employers to have a small staff. Lastly, the essay will help in understanding the higher minimum wage trade-off and the minimum wage impact.
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