Minimum wage is a very controversial economic and political issue. Though it might be well-intentioned, it rarely produces the lasting benefits for which many of its proponents hope. The economistReed Garfield (Senior Economist) said that the voices demanding a raise in minimum wage are getting ever louder, arguing that the current wage level does not give a satisfactory motivation for work. Inaddition, they argue that an increase in the minimum wage will have only a very minor impact on jobs. However, these arguments are not grounded in fact. Raising the minimum wage hurts the poor; ittakes away jobs, keeps people on welfare, and leads to Inflation. Those who demand for a raise should be clear on the consequence of higher minimum wages.
Raising the minimum wage encourages people todepend of workforce, what result in an excess of applicants enter into competition for jobs. Moreover, business companies usually hire the more-skilled applicants. For example, “with a minimum wage inplace adults who depend on their paychecks to pay the bills and survive can keep their jobs instead of competing with less experienced workers or teens who would otherwise be willing to work the samejobs for less money” (The advantages…), which would result in many people become thieves, criminals to meet the needs of their families. Although, as the work rate go low, those workers who withexperience, that deserve a decent wage, will lose their jobs only because someone else does it for less money.
Higher minimum wages make the transition from welfare to the workforce more difficult. As aresult, the ones that keep on welfare the longest are mothers. Mothers on welfare in states that raised their minimum wage remained on welfare 44 percent longer than mothers on welfare in states whereit was not raised (Dr. Peter Brandon).The reason for this result is that raising the minimum wage induces some people to enter the labor market who would not apply if they don’t have higher level in...
Leer documento completo
Regístrate para leer el documento completo.