Why Not To Increase Minimum Wage

Why Not To Increase Minimum Wage

                The Government uses various ways of trying to regulate spending in the economy. One of the ways they do this is through Minimum Wage which is the standard payment an average worker is paid. The question is usually whether or not it is a good idea to increase that standard and this article states why it is not good to increase Minimum Wage.

                The first reason that an increase in Minimum Wage is not good for regulation is because of the amount of people wanting to work due to an increase in payment. With the increase in payment, employers won’t have as much money to put towards multiple workers so would instead look by the quality and experience of the workers and would therefore increase the unemployment rate. This doesn’t benefit the lower class at all, since they don’t always have the experience of that of the higher class.

                The second reason that an increase Minimum Wage is not good for regulation is because of cut in benefits. For example, if a worker with experience was able to get a job, the employer would need to cut certain services such as health insurance in order to pay the increase in minimum wage. This means they won’t get as good insurance in case something happens to them and this would damage things for the worker in the long run.

                The third reason that an increase in Minimum Wage is not good for regulation is because it leads to inflation. If the employer needs to hire more workers for the job, he would need to find other ways of cutting things down to reduce spending for himself as much as possible. This could lead to him increasing prices on the services he provides and would ultimately create a loophole because now that those employed now get paid more, they would also need to spend more on such services and due to the fact that lesser qualified will no longer be eligible for a job, they will be forced to pay even more for goods.

                

In conclusion, we see that increasing minimum wage is not a good idea. It may benefit for the time being, but it has a long term cost that could damage things dangerously for the economy and the unemployment rate. The Government can use many ways to regulate the economy, but increasing minimum wage is not the way to go.

Sources:

Ilyas, Zoobia. "Disadvantages to Raising Minimum Wage." eHow. http://www.ehow.com/list_6462281_disadvantages-raising-minimum-wage.html.