Question

Why minimum wage should not be raised?

This question may sound weird but I need to make a list of reasons why the minimum wage shouldn’t be raised. What are some reasons to keep it the same? Thanks!

Answer 1

Here are 6 reasons why raising the minimum wage is a bad idea:

1. Current employees who get paid the minimum wage would be obligated to do more work. To keep labor costs low, these employees would have to take on additional duties and responsibilities to make up the difference in hours available.
2. Since more people would be willing to work for more pay, the current workers would be likely replaced by higher quality workers or automated systems. Instead of earning higher wages, the current minimum wage workers could end up unemployed.
3. Minimum wage causes employment to migrate overseas. The latest example of this is American Samoa, a United States Territory covered by federal law. American Samoa had to incrementally increase their minimum wage commencing in 2007. Their unemployment rate rose from 6% to 29%, and while the average earnings increased by 27%, prices increased by 34%, so life became more difficult for the entire island. Eventually, President Obama had to freeze the increases, leaving the minimum wage at $5.59 per hour until 2015.
4. While the minimum wage can lead to price increases, the price increase is not equally allocated. For instance, if the price of a box of Macaroni & Cheese went up by $0.01 to cover the increased wages of Walmart workers, how much of that penny would go to the manufacturers, farmers, cheese makers, and everyone else who contributed to that Macaroni & Cheese? Is it fair that the entire penny goes to the person who works at the store?
5. If you think the worker at McDonalds should be making more money, you could give them some additional money when you pay for your meal. Or you could start your own restaurant chain where all the employees make a living wage. It’s unnecessary to bring the government into this issue when the people can change it themselves.
6. Working for less than minimum wage is a choice. The government shouldn’t be involved in a transaction where both parties have agreed to a wage. Slavery and fraud are both already illegal. Workers who have chosen to work for less than minimum wage can’t be exploited if they have made the choice themselves. You aren’t obligated to work for that wage, but stay out of other people’s affairs.

Reference:

http://reason.com/archives/2014/03/03/9-reasons-why-raising-the-minimum-wage-i

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