A Higher Minimum Wage May Help Workers

President Franklin Roosevelt asked for "fair daily payment for fair work" and in 1938 the Fair Labor Standards Law stipulated the minimum wage (Grossman). Overtime work to raise minimum wage to cope with inflation (BLS 14). However, increasing the overall economic impact of wages will once again be a difficult and widespread problem. The controversy over raising the minimum wage seems to come from a contradictory economic view. Although raising the minimum wage is for good intentions, the critics believe that a higher minimum wage will hurt those who actually tried to help.

However, if the minimum wage is high, there is a possibility of adverse effects. Several SMEs hire minimum wage workers and have low profit margins. These companies may be forced to hire fewer workers, as the minimum wage increases as the operating costs increase and companies may not be able to expand their business. In addition, they may be forced to lay off employees to compensate for the increase in operating costs due to the rise in minimum wages. Likewise, as the minimum wage increases, some small and medium-sized enterprises become unprofitable and may be obliged to close the business. All of these conceivable impacts could adversely affect the employment situation of small and medium-sized enterprises and minimum wage workers.

Whenever a city or state discusses raising a minimum wage, both corporate and conservative legislators take a series of three threats. They believe that higher minimum wages will hinder employment opportunities. They insist that wages suffer companies. They insist that prices will soar. (Here is an EPI survey before raising wages in Seattle, most companies predict all three.) This is the 3 major discussions on wage hikes and the Seattle Minimum Wage Research Group is all three I clearly disputed. threat

Advocates with a low minimum wage say that the current federal minimum wage is $ 7.25 per hour, which is too low for everyone; minimum wages are useful for job creation and economic development. Most Americans, including one of the main reasons for the wage gap between low-income workers and middle-income workers, and the majority of people claiming to be conservative, support the increase in the minimum wage. Opponents state that many companies will not be able to pay more salaries and will be forced to reduce the layoff, dismissal, or employment of workers. It is more difficult; raising the minimum wage at the federal level does not take into account changes in community living expenses, especially raising the minimum wage may harm the low income community. Read more