There are many differing opinions on whether it is good or bad.
Those who advocate for a higher minimum wage state that the current federal minimum wage of $7.25 per hour is too low for anyone to live on; that a higher minimum wage will help create jobs and grow the economy; that the declining value of the minimum wage is one of the primary causes of wage inequality between low- and middle-income workers; and that a majority of Americans, including a slim majority of self-described conservatives, support increasing the minimum wage.
Opponents say that many businesses cannot afford to pay their workers more, and will be forced to close, lay off workers, or reduce hiring; that increases have been shown to make it more difficult for low-skilled workers with little or no work experience to find jobs or become upwardly mobile; and that raising the minimum wage at the federal level does not take into account regional cost-of-living variations where raising the minimum wage could hurt low-income communities in particular.
Five Disadvantages of Minimum Wage increasing are
- Restrictions for companies
- Potential job losses
- Labor-intensive industries might lose competitiveness
- Outsourcing to foreign countries.
- Higher income is often correlated with higher prices.
Five Advantages of Minimum Wage increasing are:
- Higher wages for workers
- Higher employee satisfaction
- Motivation of workers might increase
- Lower risk of conflict
- Higher tax revenue
Know the pro’s and con’s of minimum wage in order to help employers develop proactive strategies that are engaged, stable and diverse, to emphasize inclusivity and respect for the contribution of every employee. Recipients should consult with counsel before taking any actions based on the information contained within this material.
For more information on minimum wage, contact: https://classycommunications.net/
Follow Classy Communications on Twitter at: https://twitter.com/ClassyPRLV