TheLowest Wage
Nameof Student
TheLowest Wage
Theminimum wage should remain at $7.25 as is the current level acrossnumerous states. There have been numerous attempts to push for theraise of the minimum wage bill with a belief that the move will aidin improving the living standards of the poor and majority of themiddle-class citizens. My argument against the rise of the minimumwage bill is based on some disadvantages that may arise due to anincrement of the minimum wage bill.
First,a rise in the minimum wage may hurt the middle class due to aresultant inflation of commodity prices. An increase in the minimumwage would mean that the employers would have to increase payments tothe employees. With such a move, the employer would be forced to passthe extra costs to the consumers of their products hence inflation.
Second,an increment in the minimum wage would be a threat to employment.Such an increase would lead to a rise in the payroll costs for theemployers thus reducing or affecting their income. The consequence ofthis would be a reduction in employment, a decrease in hours ofoperation and even a reduction in the number of employees throughlayoffs. In fact, a study by the Congressional Budget Office showsthat the proposed raise in the federal minimum wage to $10.10 couldconsequently lead to one million workers losing their jobs (Tejvan,2015). The move would, therefore, burden the nation with high numbersof unemployed individuals hence my stand.
Thirdly,most of the minimum wage earners are individual who depend on themoney as a supplement. Most of these individuals are teenagers orstudents who work part time. According to Pew Research Center, 50.4%of the individuals making the minimum wage are aged between 16 and 24and a majority of them are part-time workers (Tejvan, 2015).
Fromthe reasons explained and much more complicated economic reasons, itwould be unfavorable to increase the minimum wage. Its increase,though it might be viewed as esteeming the low-income earners, hasmore adverse effects on the general population than the benefits.
References
Tejvan.(2015). Economics Articles & eBooks. Retrieved May 12, 2016, fromhttp://www.economicshelp.org/