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Why Minimum Wage Should not be Increased and Better Solutions Found Essay

The issue of minimum wage in the USA has been a critical one even to the point of being one for the most important debates in the US congress. The arguments that have been bright forward are those that are for and against. Interestingly, both sides of the debate do seem to have viable points. However, this is an issue that must be addressed in a serious way. The only problem with increasing the minimum wage is the fact that this is a blanket decision and covers all kinds of employers from the biggest multinationals to the smallest startups. Minimum wage should not be increased because this will main that small business, which are said to play a very crucial role in the USA economy will be affected negatively and this will have a negative impact on the economy. As Hasset and Strain (Para 15) say, it is “….because it will make it more expensive for businesses to hire young and low-skill workers at a time of crisis-level unemployment”. The truth is that the minimum wage is a problem in the USA. With big corporations such as Wal-Mart and McDonalds taking advantage of the minimum wage to take advantage of their employees despite the fact that these companies can afford to pay better salaries, there is a need to consider this issue. However, the solution is not to increase the minimum wage for all employers, but to address the issue with much more wisdom. However, there are experts who do not see this is this way. For instance, Cassidy (Para 2) argues that he minimum wages must be raised because of two major factors. First the inflation rates have increased over the years while the minimum wages have remained constant. This means that the workers are getting lower pay than can meet their daily needs because the inflation has reduced the value of the dollars. While the minimum wage does not increase as fast as the inflation rate reduces the value for the dollar, the firms that sell products and services to the consumers increase the prices of their products as soon as the inflation rate has reached a significant level to affect their bottom-line. Secondly, he shows that the American minimum wage is so much lower in comparison to the other first world nations like those in Europe and in Australia. However, what people like Cassidy do not realize that that there are more complicates issues when it comes with macroeconomics. This has been addressed by (Finnegan Para 5). Finnegan (Para 3) argues that increasing the minimum wage is not necessarily a poverty panacea and that those who think that this will solve everything are wrong on all counts. He argues that the issue of minimum wage is a complex issue and dealing with it requires knowledge of how macroeconomics works. In a nutshell, what the he is arguing is that the minimum wage should not be seen as the solution to all American economic problems. Brenberg (Para 3) supports what Finnegan says. He argues that if the minimum wage is increased, the implication to the economy will be far worse than having low minimum wages. He argues that that the younger people are the ones to suffer the most because if the minimum wage is raised, this will mean that the businesses will stop hiring and since the young people are the ones without the work, they will have to stay jobless. Eventually, everybody will be affected negatively because an economy with high numbers of unemployment ends up having a negative impact on everybody. This is very true especially with regard to how small businesses which make a majority of the employers in the USA are going to be affected


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