Question

What are the upside and downside of a higher minimum wage? ****There are many arguments both for and against a higher national minimum wage. In many cities around the country, ****the minimum wage has already increased to $15/hr. ***What's your option on this subject? *****Do you believe a $15/hr minimum wage will be a good impact on the economy****?  

Have you ever worked at a minimum wage job before? Or are you working at a minimum wage job now? *** Will a higher minimum wage help you?

Answer 1

The issue of minimum wage has both the sides ,we will discuss the pros and cons as below.

Upsides:

1. The minimum wage will increase the income level of labour and the lifestyle.

2. This will help in reducing the inequality based on gender and race.

3. The income of the poor people will be above poverty level.

4.This will help in reducing unemployment.

5. There will be slight increase in tax collection for government.

Downsides.

1.This will impact companies revenue and will be resulted into slower hiring.

2. This may lead to dropouts from college.

3. This increase the investment of conumers in machines rather than human resources.

4. For micro and small enterprises , this will be a burden.

5. The wages of companies might get shuffled , to give the high wages to smaller employees.

The minimum wages should be there for an economy and consumers. If there is no intervention of government in this section then there will be a huge gap in income of Poor's and rich. As an economist we should support this idea as giving only a minimum wage will cause a lot to the company's.

I haven't worked at a minimum wage job before, but working at will surely help everyone, sometimes companies private economic concerns affect the employees, which results into low wage or job loss which should be stopped .The higher will surely help in living a good life.