Some may disagree with increasing the minimum wage because layoffs may be effective on certain individuals. An employer with a small compensation budget in an economy where the minimum wage increases may no longer be able to compensate the same amount of employees at a higher rate. Therefore, that same employer must layoff employees to keep their budget. While some employees would be making more money, others would be unemployed. Even though raising the minimum wage does create layoffs for certain individuals, it also creates more job opportunities. If minimum wage workers spend more money then business’s earnings would increase. As a result, those businesses would have to hire more employees in order to keep up with the increased sales from minimum wageworkers.
When businesses pay their minimum wage employees more, some businesses may not be able to afford to hire new employees. This means that those who are less skilled or inexperienced would have a tough time searching for a job. Businesses would have rather someone who knows what they’re doing with background knowledge than someone who’s inexperienced with no back knowledge whatsoever. This would push those who are less-skilled to either learn the job they want and obtain experience in someway or go back to school and get a degree for a job that will be able to support at least most of their financial needs. Not all busines...
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A positive impact that would follow if we increased minimum wage is that there would be a decrease in the turnover rate. Minimum wageworkers would feel more satisfied and content with their job, which means they are less likely to quit. This lowers the turnover rates and prevents the expenses of hiring and training new employees. Hiring and training new employees sometimes cost businesses a lot of money and if that could be prevented, many businesses would appreciate it and could invest their profits elsewhere. If businesses have more money to put out that helps stimulant the economy.
Raising minimum wage has its pros and cons just like everything else that exists. Except that raising minimum wage has more pros than cons and just like everything else in the world if the pros are higher than the cons than we can definitely work through it and improve the economy.
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