Increasing the Minimum Wage is Not the Answer
Before the Government introduces the new increase in minimum wage, often referred to as the ‘living wage’, they must consider the significant impact of the consequences of doing so. The increase in minimum wage has fatal consequences for the very people the government is trying to help, the poor who are affected by an unfair tax system. The introduction of this new arbitrary increase in wage will hit the poorest the hardest; the loss of jobs to automation and productivity, and, by proxy of the soon-to-be the minimum wage, the brutal effects of inflation. The opposition will claim that anyone against the new living wage is oppressing the poor, but that very same opposition fail to fully explain what the living wage is based on, except the abstract argument that it is based on basic living costs – do we all not have different living conditions?
One of the main flaws of the new increase in minimum wage is that the government, and all of the other proponents, take for granted that many businesses will be okay with it. They will not. Think of it like this: Businesses want to minimise expenditure and maximise profits – so why would they suddenly be okay with losing money due to the increasing costs of staff? It would be cheaper to automate some low-skill jobs- such as an individual who takes your order at a fast-food restaurant – and so the surge in wages, as previously stated, hurts the poorest in society. The advocates of the increase automatically answer poverty with an increment in wages, a position which leads to the loss of jobs due to automation. In fact, many retailers plan on cutting jobs and raising prices just to afford the costs of the soon-to-be living wage. One of the bi...
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Not only will the new minimum wage cause people to lose their jobs, but it will cause the people that have managed to secure their jobs to lose out on many tax credits as a result. In fact, it is estimated that the poorest in society will actually lose, on average, up to £1000 per annum, a significant chunk of change which will leave the poorest continuing to take the burden of another nonsensical, preposterous policy from Westminster.
Overall, the increase in minimum wage sounds like a good way to end the horrible poverty which is prominent in the UK, but the solution to the problem is not as simple as raising wages. Raising wages is not an approach which will suddenly make the country prosperous, as the proponents allude at. The cons definitely outweigh the pros: job lost to increase business costs and productivity levels, automation and inflation.
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