We Should Abolish The Minimum Wage

My chosen topic is minimum wages increasing in the United States. This topic came from the idea from the news. It was brought up in the discussion. This topic was interesting because I work at a retail store in New Jersey. The wages in New Jersey are seven dollars and twenty five cents. In 2014 it will be a dollar up so it is going to be tough because prices will rise. This topic affects me because now I worked as a minimum wage worker so I get pay by an hour. If the wages rise then something will decrease and increase.

Minimum wage is the lowest hourly pay employers are legally able to pay their workers. In United States there is huge debate on whether or not to raise the current minimum wage rates from seven dollars and twenty five cents per hour. States are leading push to increase the minimum wage by Democrats who appeal to working class Americans. Congress want to increase minimum wages above seven dollars and twenty five cents. The issues of whether to raise the minimum wage or not.

Increasing the minimum wage makes employers want to hire less minimum wage earners. It causes employers to substitute machines, technology for labor. Hiring people becomes more high-priced so you change to something else. Instead of hiring two people to plow the snow with push snow plowers, the employer buys a riding snow plower and employs one person, who, with the faster and better riding snow plower, can mow more plows at a quicker rate, then removing the need for a second worker. In January 1, 2012, California’s minimum wage was set as eight dollar per hour.

Some people do not like increasing minimum wages because of the reducing employment. Small businesses will not able to afford of paying more. Minimum wage jobs are not for people how...

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... it. Another example imagine three competing coffee shops. All three need to make a certain profit margin to stay in business and make their effort worthwhile. Then they all three coffee shops will lower their prices as much as possible while still covering that necessary profit margin. If one of the shop tries to charge more, customers will simply go to the competitor shops. Wages are prices of labor, so the minimum wage is a price control. Like any price control, it has a ripple effect prices of other services and goods have to compensate. When an employer's labor costs go up, he has to lay off workers and/or increase the prices of what he sells.

As a result, abolishing the minimum wage will allow businesses to achieve greater efficiency and lower prices. Teenagers, college students and interns all have their options and opportunities limited by the minimum wages.