Minimum Wage Increase

According to my research the federal government should raise the minimum wage because it would highly weaken the workforce as well as the economy. Low wages are expensive especially for the employers will be forced to make tough decisions in order to absorb the mandated increase to the production cost. The process will generally take the form of reduced hiring hours which has got negative employment impact especially in the tough economy. In my research it was to my attention that raising minimum wage will only favour those individuals who already have jobs, at the expenses of the unemployed. The workers in this case will tend to receive marginal additional wages, for the unskilled as well as the less educated they will be left out to jobless hence; unable to find a job.

 Increasing minimum wage rates negatively affects the society since it fails to alleviate the poverty levels as well as addressing the unemployment state. In my research I found that there is no relationship between an increased minimum wage and eradication of poverty although there is a believe that the low-skilled workers especially those in the poor families experience an income raise when the wage rate is raised, many will lose their jobs thus;  have their hours extensively cut.

Increasing minimum wage tends to have a ripple effect on the employee’s salary wages. The impact of the legal minimum wage on revenues remunerated at the low end of the salary distribution is well recognized in the law which involves the U.S policy makers which continues to engage in an active debate over the minimum incomes. The law suggest that with increase of minimum wage rate there will be a ripple effect on the workers thereby; focus only on those workers on minimal salary (Durham & Baurer, 2015).

References

Durham, C. D., & Baurer, E. (2015). U.S. Department of Labor Final Rule Raises Minimum Wage for Federal Contract Workers. Employee Relations Law Journal, 40(4), 47-49.