Minimum wage is the lowest amount that
business can legally pay their workers. In the state of Florida, minimum wage
is $8.10 per hour. Many people have
different opinions on whether or not the government should raise minimum wage.
There are the people that believe that minimum wage should be raised, because
workers that earn minimum wage are hard working and deserve the money to
provide for the families they have. The people with this opinion have not
looked at the factors surrounding the raise of minimum wage. If minimum wage
was raised, employers might not be able to afford having a multitude of
workers, so jobs will be lost.
When people say the raise of minimum wage
will allow one to have more money to provide for their families, the reality is
that this extra money that will be earned will be taken right out of their
pockets. As minimum wage increases, so do the prices of everything else. This
may have benefits for our economy, as bringing more money in is not a bad
thing, but this would be detrimental to the minimum wage workers. According to
object.cato.org, raising minimum wage by 10% would ultimately cause prices of
food to go up by 4% as well. Grocery shopping is not cheap.
are already expensive as they are now. Visualize buying groceries that are 4%
more expensive than they are currently. If paying workers becomes too expensive
for employers, that would cause loss of jobs and you might be laid off. Now
imagine paying for the rising cost of groceries without your job. When unable
to provide for yourself and your family, attention is turned to taxpayers,
which eradicates any system of profit that is gained for the people that would have
advantages from the raise in minimum wage. Raising the minimum wage is not a keen
solution, as all benefits come with a price.
As shown by the graph, as minimum wage
increases, businesses are forced to pay higher than the equilibrium wage. When
a price is above the equilibrium, this causes a surplus, which forces
businesses to produce more than what is demanded. However, when a price is set
below the equilibrium, a shortage occurs, and businesses produce less than what
“10 Reasons to Raise the Minimum
Wage (with Charts).” Alternet. N.p., 04 Apr. 2014. Web. 12 December 2017.
“15 Reasons Raising Minimum Wage Is
Bad.” Republican Reader. N.p., n.d. Web. 12 December 2017.
“Why Raising The Minimum Wage Kills
Jobs.” Forbes. Forbes Magazine, Dec.-Jan. 2012. Web. 12 December 2017