Question

ESSAY: Will raising the minimum wage be practical?Why/why not?

Somethings to touch on.

Will increasing the minimum wage help or hurt employees?

Will increasing the minimum wage help or hurt businesses?

What problems might be caused by raising base pay?

What are the benefits of an increased base pay?

*** NEED 1-2 SOURCES ****

Answer 1

The number of workers hired by the firm because they tend to reduce the workers hired for cost cutting increasing the minimum wage rate will help some employees and hurt other employees. It will help some employees as it will increase their wages and thus make them better off. on the other hand, it will hurt some employees by making them unemployed because minimum wage rate creates surplus of labor and this leads to unemployment in the labor market. Thus, it can be stated that it will help some employees and hurt other employees in the labor market.

Increasing the minimum wage rate will hut businesses because it will increase their overall cost of production and as the cost of production increases total cost for the firm’s increases and this increase in total cost for the firm will reduce their profits hurting businesses or employers of labor force.

Raising base pay for the employees will increase the overall cost of production and also reduce. Thus, unemployment rate will increase in the economy as the base pay increases.

Increased base pay will make the employees better off because of the concept of efficiency wages where the productivity of the employees increases as their wages are increased. This is known as efficiency wages. As employees improve their productivity overall output produced by the firm will increase and also increase demand for their product.