Free Essays,College Free Essays,Free College Essays at Anti Essays

Minimum Wage
Minimum wages, in my eyes, are not a good idea. Increasing the current minimum wage is likely to do more harm than good for businesses, employees, and even consumers. To show you this, let us suppose that the minimum wage is raised by $2.10. Then we can consider the possible choices for business owners. Who must find a way to deal with the increased labor costs. In this essay I will discuss four possible paths that a business may take after a minimum wage law is passed.
1) When businesses are faced with higher expenses, and they need to maintain their profit margins in order to remain competitive, then the business “downsizes” and will terminate part of its workforce, which causes unemployment. Also the business is more reluctant to hire new employees in the future, because it can not afford to keep as many people as it could before. The company will often demand more experience and skills from anyone else that is hired. This cuts off the bottom of the economic ladder by making it hard for people who have no prior job experience to receive their first job, and advance in their careers.
2) Another is the business does not want to fire anyone, and may have already managed to do away with the incompetent people of the workforce. The owner(s) know that even after the law is passed, it will take several months before it becomes mandatory.

So they do not let anyone go at first, but instead they let the people go slowly. Over time, some people will quit or retire, but the company does not higher new workers to replace them.
3) One more thing is that the business cannot afford to fire anyone, because it has already downsized and is running smoothly. The number of permanent staff can not be let go, because they are performing a major responsibility within the company. Also, they might want to expand, which will require the hiring of more employees, and some will need to be paid at more than...