An analysis of the new bill to increase the minimum wage to $15 reveals several challenges employees, employers, and the state are facing: Higher cost of living, unemployment, and bankruptcy. Employers will have to raise prices of the products to increase the sales and profits. The state will have a higher cost of living than it had before. Unemployment will increase resulting in more dependency on the government. Many business owners may have to declare bankruptcy so they won't lose more money. Store owners will need to compensate for the decrease in profits by increasing price of all goods. This bill may help employees at the expense of employers and business owners.
If the bill goes into effect, employers will have to raise the prices of products to increase sale and profits. Most restaurants have a steady income where employee wages, losses, and sales are all balanced. Changing the wage of the employees will disrupt balance and some form of action will be necessary. The action business owners will have to take is to increase sales by increasing
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The restaurant owners may be forced to fire some employees to maintain profits. This will drastically affect the unemployment rate.There might be more people on the streets starving than there were before the bill. This bill may lead to more poverty, higher crime rate, increased number of homeless people, and bankruptcy. These employees that will get fired won’t be earning $15 per hour when they don’t have a job.
If the business owners increase prices, then the result would be a higher cost of living. This bill will result in higher prices for groceries, toiletries, entertainment, and transportation. New York already has one of the most expensive cost of living in the US. This bill has the potential to increase poverty and homelessness. Many small businesses will have to increase prices, and won't be able to compete with major