For the time being Germany is one of seven countries in the European Union, which includes 28 countries, to be without a minimum wage level. Only recently Angela Merkel, the German Chancellor, has approved the first minimum wage of 8.50 euro an hour to be introduced in 2015. At first minimum wage has been established to reduce poverty. Many supporters do believe it keeps poverty at a lower level and increases the standard of living. People opposing the minimum wage think that it increases unemployment and also harms the less skilled workers. It can be said that the minimum wage insures that people are paid properly for their work: It is being defined as the lowest amount an employer can legally pay workers per hour. However, there are both benefits and …show more content…
With all the benefits minimum wage takes with it, we unfortunately do also have drawbacks as well. As soon as minimum wage is introduced employers will have issues paying their workers. Many companies or businesses have a limited budget and suddenly the employer can no longer keep the same number of workers and therefor need to make layoffs. Workers will be left unemployed. Or another solution would be that earnings get reduced. Connected to my first thought it will definitely decrease job growth in small businesses or even lead them to be broke in the long run. Why? Because most of them may not be able to afford the new minimum wage at all, they will struggle paying their employees or earnings will drastically get reduced, putting more burdens on small staffs. Till now the minimum wage would only lead to fewer or not well paid jobs. Low paying jobs asking for low skills are most likely to weaken with a minimum wage, if product prices do not get