Minimum Wage Should Not Be Raised

Government in the Economy Higher wages, higher prices or low wages, lower prices? The idea of making more money seems great, but it also comes with consequences. I believe that keeping wages low in order to keep prices low is the right thing. Everyone wants low prices and want a higher wage, but those two things just do not go together. There are two reasons as to why the minimum wage should not be raised. It would result in jobs being lost and prices would become very high. A reason lower wages are better is that raising the minimum wage would lead to jobs being lost. A higher wage makes it more expensive for companies to hire workers, so reducing the number of employees would balance out with the wage. A higher wage makes it more expensive for firms to hire workers. If there is a big increase in the cost of an employee, the demand for employees will decrease and companies will want less. For example in Seattle, the minimum wage was made to be $15, which led to a rise in unemployment. Many employers cannot afford to pay everyone that much money without taking a loss, so a higher wage means less jobs.

A company would not have enough money to manage these higher wages and still make a profit with their low prices. That means that they would need to raise prices in order to make a good profit. Now, many people will not be willing to pay more money for something just because the workers are getting payed. Buyers are concerned about the high prices, not the reason behind it. These higher prices would affect everyone, the people who are well-paid and the ones who are not. Not everyone is making the same amount of money, and the high prices are not fair to anyone. Having to raise prices would not be beneficial for anyone, if anything, it makes things much more