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Pros And Cons Of Raising Minimum Wage

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People never think of the cons that come with raising minimum wage; they only think about how they could profit from it. Servers at "Waffle Now" eating establishment, have complained about how they need a more plentiful pay. I understand that with giving a higher wage, it creates people's pockets to become bigger and they could thrive on all their responsiblites. But, with extending the wage, this comes with amping up prices in the restaurant, have a shortage of staff , while also cutting hours or people possibly from their job. Pay more could potentially set back this restarunt that already isn't flourish the way it should.

Employees are regular people too and they feel they should get paid at non- tipped minimum wage fr such hard work and to manage the cost of living. Needless to say, yes, life does get expensive, but unless a person has more then one job, it can be extremely stressfull to survive off of a minimum wage paycheck. Also, Waffle Now has a low profit margin; People can not expect to make more money when the restaurant isn't profiting that much itself. Paying Employees is already very costly to most companies in general- the greatest expense for overall restaurants. …show more content…

Let' say the restaurant manager decides not to raise menu prices, although, because of his decision he has to terminate some staff due to expenses . Now, people have higher pay, or some have NO pay or source of income, because they are unempolyed . Another reason, Increasing wage can and would effect people poorly, it could cause a shrinkagein hours resulting in the same amount of money a person was making before. An employee would be making the same amount of money with excelled pay, because the hours they had before, would no

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One of the cons to increasing the minimum wage is that it helps larger corporations and hurts smaller businesses, therefore, competition is decreased. The bigger companies use raising wages acts as a barrier to entry to new business entering the market and create a monopoly for larger companies who have more profits to afford the increase. An example of this is Wal-Mart, who can afford to pay employees nine dollars and twenty cents an hour but a little store such as Meijer 's who does not make as much profit would limit their hiring of new employees and would cut hours to compensate. A family store might decide that the cost of entering the market is too high to endure as they build up their clientele and develop their business they decide not

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799 Words | 4 Pages

Specifically, Renesi ‘breaks down the math’ by noting that a “typical franchise sells about $2.6 million worth of burgers, fries, and Happy Meals each year, leaving them with $156,000 in profit.” He argues that if a franchisee has 15 part-time employees on the schedule earning minimum wage, a “$15 hourly pay requirement eats up three-quarters of their profitability.” Renesi, notes that a “$15 minimum wage wipes out their entire profit.” He further argues that fast food customers are very sensitive to the price increase on menu items. Renesi also makes a strong logical reasoning that if employee wages are cutting into what is left of profit for franchisees - workers could be replaced by a self-service computer aided kiosk.

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In her paper she shows us that businesses only have a certain amount of money for payroll. To adapt to a higher wage these businesses would either have to fire a portion of their workforce or cut hours. She uses an estimate from a recent study to prove this that estimates,

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308 Words | 2 Pages

Tips should not be a reason for these employees to not be getting paid minimum wage. Sometime the employees don't even get tiped,so how can tips affect getting paid minimum wage?If the employee isn't getting tiped everytime they serve a customer and isn't getting paid the minimum wage, then does the manager really expect them to keep working there. At this rate the restaurant won't

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1094 Words | 5 Pages

First, one main reason that the minimum wage should be raised is because the economy will prosper. “Economic Policy Institute stated that a minimum wage increase from the current rate of $7.25 an hour to $10.10 would inject $22.1 billion net into the economy and create about 85,000 new jobs over a three-year phase-in period” (ProCon). This quote shows that the economy will flourish from the increase of the minimum wage and that unemployment will decrease. Another quote that shows how raising the minimum wage will affect employment is “To the extent that through these contour effects it affords as much as 70 percent of the workforce greater purchasing power, it effectively increases aggregate demand for goods and services, which should ultimately lead to the creation of more jobs” (Challenger 19). Bryan Covert supports raising the minimum wage by

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437 Words | 2 Pages

I am currently completing an on-campus Microeconomics course. When the subject of minimum wage came up, one of the other students made the comment that he thought minimum wage needed to go up because he had been in a job for almost a year and was still making minimum wage. Why should a person who is working at a fast food restaurant make more than what another person is willing to do the job for unless they have a special skill? The current debate is whether the minimum wage should be raised to $15.00.

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407 Words | 2 Pages

When you raise minimum wage you raise the price in everything else for instance if minimum wage was raised ten percent that also raises restaurant prices 0.7 cents that may not sound like a lot but it starts adding up sooner or later and who knows then it could raises prices a whole dollar. Some people think that because the cities they live in are so expensive that minimum wage should be raised but if you live in an expensive city and are also living off minimum wage and can not afford it then you should not be living there. Also women think that they can not have a good lifestyle for their children with what minimum wage is paying. If you are living off minimum wage and trying to raise children then maybe you should find a different job where you can afford a life for your kids. Minimum wage should be raised because the economy is at a point where if minimum wage is raised there would not be a drastic change.

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1221 Words | 5 Pages

Many of these employees’ tips earned increases their hourly wage. Employees that work for minimum wage often have their own bills and families they also need to take into consideration when they receive their paycheck. Is this $7.25 an hour enough to support a whole family? As the cost of living increases, their paycheck stays the same. In terms of the cost of living today, the minimum wage price is 30% lower than it was in 1968.

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1093 Words | 5 Pages

Why? Some people say it’s because that certain people will be making more than the people working at a company the longest. There are also cons to raising wages. This reason comes along with employers may begin to struggle and making some workers upset because of the amount others would be paid. Some workers that have strived to reach the pay they have, now are upset because the people working at a company for not as long have just reached the peak income.

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531 Words | 3 Pages

Restaurant owners, facing a higher wage bill, would like to pass the costs on to their customers. But their customers are people whose incomes have not been affected much, if at all, by the higher minimum wage. So if prices at the restaurants go up, these people will buy less and the restaurants will now lose some profits. They may raise prices a bit, but not much. Whatever they do, the restaurant owners will have to, if you’ll pardon the term, eat some of the increased costs.

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934 Words | 4 Pages

An increase in hourly wage for lower paying jobs would cause a multitude of socioeconomic issues resulting in vast unemployment of low-skill workers and general inflation of everyday consumer goods with other economic issues. Lower-skilled workers

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645 Words | 3 Pages

or making almost to those that has been working for years. The rise of hourly wage has caused and effect those who’ve been employed and have been working for quite some time already. For those that was earning less than the newly established wage, their wages will be raised to the latest minimum wage without a cost of living adjustments from their employers. And then here comes the newly hired employers making the same wage as those that do have experiences due to the fact that their ‘newest’ wage has been adjusted to the minimum wage without any additional adjustments to their skill levels. Therefore, the employers are getting the upper hand in this situation, because they are now able to pay those with and without any skill levels the same wage.

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1506 Words | 7 Pages

Minimum wage is not enough for people to rely on. Many people that make minimum wage are likely to go through a time of poverty. Employees that make minimum wage are said to put less effort into the job, than the

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689 Words | 3 Pages

Raising the minimum wage will cause prices of goods, accessories , and needs to rise as well. As my first source says “A 2013 article by the Federal Reserve Bank of Chicago stated that if the minimum wage is increased, fast-food restaurants would pass on almost 100% of their

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233 Words | 1 Pages

In today’s day in age in America everyone thinks they should be paid a lot for doing basic jobs. In recent years there has been employees go on strike at some fast food restaurants because they felt they were underpaid and that that should be getting $15 an hour. They might think that $15 an hour

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