A minimum wage increase would mean a decrease in the well-being of our citizens. Our well-being would be affected because raising the minimum wage would result in issues for businesses. It would also increase unemployment and affect the upward mobility of the working class. While people will be thinking that raising the minimum wage is great, it is actually catastrophic for the country.
Raising the minimum wage will result in issues for the business owners of America.
According to Caron Beesley, about 70% of businesses in the U.S. are sole proprietorships. These are the businesses that run our economy and they are the ones that would be affected most by a minimum wage raise. A poll by Gallup in 2013 went to small businesses and 60% of the owners
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Employers would bring machines into do the work that people could do because machines would be cheaper than paying an employee. They also eliminate the chance of someone being hurt during a dangerous job and they increase productivity. An example of this would be at places like Mcdonald's. They are starting to replace cashiers with a machine that you can order yourself so there isn’t error. If a company does not resort to robots they have alternative options. Companies would start to outsource their jobs to other countries in look for cheaper work. This would increase unemployment rates. An example would be stores like Walmart. They receive most of their products from China because it's much cheaper than having U.S. citizens make them so when they have to start paying them even more, Walmart will start outsourcing even more. Due to the unemployment rates increasing crimes such as theft and drug sales would increase. According to “Minimum Wage and Crime” a minimum wage increase would increase crime by 1.9% in young adults. While the wage raise increases unemployment, it decreases our inspiration to do better