The Government Should Raise Minimum Wage

I do not believe the government should raise the minimum wage. Wages stand where they are in result of the employees being low skilled and the market value of what is produced. As shown in the graph below, the government finds an average of supply and demand of the labor and decides an equilibrium price. At this point they would not have more workers necessary, which would be a surplus or a lack of workers, which would be a shortage. If a company pays workers more than what they are valued for, the firm will not stand a chance of survival against its competitors. If there is a gain for the worker, it is also followed by a loss. So if the employees have a gain of the rise of the minimum wage, the company suffers on providing the superior insurances, proper training, equipment, or environment. You will have a gain from a raise of the minimum wage. Sure, that is if you manage to keep your job. Otherwise, you are looking at a high risk for unemployment and on that occasion, you will have a difficult time finding a new job due to the expensive cost to hire new low-skill workers.

Raising minimum wage for those in poverty would be the wrong approach to this conflict. Around half of workers that earn minimum wage are under the age of 25, so with nearly all cases of minimum wage earners, they are not the primary source of income, they are not supporting themselves or families completely. Although few of those that are earning minimum wage are not currently supporting themselves, they are still at a higher yearly income than the poverty line. Only about four percent of these are single parents. For those in poverty that need to support themselves and family are typically unaffected, therefor they will be unaffected by this