Minimum Wage Effect

The Economic Effect of a Minimum Wage Increase in the Fast Food Industry
A question plaguing economists in the news the last couple of years is what would the effect of a minimum wage increase be for the workforce in the fast food industry. Better yet, how would it affect the fast food industry itself. There have been certain areas of the country that have already increased the minimum wage for fast food workers, but the debate is would it work elsewhere. With the increase in the demand from the fast food workforce for an increase in their minimum wage it has spurred on a heated debate what the outcome would be with many believing that it would devastate the fast food work force with a large increase in work force reduction enabling the fast
First, there are many ways that the increase would benefit the workforce and the fast food industry in kind. With an increase in the minimum wage it will help the workforce will benefit from such examples as closing the gap in the poverty level. Where the fast food industry will benefit from examples such as a reduction in workforce turnover. An example of a downside for the workforce is the possibility of a reduction in job availability. Also an example of a downside for the industry is an increase in operating costs. These are just a sample of some of the good and bad facing the workforce and fast food
Some of the negatives that are considered are the polar opposite of the positives and are a matter of situation and demographics as to which outcome will be likely. A prime example of this is the positive that a minimum wage increase will not decrease or affect employment rates. There is indeed the possibility according to some that there is the possibility that a wage increase will negatively affect workers with a reduction in workforce and lower employment rates as stated by Minimum-wage.procon.org and James Sherk in "Higher Fast-Food Wages: Higher Fast-Food Prices." Some examples of how the fast food industry would decrease the workforce was explained by James Sherk, “Fast-food restaurants could reduce labor costs by (a) substituting entry-level workers for more skilled and more productive workers and (b) replacing human workers with machines. Fast-food jobs involve many routine tasks that are particularly susceptible to automation,” (Sherk). Another example of the polar opposite of one of the positives is that of closing the gap in the poverty level. As stated by Minimum-wage.procon.org with the increase in the minimum wage the industry will compensate by reducing the hours that are provided to workers. So, even with an increase in wages with a decrease in hours will not necessarily increase the amount of