Minimum Wage Should Be Abolished

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Firstly, minimum wage will result in high prices of products. If the minimum wage continues to be a mandate which is a relatively expensive amount for a minimum wage, the businesses will have to increase their product prices. For example if Hungry Jack employs 10 people for $15.95 hourly each because of the minimum wage, with the abolishment it can employ 15 people for $10 hourly each. This therefore will increase the work efficiency and decrease the price of the goods. Minimum wage sectors increases the retail price of 0.5 to 2% each year. These firms will cope with the minimum wages by raising prices of goods and services. To my second argument. Long-service leave, superannuation, carbon tax, work safety and now minimum wage! There are so many regulations and restrictions put on businesses and employers, that if the minimum wage is still enforced to employers, businesses and companies would no longer stay local or within Australia, they would globalise. These companies would move to countries which will give them the freedom of paying their employees the money they want to pay. These countries such as china, India with cheap labour are nowadays very appealing choices to companies in Australia which are strained to challenging requirements. As a direct result unemployment in Australia would increase and the exporting will decrease. For example the Dunlop Company moving to a county with cheap labour left hundreds of Australians jobless. Thirdly, ongoing the idea of minimum wage is economically unsustainable for some small businesses and charitable organisations. People may believe that businesses have a wide range of money to supply a good amount of money however this is certainly not the case for the small businesses. This legislation means that small businesses and franchises would not be able to keep up with the minimum wage and will therefore raise the prices. Imagine a small, local florist who doesn’t own so much. If he or she employs 2 workers he or...
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