Decrease The Minimum Wage Essay

Should the Minimum Wage Increase? Minimum wage is the lowest wage permitted by law or by a special agreement that can be applied for an employee or put simply, the lowest amount of pay that an employee can make. Governments set a minimum wage on businesses in hope for reduced poverty and increases in the standard of living. Minimum wages are beneficial up to a line, when minimum wage is too high, it makes businesses make crucial decisions and must save money by firing workers, reducing output, and increasing prices on products. Over the years, the federal minimum wage has increased and has been beneficial up to the minimum wage increase in July 24, 2009 from $6.55 to $7.25. After the increase, the unemployment rate has soared and businesses fired worker and increased their prices. For this reason, it would be beneficial to the economy if the minimum wage is reduced back to $6.55 because it will decrease the unemployment rate, increase GDP, and help youth and unskilled workers in the job industry. The Great Depression was a devastating time for the United States with
Those who oppose this view say that decreasing the minimum wage will hurt the economy because lowering the minimum wage decreases the income of families so that they can purchase fewer goods and therefore decrease the GDP growth rate. There is another argument saying that is only fair to give an employee a “living wage” and can support at least a family of two for 40 hours a week. This is untrue because most employees that work minimum wage don’t work 40 hours a week anyway so it is already not a living wage but they don’t take the job for the short run, they do it to gain experience and can in the future work with other businesses that require past experience and will pay the employee a higher wage. As stated before, employees can work their way up the income