Minimum Wage Is Bad Essay

Topics: Minimum wage, Unemployment / Pages: 4 (764 words) / Published: Apr 16th, 2017
Many countries, both developing countries like China and developed countries like United States, in order to ensure workers a minimally adequate standard of living and assist unskilled workers and teenagers, they impose the minimum wage laws, which dictates the lowest price for labor that any employer may pay. Nonetheless, although the starting point of estimating minimum wage laws is good, many economists, such as American economists named Henry Hazlitt, indicate that the minimum wage is the worst method and wrong way to enhance the wage. Why is the minimum wage bad way? As we know, the minimum wage law is used to help the poor, however, it actually hurt them. Owing to the minimum wage laws, plentiful companies have to increase the wage of unskilled workers. Thereby, they will cut down some workers to reduce the cost. Workers, who are fired, are usually unskilled people that the government tries to help. As a result, the unemployment rate raises, and skilled workers have no impact or benefits from the minimum wage laws. Furthermore, in the bulk of developed countries, the minimum wage …show more content…
The government redistributes income from business towards low wage workers to reduce inequality by the minimum wage laws. It also provides a boost to low wage workers to look for a job because the minimum wage is higher than the previous salary. Additionally, the increase of minimum wages can light workers’ enthusiasm to improve their productivity. As well, according to the survey, when American minimum wage raised by $7.25 per hour, more than 16 million low-wage workers directly benefit from the increase, and another 8 million slightly skilled workers get relevant benefits. This would increase $31 billion to the paychecks of families ranging from poverty level to the middle class to boost their spending power and add the nation’s economic output and total

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