Should Minimum Wage Be Avoided

More and more people start to pay attention on Economic area, especially they care about their wages. The reason is that wage really important for supporting people’s daily life. In general, higher wage can afford some colorful life, but lower wages sometimes even cannot afford a dinner for a people. Thus, many people and the government want to increase the minimum wage for ensure people’s basic life. In CNN NEWS website, the author Jeanne Sahadi reported a news about increasing minimum wage. This news states that the Berkeley Labor Commission want to increase the minimum wage to $19 by 2020, and many employers hold a negative viewpoint because of the decreasing benefits. However, I disagree with these employers’ perspective. I think the negative impact of raising the minimum wage can be avoided. Dorothee Mitrani, one of the employer in the news, said, “We can raise our prices. But you can’t charge $25 for a sandwich.” Dorothee thought that if they have to increase the minimum wage for employees, it means the operating cost are increased also. And if operating cost are increased, the benefit will be decreased automatically. For solving this problem, the only way they can do is to charge more money per product to customer. However, the problem is that increasing price will decrease the quantity of demand. In other words,
He said, “if a business goes out of business, job disappear and the city doesn’t have a tax base.” In other word, Armstrong thought one of the negative influence of increasing minimum wage is decreased employment rate and tax base. The reason is that raising minimum wage will lead to a higher operating cost for employer, and if employer cannot increase the price of product, they have to get a lower benefit than before. In a long time, employer may choose to fire some employees for decreasing the operating cost. It is decrease the employment rate and government tax