The Positive Effects of Minimum Wage on the Economy
Working minimum wage does not always mean the worker is not qualified for a job, it sometime means they have the skills to get the job done but they do not have the qualifications to get them a higher paying job. Since they have the qualification to complete the jobs, a company could hire more minimum wage workers for less than what they would pay someone in a higher pay grade. That way they can get the work done faster at a cheaper rate, therefore increasing productivity. (Fitzpatrick, 2009) Increased productivity could mean more business, which means more money. When a company increases productivity and makes more money, it can create more jobs. This would be good for the economy because increased productivity means an increase in Gross Domestic Product (GDP). Goods produced by the country could mean more money for the country, which helps to fund education, provides healthcare and other benefits. This would also get other countries interested in investing in their stocks. (BEA, 2007) 2- Less people depend on...
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