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The pros and cons of raising the mininum wage

Updated on April 5, 2016

As a lot of Americans know the minimum wage hasn't been actually raised around our whole country, but few states have made a move to raise their wage due to the rate of inflation.

Because of the average rate inflation in the united states, the overall minimum wage hasn't really kept up at all.

Even though the U.S. economy isn't still at the best, we find a lot of people who have a desire to raise minimum wage up. There are others who tell people to get a better job!

As we know in this day in time in order to get a very good job that pays well there is a price to pay.

What I mean by this? An individual either has to know somebody or have to go through some types of process in order to get the job.

What process could this be we might ask? Sometimes, a person has to go through two or more interviews? They have to be experience at something to be qualified for the job! Too, They have to go to school in order to get some type of license to be qualified.

Before talking about the couple of pros and cons to minimum wage, I know most people are going to disagree, and that's fine by me. I know this is a debate that can go on and on.

With raising the minimum wage up, but there are a couple pros and cons with that issue as well.

I want to discuss a couple of positives with raising the minimum wage but it's not as many though.


1) . This causes companies that have plenty of money to stop withholding cash

What I mean by that statement? There are most companies in the United States that have more than enough money to pay their employees, but they choose not to? There is no excuse for it!

What I mean by there's no excuse? Most companies don't have to worry about their ' expenses because it's well covered! They have hardly any vendors ( other companies) to pay out. There isn't no or very little debt on their balance sheet.

What most U.S. companies do with their money? It is given to higher management and CEO's extra bonuses! These higher officials in most of these companies aren't not even thinking about their employees at all.

Not understanding that the lower employee is the one who does the most work, it's not higher management.

As most of you know, raising the minimum will cause a dent in the salaries extremely high paid ceo's.

Because of the dent, the high management and ceo's refuse swallow their pride and greedy ways and take a cut from their salaries. They're not going to do it.

What do they do? Majority of companies will deceive the public and saying -" we don't have the money and have lay off lower employees."

Not because there is low demand for their products, it's because of their pride. They don't want to give it up their huge bonuses and salaries for their workers.

2). When the wages are up, a person can spend, save, or spurge more when prices aren't high.

Now on this part, I had to really think about this statement before putting it up. Listen to me now, I know some of you aren't going to understand what I am about to say here.

When prices are high, people can't spend or spurge on what they want. It will cause them to start saving more and trying to have cash to cover their expenses or on food.

When people aren't spending on a companies product, this will cause the majority of companies to have a high rate of layoffs or probably go out of business.

When prices are at the right rate adjusted with minimum wage, people will have more to cash to spend, causing majority of business afloat,.

If products are on a demand, it keeps the business doors open and not closing.


1). Lack of Demand of the business sector

The first one a lot of people will wonder about this statement. Let me explain! If there is a law passed for the wages to increase, it can hurt the most smaller companies. The reason why is because they don't have a lot of customers buying or ordering their products.

In reality, this is what happens! It can cause certain smaller companies to have a harder time covering their expenses and paying out their fellow employees.

Due to the lack of demand of the product or more, it can lead to smaller companies going out of business.

2). Paying out more clients or far behind in debt

What do I mean by this? Some companies might have plenty of money. You have to look at their business structure.

They might have to pay out other companies a huge dozes of their money either doing a service for them, helping to get a huge order out! Sometimes they have a contract with most companies. This is how they keep their business to run afloat or the proper way!

My point is that some companies have so many vendors ( other companies) to pay out, which it's because of the reason that the pay wages of particular companies are extremely low.

Plus the necessary expenses that they have to spend as well.

Overall, this can put a huge dent on their cashflow causing the pay wages not to extremely high!

If the minimum wage was to go up for these particular companies, they would have to cut hours on employees, but not necessary lay them off in most situations.

When a company is in so far behind in debt and trying to pay off their debtors, it can hurt their business a lot.

In most cases, some companies work out a deal and negotiate a deal with their debtors, but there are some who can't.

Due to paying their debtors, If the company is behind on paying debt due to using so much leverage( borrowing money), it can cause a hurt on them if they have to pay their workers more.

It can probably cause layoff of workers, or probably the company have to file for bankruptcy in order to get protection from their debtors.

Final point, I know that some will come and argue about this issue. However, it is a plus for most people,but it's a con for most people. All of you are free to give your opinion.

Should the minimum wage be raised in the United States?

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