Why we keep minimum wage

Why we keep minimum wage

  • Submitted By: hhodson
  • Date Submitted: 05/14/2014 10:28 PM
  • Category: Business
  • Words: 1146
  • Page: 5


Minimum wage is an essential part of millions of peoples’ lives. It ensures that people have enough money to be able to survive. Companies will save money without minimum wage laws, but people will be forced to work for very low wages that aren’t even enough to live off of. There will also be a problem with inequality when employees are doing the same exact job, but are earning different (lower) wages than others. Also, the government will be affected when the people aren’t making enough money to pay a sufficient amount of taxes. This will increase welfare and unemployment which will put a negative strain on the government.
It is understandable that the companies that are paying the wages are trying to save money. However, if a company is dependent on saving money through paying less than the minimum to survive for their employees, then it is inevitable that the company will not be likely to succeed. The company should not be struggling so much as to not being able to pay their employees a reasonable amount of money. Our current minimum wage isn’t a very high wage at all and it should be an easy rule to abide by. I could understand the difficulty on the company’s part if minimum wage was set to a very high amount such as $20 or $30. High minimum wages such as that would be hard to work with. However, the minimum wage is not set even close to a wage that would be understandably unattainable for companies. If employees are paid only a couple of dollars an hour to work, they will not be motivated to be doing a good job at what they do. However, if they are earning a reasonable amount, they will be happier and much more inclined to work harder and be more productive. As a result, the company will make even more money by the revenue they make off of the production. That way the cost of the wage is balanced out by the production from the employees.
If there was no minimum wage, the financial well-being of a large part of our population would just turn to chaos....

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