Question

should Congress increase the minimum wage? To what level and why or why not? Discuss what effects raising the minimum wage would have on workers, small businesses, and the economy in general

Answer 1

Minimum wage is the minimum wage a company can pay to its worker. Congress should increase the minimum wage because:

• It will help workers to keep up with inflation, so that they can have a decent lifestyle.
• Increasing the minimum wage can reduce income inequality.
• It will help in economic growth as it will give more purchasing power in the hands of worker which will increase demand and business revenue.
• This will reduce labor turnover rate as worker will not leave job to find a higher- paying job.

Congress should increase minimum wage to a level that will help workers to keep up with inflation. It should be increased to a level that workers are able to afford enough food, clothing and shelter.

Effects of raising the minimum wage have on workers, small business, and the economy are:

Workers:

• It will increase purchasing power of workers.
• It will increase there productivity .
• It will promote greater job satisfaction.
• Improve in standards of living of workers.

Small Business:

• It will increase productivity of workers, as employee morale increases when they are paid fairly.
• It reduces labor turnover rate which further reduces training costs and recruiting costs.
• It reduces labor leaves, this increases the productivity as workers are absent from work less.

Economy:

• Creates more jobs.
• It will boost economy as due to increase in demand, workers have more purchasing power.
• Improved standards of living of workers.