Minimum Wage Should Not Be Raised

Hello Julia, I agree with you. minimum wage should not be raised because there will be high price production, and inflation, which will hurt consumer especially the low-income family. Raising the minimum wage commonly may be seen as a way to give a low-income worker a raise, but it resulted in a surplus since the minimum wage is a price floor. Surplus happens when the quantity of supply is greater than the quantity of demand. In this case, more people are willing to work than employers are willing to hire at the stage of minimum wage price rising and it will result in high unemployment. There would be a high unemployment rate because employers are forced to pay more which likely lead them to hire fewer workers in the workplace, especially for the small business or companies. Fewer people getting hiring mean less work is being done.
If the small business or companies’ employer wants to pay their employees with a higher price they would also have to increase the product that they produce.
Higher prices would hurt the consumer the most, for that the supply good would be increased and the quantity demanded would be decreasing. In resulting the overall consumers purchasing goes down too. The increase in minimum wage would also decrease the incentive for low-skilled workers to increase their human capital labor. For that, human labor might be replaced by technology machines since they are most likely to become cheaper than the human labor force. Under those circumstances, there will be increasing rates of underemployment and employment meaning people are losing their jobs or won’t have the required skills to work the job. For those reasons, the government is highly going to increase their spending on entitlement. I also agree with your statement about Obama raises the minimum wage would be bad for the economy and that the governments should not interfere in
business.