Should Minimum Wage Be Raised

When it comes to the minimum wage, there are several debates on whether it should or shouldn't be raised. It may look like it is a simple problem to solve, but it isn’t. An increase in the minimum wage wouldn't totally help the ones who ask for it, but could lead to a series of consequences that would impair, not only them, but all of us. Firstly, raising the price of something reduces the demand for it — as the price charged will be above the equilibrium point — and hence leads to a surplus of the good or service supplied. Assume the equilibrium price is at $5. If I increase it to $8, the good supplied suffers a surplus, due to more supply than demand for it. The same would happen if the minimum wage was raised: there would be a greater number of people willing to work for a higher wage but smaller number of companies willing to hire at the higher wage. Furthermore, an increase in the minimum wage would hurt small businesses that cannot afford to pay their employees, eventually resulting in the layoff of a few workers so that the company is able to remain within budget. That is to say, while some employees will be making slightly more money, others will be left unemployed.
However, it would not only affect the workers, but also the consumers: companies will be forced to charge more from its goods or services and the consumers will be the ones to suffer the consequences. But if employees are consumers too, is it really worth to be paid a higher wage when you are going to pay more for