The Consequences Of Passing Minimum Wage

United states should not pass a minimum wage. The reasons for this is that it will negatively impact the economy in several ways: Product costs will rise in order for companies to maintain profit margins, which will lead to drops in demand for products produced.

This can ultimatley lead to job losses, as consumers may choose to purchase foreign goods which are more competetive in the market.

Smaller companies will not be able to compete effectively in the market place, leading to more job losses, and possibly pricing the company out of the market. Inflation will occur due to the inflated prices of products.

Although the wage of low paid workers will rise, the rise in inflation and rise in price of goods may make them no better off.

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