What are a few advantages and disadvantages of raising the minimum wage? please give me as much information as

Question

please give me as much information as you posibly can, thanks

Answer 1

As a thought experiment, imagine if we raised the minimum wage to $100 dollars.  Few companies could afford employees, and only the most skilled (like doctors, lawyers, etc.) will be employed.

Advantages of a higher minimum wage:

Those who have jobs are better paid.

It sends a message that we value poor workers.

Disadvantages:

Unemployment increases.

It's harder for unskilled workers to get entry level jobs, since they can't compete on price with skilled workers.

More people may work illegally below minimum wage, and avoid taxes.

Answer 2

Negatives:

1. Higher base wage means higher prices for all commodities. This negates the actual wage increase because it costs you more to buy things (your buying power has not increased. companies cannot just eat the extra costs - they will pass it on to the rest of us.

2. Higher base wages mean less jobs available - If an employer can only spend X on employees, and their wages go up he will hire less people or even have to let some go.

3. Fewer merit based raises. Doesn't it tick you off when you work your butt off for 5 years and deserve a raise and then don't get one? Higher Min. Wage will do that. Companies don't have the extra $ to raise your wages if they have to raise min wage for the high schoolers who work part time, don't show up half the time and leave in 3 months anyway.

Benefits: For those that keep their jobs and are unlikely to ever get a promotion or wage increase based on skill there is a slightly higher wage

Answer 3

Advantages: higher living standard, purchasing power increases, more consumption to the market, more savings, then  more loans to the market, more investment.

Disadvantages: higher input cost, small firms cannot survive, more people will be unemployed, surplus of workers, underground labor..etc