The hot topic of today is about raising the Minimum Wage. The big wigs in the government are pushing this idea and many people think it is a good idea. We need to examine this idea.
If the government raises the Minimum Wage then it starts a line of change reactions. I will talk about some of them to you.
The people that earn Minimum Wage most likely are High School Students, College Students and people want part-time work.
The Minimum Wage jobs are the level one type of jobs in the company and it teaches job skills like good customer services, delivering results, manage money responsibly and to be a team player.
The next question in my head is this one. If the government gets in there and controls the Minimum Wage.
I have example one, the restaurant job where the profit level are not great. If you don't know. Restaurant only makes 5 in profit in every 100 dollar transactions.
If the government raises the wage of tipped workers 200% then what will happen to these types of jobs?
The owner of the restaurant will increase the price or hire less people.
The owner can't raise the price because if the food is too expensive, then no one would ever eat there.
The answer is this, they will have less people work there or reduce hours. Or the company will turn to self-service which makes less people working in the food joint.
Congressional Budget Office has reported Minimum Wage Hike might destroy 500,000 jobs.
https://www.prageru.com/courses/economics/how-does-minimum-wage-work
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