Money, The backbone of society. More Specifically, the minimum wage. Many Adults working at minimum wage jobs and they demand higher wages. Is it a good idea? In my eyes, I don’t think that’s good idea. It could cause an increase in unemployment, price Increases, and small franchises and small new businesses could collapse.
A sudden increase in the minimum wage is a Job Killer. Raising the minimum wage to 15 dollars for a team of workers per hour is very hard to maintain on top of running a business. To compensate for this, Workers need to be fired or have their hours reduced to keep a profit margin or just stay afloat. On Top of that, minimum wage Workers are adult desperate for higher paying jobs which can lead to many people broke and could potentially affect future generations. An article by The New American titled More Proof: Raising the Minimum Wage increase unemployment increase unemployment, where in California an entire company was forced to move to another state to because of the wage change.
If they can’t afford to cut their workforce, they have to raise their prices. Many businesses will have to pay things Such as Bills, Stocks, Utilities, Employees and etc. Without these essential items, a business will unable to sustain it-self, forcing them to raise their prices. The increased prices will be unappealing to consumers, which is very detrimental to a business, especially new ones.
It’s hard to run a popular food chain under the minimum wage change, now imagine holding a small business under the minimum wage change. These Businesses tend to have low profit margins due to competitions to other franchises and other business are barely can pay their workers with any money left over. This is an absolute business killer and is counterproductive. In the city of Houston, Where I live currently, there are hundreds of restaurants from around the world. They would all fall because of the raise.
I See where the other side is coming from, they want raise many Adults from these jobs to fix their lives and overall help forward our economy. But raising the minimum Wage is not the answer. It causes massive unemployment and hours cut, Increases prices so businesses won't sink, and small business and franchises could easily go out of business. A Solution to this is to let the free market manage itself, and kick start new businesses in the market.