Write if you agree or disagree and why Essay Example | Topics and Well Written Essays - 750 words

Write if you agree or disagree and why - Essay Example It may seem that companies are reluctant to raise wages because they are trying to protect their interests. However, when one looks at the matter critically, one will discover that an increase in the minimum wage has adverse impacts on the workers. Employers will increase the wages of their workers through increasing the prices of the goods they sell. For example, a retail shop will increase the prices of their goods, which are necessities, to cater for the government’s requirement. The changes in the consumer goods will fall hard on the individuals living below the poverty level because they will have to pay more for such goods (Macurdy n.pag). The government will have increased their purchasing power but also caused them to spend more on their consumptions. They do not benefit because the extra money they have earned goes straight to the profits of their employers. They might have to spend more because the minimal wage bill affects various sphere of the economy. Companies do not only hike prices to meet their profit objectives. They may also lay off workers. The low earners will be forced to look for jobs elsewhere (Macurdy n.pag). This increases in the burden of social workers who have to provide benefits for the unemployed. The law will increase the rate of unemployment, a state that brings with its problems. Employees will have to lose the salary that has helped them survive in the severe economy. The workers who will be retained will be forced to do a lot more for a marginal increase in their salaries. The retrenched workers will have left a gap that can only be filled with the remaining workers. They will be willing to take up the extra work because they will be too grateful to have retained their jobs. However, they will be under strenuous conditions that will reduce their job satisfaction. An increase in salaries will cause the low-income earner lose out on social benefits such as food stamps and subsidised housing charges. A