Minimum Wage Decrease?

One of the first items on agenda of the new Congress was the proposal for an increase in the federal minimum wage. Minimum wage is the lowest hourly, daily, or monthly wage that employers may legally pay to employees or workers. This was first introduced in the United States in 1938, and to this day it plays an important role in our economy. A minimum wage provides the less fortunate workers with a salary to afford basic necessities. In order to interpret whether or not Congress is making a right or wrong decision, it's essential to understand the advantages and disadvantages of using a minimum wage, as well as the effects of altering it.

Supporters of the minimum wage claim that having a minimum wage increases the average standard of living and helps prevent exploitation. By using a minimum wage, there will be more incentive to work. For the economy, giving more money to the low-income people living on minimum wage will increase consumption and put more money into the economy. For businesses, work ethic is usually a benefit, because employees are expected to work for what they are being paid for. ("Minimum Wage," Wikipedia: The Free Encyclopedia)

People against the minimum wage feel that its use will create an overall decrease in the demand for workers. In result, they feel that unemployment will increase. To business owners, a minimum wage would cause them to have to pay their employees more, which in effect may decrease their overall profit. In addition, a minimum wage may encourage some to enter the job market rather than pursuing further education. ("Minimum Wage," Wikipedia: The Free Encyclopedia)

Personally, I feel that minimum wage should not be increased and maybe even one day done away with. An increase in the minimum wage will increase the unemployment rate. There are many people in this country who are perfectly fine with working below minimum wage. I feel that some people do not have the talent and work ethic to earn a minimum wage. I believe it is all about determination when trying to earn a decent salary in the work field, there should not be a minimum that everyone gets. Take two workers for example earning minimum wage, "A" and "B": Worker "A" works hard everyday, never slacks or looks for the easy way out. All of the other workers really respect him. Worker "B" on the other hand works at a slow pace, doesn't work efficiently and to his best ability, always shows up late, etc. Does Worker "B" deserve the same salary as Worker "A"? I don't think so. Either Worker "A" needs to be paid more for his excellent work ethic, or Worker "B" needs a pay cut below the minimum wage.

There are many illegal immigrants in this country who earn below minimum wage, and are perfectly willing to. This can be very advantageous for businesses who cannot afford paying out a lot of money out to its employees. Due to the high standard of living in this country, I feel that this is perfectly acceptable as long as the employees are happy. In relation to the economy, unemployment is a downfall to it. If businesses are saving money and are not shelling out money to meet a minimum wage standard, then business will prosper and the economy will grow.

In conclusion, whether or not you think you support an increase/decrease in minimum wage, it's essential to understand what the advantages and disadvantages of it are, as well as how it will affect the economy.