Is Raising Minimum Wage Really a Good Idea?
The majority of people in Canada and the United States are lower to middle class in terms of socio-economic status, and there are a lot of people who are advocating for the raise of minimum wage, which is probably well deserved. The only problem that a lot of people overlook is that if employers have to pay each employee more money, they will reduce the number of employees. So, some people will be better off, but a lot of people will become jobless. Perhaps this idea is not in the best interest of workers.
Workers at fast food restaurants want their wage essentially doubled, from $7.50 an hour to $15.00 an hour (in the United States). What effect will this have on the workers? Is double wage really required for a minimum living? What constitutes minimum living - is it subjective to each person, or is there a set minimum?
If a company currently has ”x” employees and the minimum wage increases by 1.5 times, what percentage of jobs will be lost assuming that the CEO will continue paying the same total amount for salaries?