For many years, most debates by the participants of the labor market focus on the effects of raising the national minimum wage in the field. Increasing the minimum wage has both advantages and disadvantages on the socioeconomic aspects of living standards. The variation of minimum wage affects employment levels, production, housing, monthly bills, and other luxuries. However, raising the minimum wage will either cause negative or positive impacts for each of these elements of living. The paper evaluates the impacts of increasing the national minimum wage on living standards and the national economy.
The paper's topic is intended to determine whether raising the national minimum wage for a country is harmful to the national economy. This is a complex topic to answer since it requires a thorough comparison of the benefits and the shortcomings of increasing the minimum wage for the economy. Since people experience different economic outcomes when the minimum wage is increased, we need to determine which group suffers the disadvantages the most. With a proper analysis of the outcomes of the minimum wage implementation, it is easy to address the topic question. The main aim of introducing a minimum wage in the economy is to raise people's standards of living by setting the lower limit of their salaries. Therefore, the positive outcomes of raising the minimum wage are more visible compared to the negative results. Although the negative results of increasing the national minimum wage are less visible, their impacts are felt more, and the failure of the country's economy can be noticed in a variety of ways. Therefore, the positive outcomes of minimum wage limits often cover the causes of a failing economy.
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The article by Corpuz (2021) analyzes both sides of raising the national minimum wage. The positive side of increasing minimum wage explains the steps involved to achieve economic growth by raising minimum wage limits. The direct impacts of the implementation are better salaries in the job market. With good salaries, many people will embrace the job market to increase labor sources and general employment creation and turnover reduction. With better salaries, workers will be able to clear off their debts and bills to enhance financial freedom and social interactions. Moreover, well-paid workers have the paper to access luxurious assets, including housing, vehicles, and clothing. Proper housing reduces the unnecessary street population. Besides, better wages ensure proper education for an individual and his/her family. All these benefits of increasing minimum wage limits help to evade poverty in society.
The article completely supports the argument's premises in terms of job growth and access to proper housing. The premises of the argument provides a strong support to the truth of the conclusion since they address the improved standards of living as the main objective of increasing minimum wages. Nevertheless, several premises are missing to complete the argument. Other premises that would enhance a whole argument are increased production costs, lowering the future of earnings, and the negative effects of employment. Although these missing premises are justified, their impacts on the economy are not realized directly; hence, many economists account for the premises whose direct impact is beneficial. Therefore, participants of the labor market require further debate to identify the deeper impacts of increasing the limits of minimum wages. There are numerous invisible negative impacts of raising minimum wages whose effects can only be realized at the final stages of a failing economy.
Argumentatively, increasing the minimum wages reduces the rates of employment. The national minimum wages increase the labor costs; hence, to sustain production, employers are forced to reduce employees, leading to higher unemployment rates and a high social class inequality gap. Besides the costs of the increased products, the national minimum wage reduces production, passed to buyers through higher prices of goods and services. Although the wage implementation increases expenditure for workers, it reduces demand for a specific group in the society, depressing production and investment. Among the main factors that influence investment is high production which ensures huge profits. However, with high labor costs and reduced production, there is limited profit return which discourages investors.
Besides paper qualifications, evidence is well appreciated in the job market. Research studies have shown that fresh teenagers from school express negative effects when exposed to increased minimum wages and earnings during practice. The transition from school to real-life practice demands skill acquisition, which should apply proportionally will salaries. Therefore, increasing the national minimum wages make young workers less skilled, reducing their future productivity and earnings. The article is more supportive of the missing premises rather than the provided premises. The truth of the conclusion lies in the argument provides on the premises. The missing premises and provided premises applied and supported alternatively between the two scholarly sources. The missing premises are more and express a deeper thought compared to the argument of the given premises. They focus on the real outcomes rather than the immediate lucrative outcome.
In conclusion, although increasing minimum wage limits has pros and cons, the cons are more severe and permanent than the positive impacts. Although raising the living standards is the primary aim of the implementation, the felt but invisible outcomes lowers the standards of living by increasing the gap of social inequality. Among the results of raising the minimum wages are reduced employment, low production and investment, and reduced youth performance and future earnings. Therefore, raising the national minimum wages is harmful to the economy.
References
Corpuz, V. (2021, March 31). Advantages and Disadvantages of Raising Federal Minimum Wage to $15 . Jackson Lewis. https://www.jacksonlewis.com/publication/advantages-and-disadvantages-raising-federal-minimum-wage-15#:%7E:text=Raising%20the%20federal%20minimum%20wage,payments%2C%20and%20other%20household%20expenses .
