Why Increase in Minimum Wage Does Not Lead to Loss of Jobs

The issue of the minimum wage is a huge debate in the country today that has brought some major differences between parties, employees, and companies. It is something that becomes an issue every time there is new leadership in Senate and in the country at large with the hope that companies will have to squeeze some few dollars and give them to their employees. However, the issue has now turned into a huge political problem that is affecting the country.

Politics and Minimum Wage

The previous administration did not pay huge attention to the issue of minimum wage and increasing the amount of money that employees were getting. It is obvious to most individuals that most of the business strategies that were introduced by the previous administration favored business owners. That is why everything to do with increasing minimum wage was not considered and was mostly thrown out of the Senate without further discussions.

However, there have been reports that the current administration is focused on making true its promise of ensuring that the $15/hr minimum wage has been introduced in the country. This is something that has sent chills down the spines of very many business owners who are currently struggling to raise sufficient amounts of funds to keep their businesses operational. These organizations have had one of the toughest years in their operations, and forcing them to pay additional money creates a perception that the current administration is not taking care of businesses.

Increase in Wages and Loss of Jobs

The current strategy that is being used by most of the leading companies in the country is that an increase in the minimum wage will have a direct impact on the jobs available in the country. Most of the companies cannot be able to handle the high labor expenses, which means that they will have to release some employees so that they can have a small number of workers that they can pay the amount that is currently demanded.

However, all the research studies that have been conducted in this area indicate that an increase in minimum wage does not correspond to a loss of jobs in most companies. A recent study indicated that when most of the leading organizations increase their wages, most of the startup companies around them increase wages, and they do not release some of the workers. This means that it is possible for organizations to increase wages without negative impacts.

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