Is raising the minimum wage good for business?

Most people agree raising the minimum wage is fantastic for the economy.  It puts money in your pockets, therefore having you to spend more by contributing to the economy.  However, most companies disagree with government regulations to increase wages because it hurts their business.  Here’s an interesting video clip with John Stossel discussing the subject of wages with a restaurant owner.

In most cases the owner makes some sense on paying a worker that is not skilled enough the minimum wage because he or she has not gained the skills to be paid high enough.  I believe the employer should have the opportunity to pay the desired wage to a person if they deserve it.  In this discussion the employer allowed his employees to work his way up to higher pay by having more responsibilities and time put in over the years.  I also believe employers should train their workers in other areas, so they can gain techniques in the work place.  In other words, the owner wouldn’t need to higher another person that know nothing about the company, so that same worker would already have knowledge of several aspects of the field and that person would run things proficiently.  You wouldn’t pay a teenager higher wages for just cashiering and maintenance, but if he knows more area of the business he deserves more.  Having the employer to control his business in all aspects allows his company to grow successfully.

This subject was an eye opener for me because I always thought everyone was deserving of a descent wage in order to afford things in life.  But, if you got only fast food knowledge and no other skills or training then it’s not fair to other employees that have the qualifications.  It makes the wages decrease in other highly qualified positions and probably that’s why we have a troubled economic system today.  It’s not necessary for government to get involved in this area because it just causes financial ruin to business owners and prevents them from succeeding.


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