Many people cringe at the thought of abolishing the minimum wage, but government standards for specified payment by employers has left hordes of people unemployed, says critics of minimum wage laws.
Here are four major benefits that would result by abolishing the minimum wage, according to proponents:
1. According to an article published in Forbes, Don Watkins
suggests more jobs would be available without a minimum wage. Yes, many of them would be at a lower wage, but young people starting out in the job market would learn useful skills, make workplace connections and begin to build up their resumes.
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Watkins noted that internship programs with low or no pay often get inexperienced workers into the door of a potential career. A minimum wage forces companies to limit the number of employees, especially when the wage is raised through a government mandate. Watkins added that "a low-paying job can be the best path to a high-paying job."
It would be good for business and workers. Businesses, especially small businesses, have to watch their budgets carefully. Even if they want to hire more employees to improve or expand their business, the minimum wage puts restrictions on their plans.
The ability to provide more entry-level jobs at lower pay can make a small business thrive, leading to more productive businesses and more hiring of employees.
Successful businesses would proliferate in a free-market economy, which also helps consumers with more choices and better prices.
Lower-paid employees would soon develop skills to find higher-paying jobs among the increasing number of businesses.
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Abolishing the minimum wage would reduce poverty. Young, inexperienced people would be attracted to the workplace, understanding the importance of jobs, with the addition of more low-paying, entry-level jobs. Many young people would avoid the trap of government dependence and become involved in the work environment, learning first-hand how to improve their lives.
A simple raise in the minimum wage affects all employees, potential employees and businesses. Geoffrey Pike of Wealth Daily pointed out a study by the Congressional Budget Office
, which stated a raise in the minimum wage would result in the loss of nearly 500,000 by late 2016. This could lead to even greater poverty.
Those lost jobs would include the young people caught in the ongoing cycle of no work, no pay, and a life of poverty because they can’t get started in the workplace.
Self-worth of people would improve when the minimum wage is abolished and there is more emphasis on jobs. According to The Huffington Post
, U.S. Sen. Lamar Alexander of Tennessee said he does not believe in the minimum wage during a Congressional hearing
Sen. Alexander says if government is interested in "social justice," it should find ways to get people off welfare and into the workplace. As workers begin their climb up the ladder on a lower rung, they would realize their value and worth as individuals.
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