Topic > Negative Effects of Raising the Minimum Wage - 1625
Lowering the minimum wage could help reduce production costs; therefore, more products will be created that will generate more revenue for businesses. Based on research conducted by the Seattle Income Inequality Advisory, an estimated 17.9% of restaurants would experience an increase in operating costs of 5% or more, as would 8.6% of retail establishments (Reich). Due to high wages, businesses will be forced to increase production costs to offset workers' expenses. Lowering the minimum wage could help solve this problem because businesses will spend less money on employees and production costs would remain the same
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