The Effects of Minimum Wage on Employment - Essay Example

I do not believe that the federal minimum wage should be increased. The reason being, rising wages will lead to massive unemployment. A lot of people will lose their jobs in order to cater for increments in wages.

It could as well lead to replacing of employees with computers. Loss of jobs does not go hand in hand with employment law that states that employees should not be terminated without a reasonable cause. When people lose their jobs, it means that they will live below the poverty line. The government therefore will not have attained its objective of poverty reduction because as others earn more, others lose. Another reason why the minimum wage should not be raised is that low-wage workers will lack the incentive to educate themselves further.

When workers are paid more, they will lack the motivation to enroll in colleges and further their education. It, therefore, means that workers will get stuck in their jobs for longer periods instead of moving to other rewarding jobs. The overall effect will be that the country’s education level will below.