We are talking about basic economic theory, such as supply and demand. Having gone through Micro and Macro economics previously it was a bit of a review as we discussed different factors affecting the demand and supply for a particular product. This segwayed into the prompt for our current paper, A Rise in the Minimum Wage.
The argument is, that raising the minimum wage over the equilibrium will lower demand for jobs while raising the supply of workers willing to work at said wage. This is known as a price floor, often seen in other policies to stabilize prices. Furthermore, employee benefits could potentially be cut back to save costs, a likely scenario as employee turnover across the board has been on the rise in the last couple decades. This has resulted in a lack in employee pension and benefits, something that could be exemplified by this situation.
On the opposing side, rising the minimum wage will help lift low skill workers out of poverty. Looking at past trends, every time the minimum wage has been increased, job growth had continued to increase. This negates the argument that workers will be laid off and unemployment will rise. Furthermore, if employers are paying their workers more, it will result in decreased reliance on government assistance through transfer payments, saving taxpayers money and encouraging strong work ethic.