BA 325 week 7 Discussion Effects of raising minimum wage in American labor force

Effects of raising minimum wage in American labor force




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Raising the minimum wage to $15 per hour would impact not only the American labor force but also the workforce. The employee’s living standards would be uplifted through the increment of the minimum wage. There are also other impacts brought about by raising minimum wage whereby the price of every commodity would be increased increasing food in restaurants in order to be able to pay for the employees. The research has shown that, raising the minimum wages to $15 per hour would affect all businesses whereby some managers and business owners may prefer business cut off in order to pay their employees more. The workers would be reduced or retrenched from their working areas so that the business may retain only the employees they can be able to pay at high rate. American labor force would be really affected by raising the minimum wage by far whereby many companies and organizations would be closed or remain stunted because of the high pay for the employees. This would in turn affect the American’s economy at large because of poor productivity from the business sectors (DiNardo, Fortin, & Lemieux, 2010).

In conclusion, it is important not to look on the money put on the employee’s pockets but the impacts of raising the minimum wage. Rising of minimum wage may lead to unemployment whereby the organization is unable to pay large number of workers at high rate.The government should put a standard minimum wage which can be affordable to all the organization and which can also cater for the employee’s needs. Making these considerations, the government should have an insight of the future impacts of the decisions made of raising the minimum wage (DiNardo, Fortin, & Lemieux, 2010).. The impacts are not only affecting the American labor force but all the economy and all business sectors in the state.


DiNardo, J., Fortin, N. M., & Lemieux, T. (2010). Labor market institutions and the distribution of wages, 1973-1992: A semiparametric approach (No. w5093). National bureau of economic research.

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