Hello there!
Cons of raising minimum wage:
- Lower chance of hiring
- More Layoffs
- Not a lot of cash flow for the company
One of the cons of raising the minimum wage is the lower chance of hiring in a company. Since the companies want to be stabled with the amount of employees they have, since a company is losing money whenever they pay an employee. They will be in need of saving money, so they would lower the amount of people they are going to hire.
Another con of raising the minimum wage is a company having more layoffs. What the word "layoff" means is a company temporarily or permanently removing an employee from their company. if the minimum age increased, the companies would have to layoff a couple of workers from their company because the company would be losing money, especially when they have a lot of employees. The rise of minimum wage would hurt a company financially.
Another con of raising the minimum wage is not a lot of cash flow for the company. What this means is that the company isn't receiving a lot of money back form the products or things that they're selling due to the fact that they have to use some of that money to pay employees if the minimum wage increased. This is bad for a company because they need to receive cash flow in order to keep their company up and selling their products, if they can't do that, the company could shut down for financial reasons.
To sum it all up, a raise in the minimum wage would hurt an economy because the prices in the economy would increase, like taxes, products, etc. Everything would be so expensive to the point where people are becoming broke, and can't pay for things. Companies, the government, and other people would be getting a back lash from this.
