A viewer asked this question on 3/30/2000:
Do you think that the nations CEO's rate the salaries, option & benefits they currently get?
What are the pro's & con's of raising the minimum wage?
JesseGordon gave this response on 4/20/2000:
Mr. Burrow's answer was correct but partisan -- you asked for the pro's and con's so here they are:
FROM THE LOW-WAGE WORKER'S PERSPECTIVE:
Pro's: If you currently hold a minimum-wage job, raising the minimum wage raises YOUR wages directly.
Con's: If you don't currently hold a minimum-wage job, but that's the sort of job you are qualified for, you are less likely to get a job the higher the minimum wage.
Result: From a low-wage worker's perspective, minimum wage increases tend to decrease job mobility.
FROM THE LOW-WAGE EMPLOYER'S PERSPECTIVE:
Pro's: About the only good thing an employer might say is that their employees are happier getting a raise in their minimum wages. But the employer could have done that without a law, and undoubtedly the employees would resent that their employer waited until the law required a raise.
Con's: Costs increase, which means the costs are passed onto the employer's customers. Or, if the company is competing with countries without a minimum wage increase, the company's products or service become less competitive.
Results: From a low-wage employer's perspective, minimum wage increases tend to transfer jobs overseas. If the company competes only with other US companies (like local services), there is no net effect on competitiveness because the other companies must pay the increase also.