By: Daniel Buckley 

Recently it has been suggested by politicians that the minimum wage should be increased. It can be thoroughly debated about the amount of increase or if there should be any at all. I myself believe that there should be little or no increase. The reason for this is because people who work for minimum wage are uneducated, unskilled and generally manual laborers.

The effects of a minimum wage increase would mostly effect small businesses, businesses that cannot sustain such increases. Capitalist economies work on the basis of supply and demand. Why is it that people who work for minimum wage deserve any increase at all? Their production will not increase, their output will not increase nor will the quality of their product.

The only effect of a minimum wage increase is the downfall of small businesses. This will result in higher unemployment which will result in higher social program expenditures (ie: welfare).

Simple economics work on wages as well as products. The basis and ground rule of economics as taught in all educational programs is as follows: as supply increases demand decreases, as demand increases supply decreases. Therefore, if wages go up then the number of jobs go down. An explanation or solution how this would not occur is most certainly welcome.

Can small businesses, the foundation of our economy afford such expenditures? if you answer yes, how? Higher taxes, more social spending, higher unemployment? I believe in no increase. However if such increase must occur, it must occur in as minimal amount as possible, less that twenty five cents per hour.

Comments welcome