Comment on the “Minimum Wage Debate”

https://blogs.ubc.ca/abondar/2014/11/05/minimum-wage-debate/

In this blog, the author hold the opinion that increasing the minimum wage can benifit locals. He argue that although increasing the minimum wage can cause for a lost in many jobs, it in fact, it weeds out many illegal immigrations. I agree that in some extent, it can weed out illegal immigrations, but it also affect many legal citizens who need these jobs to raise their family. After all, There is a large number of citizens that work in these low-paid locations.

I think that there are some disadvantages of increasing the minimum wage. If the increasing wages cannot lead to an increase in the efficiency of labour, the price of services and goods would increase at the same time. This will cause an inflation in the market. Another point is that when the companies decrease the number of people they hire, they have to increase the work intensity of the rest of the workers. So we cannot say that the wage of these workers rise essentialy. Finally, as the tax rate is high, increasing the minimum wage would not have too much influnce on those low income people’s life quality.

However, increasing minimum wage can promote the transformation and upgrading  of enterprises. Some labour-intensive enterprises disappear, others are forced to innovate and improve their efficiency.

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