· Less money for businessowners

· Inflation of products
· Making companies less competitive
·
· Job loss because companies may not have enough to pay all
· https://www.investopedia.com/articles/markets-economy/090516/what-
are-pros-and-cons-raising-minimum-wage.asp#:~:text=Opponents
%20of%20raising%20the%20minimum,and%20result%20in%20job
%20losses.
· Living wages could hurt the economy and force corporations to reduce
hirings
· Living wages could lead to businesses raising their prices, causing inflation
· It could have little effect on reducing poverty
· It could hurt low-skilled workers
· It would result in Job-loss
https://www.lendingtree.com/business/minimum-wage-increase-effects/
 Increase labor costs
 Reduces employment
 Reduces the value of lower-skill or inexperienced workers
https://sites.lsa.umich.edu/mje/2023/03/10/opinion-the-case-for-abolishing-
the-federal-minimum-wage/
 The historical reason comes from a desire to end sweated labor


Argument 1 (Ansh):
We should not increase the minimum wage to a living wage for many
reasons. First, it increases labor costs, if congress passes the Raise the Wage
Act of 2023, employers will be responsible for raising wages beyond just
those employees making $7.25. Every employee making between $7.25 and
$17 will experience raises until their wages meet the new federal minimum.
Certain industries may have difficulty accommodating the federal minimum
wage increase like restaurants which typically operate at an average profit
margin of 3% to 9%. So, with an increase in wages, industries making low
profit margins will have to compensate for increased labor costs which could
drive companies out of business. Secondly, a living wage reduces
employment. Increased labor costs and slim profit margins may force
business owners to cut their staff. According to a Congressional Budget Office
nonpartisan analysis of the Raise the Wage Act, it was projected that raising
the minimum wage might raise the income of many low-wage workers but
could cause other low-wage workers to lose their jobs. Smal business loans
may offer temporary financial relief to employers struggling to meet payroll
obligations. But in the worst case, businesses that can’t accommodate rising
labor costs may need to shut down. Third, implementing a living wage
reduces the value of lower-skill or inexperienced workers. Increasing the
minimum wage could diminish the value of hiring an inexperienced worker,
as businesses may find it more cost-effective to hire a higher-paid,
experienced worker or invest in automation. Younger workers, like teenagers,
would have less opportunities to learn fundamental skills, such as teamwork
and punctuality, that help advance their careers. Giving younger Americans
fewer opportunities for working a part-time or summer job could lead to
serious workforce challenges in the future, in fact, 45% of minimum wage
workers are 25 or less which means that this group of people being affected
is not a small demographic. Finally, evidence suggests that minimum wage
increases don’t reduce poverty. In the previous federal minimum wage
increase from $5.15 to $7.25, only 15 percent of the workers who were
expected to gain from it lived in poor households. According to a 2012 review
by Mark Wilson, if the minimum wage were today raised, only 11 percent of
workers who would gain would live in poor households. The 2012 Wilson
review noted: “Since 1995, eight studies have examined the income and
poverty effects of wage increases, and all but one have found that past
minimum wage hikes had no effect on poverty.” So, in conclusion, we should
not increase the minimum wage to a living wage because it increases labor
costs, it reduces employment, it reduces the value of lower-skilled or
inexperienced workers, and no evidence suggests that increases reduce
poverty.

Argument 2 (Amrita):
https://www.cato.org/sites/cato.org/files/four_reasons_not_to_raise_t
he_minimum_wage.pdf
While increasing minimum wage is popular among the public, it will have a very negative impact
on the people it tries to protect, on small businesses and the overall US economy. So, I am here to
argue that a minimum wage should not be required by law
Let us look at a few reasons why the minimum wage is a bad idea.
First, a minimum wage forces businesses to pay all its employees higher wages, increasing their
operating costs. These businesses will then be forced to hire fewer people, reduce working hours
or lay off some of their employees to remain profitable. In fact, a study by the Congressional
Budget Office (CBO) predicts that a $15 Minimum Wage will lead to loss of 1.6 Million jobs by
2027. So while some of the employees will earn more money from a minimum wage, others,
especially the lower skilled employees will likely be laid off and earn no money. Companies may
also resort to cutting benefits such as medical insurance or retirement contributions to reduce
their costs, depriving their employees of important benefits. So clearly, in the long run minimum
wage does more harm than good to employees.
Secondly, increased operating costs may turn companies unprofitable and in some cases they may
go bankrupt. Increased costs due to minimum wage may make American Companies less
competitive against companies from other countries that do not have minimum wage. When
companies go out of business, it is the workers who suffer. On the other hand, abolishing
minimum wage will lower costs for small businesses, allow them to grow, expand employment,
and even lower prices to consumers that will boost the standard of living among the poor. So it is
clear that business will suffer from increased minimum wage and will do very well if we
eliminate the minimum wage.
Thirdly, minimum wages will be absolutely devastating for the overall economy. When wages
increase, companies will likely have to increase prices to the consumers. Increased prices will
lead to inflation that will make products less affordable to the poor people. Increased inflation
will also stop our economy from growing, cause companies to fail and lead to job losses. So
minimum wage will be detrimental to the overall economy.
Next, the value of minimum wage is hugely exaggerated. According to the Bureau of Labor
Statistics, only 1.4% of the population earn minimum wage or less. Among them 44% are low
skilled workers under the age of 25 who will be laid off when companies cut costs or use
automation. So the minimum wage does very little to reduce poverty. On the other hand, as we
had observed, it can have a big negative impact on employees, businesses and the economy. So
there is no justification for minimum wage.
Finally, there are better approaches already in place to help the poor employees. For instance, in a
research paper published on IZA.org, earned income tax credits were shown to be very effective
in reducing poverty and in encouraging more employment. And another measure that has shown
promise in experiments is in allowing companies to hire young unskilled employees at below
minimum wage. This will encourage companies to hire and train the unemployed youth and allow
them to earn more over time as they build skills.
 >>>>>
I want to conclude by stating some facts from a survey by NFIB Research Center. If a $15 federal
Minimum wage was mandated, 74% of small businesses believe they will be negatively
impacted. 89% said they will have less profits. 58% said they will layoff employees. 60% would
reduce employee hours and 87% will increase prices.
In effect, a $15 minimum wage will reduce employment while at the same time raising prices.
Clearly our country cannot afford that. So let us abolish the minimum wage

Argument 3 (Ansh):
· Less money for businessowners
· Inflation of products
· Making companies less competitive
·
· Job loss because companies may not have enough to pay all
· https://www.investopedia.com/articles/markets-economy/090516/what-
are-pros-and-cons-raising-minimum-wage.asp#:~:text=Opponents
%20of%20raising%20the%20minimum,and%20result%20in%20job
%20losses.
· Living wages could hurt the economy and force corporations to reduce
hirings
· Living wages could lead to businesses raising their prices, causing inflation
· It could have little effect on reducing poverty
· It could hurt low-skilled workers
· It would result in Job-loss
https://www.lendingtree.com/business/minimum-wage-increase-effects/
 Increase labor costs
 Reduces employment
 Reduces the value of lower-skill or inexperienced workers
Argument 4 (Amrita):
The other team said that minimum wage will improve standard of
living. The CBD study that indicated 900,000 people would be lifted
from poverty also said 1.6 million people will lose their jobs - meaning
will earn no money. Additionally with minimum wage, businesses will
make their products more expensive to consumers. So the combination
of increased unemployment and higher prices will make the standard of
living much worse not better.

The other team also mentioned that minimum wage will increase the morale and the
commitment of employees. This is absolutely not true. First, seeing a lot of your
coworkers laid off due to minimum wage will be bad for employee morale. Also, when
companies cut benefits like medical and retirement due to increased minimum wage, the
moral will only get worse. So minimum wage is actually bad for employee morale.