Minimum Wage Legislation

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high,
therefore there is a surplus of unskilled workers in the job market. The effect
of a surplus drives down an individuals reservation wage, as they are willing to
do and take anything for work. Minimum wage only makes this fact more severe, as
it increases the supply of workers.

Minimum wage increases the cost of doing business, and unfortunately in today's
economic conditions employers are not able to pass on the extra costs to the
consumer. Minimum wage is not helping workers, it is hurting businesses, and to
maintain any profit, and follow legislation companies have to cut labour costs
somehow. Companies are being forced to take other alternatives because of higher
labour costs for unskilled workers. Businesses are forced to:

1. Cut back current employees hours
2. Not hire any more employees
3. Let employees go

As you can see the reactions to minimum wage actually decrease opportunities for
the "unskilled" workers, instead of providing them. With any change in ...

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