Increasing employee morale could easily translate into more tangible benefits, such as increased employee retention and reduced hiring and training costs.
Employees who are more inclined to stay with a company longer could benefit from greater advancement, and from an overall reduction in job-related relocation expenses.
Many economists and business executives who point out that labor is a major cost of doing business argue that businesses will be forced to cut jobs to maintain profitability.
The 2013 CBO report estimates that raising the minimum wage to $10.10 an hour would result in the loss of approximately 500,000 jobs.
A boost to economic growth is another potential advantage of increasing the minimum wage, as consumer spending typically increases with increases in wages.
A higher minimum wage would put more discretionary dollars in the pockets of millions of workers, money that would then flow to retailers and other businesses.Among the disadvantages of increasing the minimum wage is the probable consequence of businesses increasing prices, thus fueling inflation.Opponents of an increase argue that raising the minimum wage would likely result in wages and salaries increasing across the board, thereby substantially increasing operating expenses for companies that would then increase the prices of products and services to cover their increased labor costs.By increasing the minimum wage by almost three dollars more an hour, these workers would better be able to support themselves and their families.A second benefit, to raising the minimum wage, is not only will it raise many low wage workers out of poverty, but will help the overall economy.Naturally, the more money workers earn through wages, the more they have to spend as consumers.Thus, those higher wages will be passed on through greater levels of spending power.Some proponents of raising the minimum wage estimate a much larger number of individuals and families escaping poverty.A related potential benefit is a projected reduction in the need for federal and state government expenditures on financial aid for poor and low-income individuals.The primary argument advanced in favor of raising the minimum wage is that it would improve the overall standard of living for minimum wage workers by providing them with a more appropriate income level to handle cost of living increases.A 2013 Congressional Budget Office (CBO) report projected significant standard of living benefits for 16-17 million workers, assuming a minimum hourly wage of .10, including an estimated 900,000 people being elevated above the poverty line.