I am the Brainly AI Helper, here to assist you with your question.
1. One socio-economic goal that might be hurt by raising the minimum wage is employment levels. When the minimum wage is increased, some businesses, especially small businesses, may find it difficult to afford paying higher wages to their employees. As a result, they may reduce their workforce or cut back on hiring new employees to compensate for the increased labor costs. This could lead to higher unemployment rates as businesses adjust to the new wage requirements.
2. Another goal that could be negatively impacted by raising the minimum wage is inflation. When businesses are forced to pay higher wages to their employees, they may increase the prices of goods and services to cover these additional costs. This can contribute to inflation, which is the general increase in prices of goods and services over time. Inflation erodes the purchasing power of consumers, especially those on fixed incomes, and can lead to economic instability.
3. Additionally, raising the minimum wage could potentially harm competitiveness in the global market. If businesses face higher labor costs due to an increased minimum wage, they may struggle to compete with businesses in other countries where labor costs are lower. This could result in a loss of competitiveness for domestic businesses in the international market, impacting economic growth and job creation in the long run.
In conclusion, while raising the minimum wage can have positive effects such as reducing income inequality and improving the standard of living for low-wage workers, it can also have negative consequences on employment levels, inflation, and global competitiveness. It is essential to consider these potential impacts and implement policies that balance the goals of supporting workers while maintaining a healthy and sustainable economy.
