I think a big misconception is that minimum wage helps the very poor because it forces businesses to pay a minimum wage per hour for employees. I guess the way that some people see it, it is to keep the way employees are treated fair and ensure that the very poor aren't being paid $1.00/hour.
Well I'm here to argue that eliminating the minimum wage altogether would help the very poor. At the very least it would cause the unemployment rate to drop. Companies would be able to hire employees for let's say $5/hour to do a job that brings them in approximately the same amount of money. Instead, with a minimum wage, they are paying employees $7.25/hour for work that is worth $5/hour. This forces businesses to make cuts to their workforce because they can't afford to hire enough people at $7.25/hour when they're only bringing in about $5/hour for every employee they have hired at that wage.
Now, in our country there is a federal minimum wage and states set their own minimum wage as well. I'm not looking at this from a political perspective, moreo from an economic perspective.
From an economic perspective, eliminating the minimum wage allows businesses to hire more employees and overall helps the very poor stay employed. Keeping the minimum wage causes the unemployment rate to rise and is detrimental to the very poor. True or false? Agree or disagree?