Raising the minimum wage will spur job growth and improve the economy by increasing household spending by $48B (ProCon.org, 2020).
Increasing the wage would reduce rates of poverty.
It would decrease government spending because low-income earners will stop depending on the government.
It would reduce income inequality
Raising the minimum wage will increase unemployment rates because organizations will reduce hiring.
It will increase poverty. The higher the wages, the higher the production cost, resulting in higher prices of products, leading to the high cost of living and poverty.
It would force companies to close, increasing overdependence on government welfare
The low-skilled workers would be disadvantaged, leading to income inequality.
I would be against raising the minimum wage due to several reasons, as presented in the chart. Firstly, if employees demand higher pay, companies may afford to pay all of them. It may hence, force the companies to reduce the number of employees so that they meet the demands of the higher pay. Secondly, the more a company spends, the higher it raises the prices of goods and services. This means customers will spend more, which may drain their money, leading to poverty. Consequently, when the prices of products rise, the cost of living will be too high, and people will depend on the government for help. Therefore, the minimum wage should not be raised as it will cause more disadvantages than advantages.
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The product presented on Shark Tank was a 2 in 1 hero hoodie that gave rise to Quickflip Apparel Company. The product is basically an ordinary hoodie that can easily be transformed into a backpack bag within one minute. The main problem that the product solves is to relieve people of the burden of carrying the hoodie on their shoulders when the sun gets too hot. Also, people can use it both as a sweater and as a bag. The business pitch was presented by Rener Gracie, the CEO of Quickflip Apparel. Current customers are people who like adventure on hot days and everyone who wears hoodies. The business was started in 2018 and doing pretty well. In less than twelve months, it had expanded incredibly.
The pitch got some offers from the sharks (Keiro, 2019). Kevin offered 100k+$400k as a line of credit, which equals 25% of the stake. Robert offered $500k for a 25% stake, Lori offered $500k for a 15% stake and a contingent on a patent approval. She later divided it to $250k + $250k as a credit line for a 10% stake. In the end, Rener took Lori’s offer. My thoughts and opinions are that the product is excellent, and I would invest in it. I agree with the sharks because Rener has first to market the product; otherwise, people will think of another hoodie. If I were the business owner, I would not sell the product at a higher price; I would first introduce it to the market at a low price to build its reputation.
One opportunity cost decision I made was to go out with my friends rather than doing extra hours at my job. In return, I lost money but strengthened my relationships with friends. I am on how I spent my time with them because we shared knowledge of life that I could not have known. Another opportunity cost is foregoing a paid function in an event to volunteer in a children’s home. My opportunity cost was the money I could have earned from that event. However, I was happy with how I spent time at the children’s home as I impacted their life positively. Lastly, I decided to buy a pair of shoes with the money I was to use for my birthday. I lost the opportunity to celebrate my birthday with friends. I was not happy because a birthday is meant for celebrations, which I did not.
Keiro. (2019). Shark Tank Best Pitch Ever – Hoodie Backpack by Quikflip Apparel w/ Rener Gracie (Part 4/5) [Video]. Retrieved 27 February 2021, from https://youtu.be/daqEOY5G6TM.
ProCon.org. (2020). Minimum Wage – Pros & Cons – ProCon.org. Minimum Wage. Retrieved 27 February 2021, from https://minimum-wage.procon.org/.