Final answer:
Discussing the pros and cons of minimum wage involves analyzing societal benefits and costs. Increasing minimum wage may lead to poverty reduction, yet could result in job losses, especially affecting low-wage workers supporting their families. It is a complex issue needing consideration of both economic and social implications.
Step-by-step explanation:
When discussing the pros and cons of minimum wage, it is vital to acknowledge that this is a complex issue with no clear-cut answers. If we consider a scenario where 98% of minimum wage workers receive a 10% pay increase, we must also recognize the potential consequences, such as 2% of minimum wage workers losing their jobs. This trade-off leads to a difficult evaluation of whether the gains for society outweigh the losses.
Those supporting a minimum wage increase argue that it can help in alleviating poverty and reducing income inequality, as more workers receive a livable wage. However, opponents point out that a higher minimum wage may lead to job losses as employers may not be able to afford the increased labor costs, potentially impacting low-wage workers the hardest — particularly if they are responsible for supporting families.
The ultimate question is whether the societal benefits, such as increased earnings for the majority, are greater than the societal costs, like job losses among a minority. Yet, this depends on who is affected most by these job losses. For instance, the impact is different if the jobs lost are crucial for families' survival, as opposed to being secondary income for high school students during summer.