What are the positions on a minimum wage?

Minimum wages reduce the costs of social programs

Question: What are the positions on a minimum wage?
Position‹3 of 5›: The minimum wage reduces government spending
Argument‹2 of 2: Minimum wages reduce the costs of social programs

Governments can reduce spending on social programs as the private sector pays low-earners a higher wage.

The argument

If workers are paid a reasonable living wage there will be a reduced need for social programs to help low-income people. This means government spending can be reduced on safety nets and can be redirected to other areas. A large portion of low-income workers receives federal funding through social welfare programs. They need this support to supplement their job earnings since the minimum wage is not enough to support them or their families. If the minimum wage were enough to support low wage earners financially, they would not need to rely on this governmental assistance. Minimum wages that are effective and high enough to support living costs reduce the number of people who need to rely on social welfare programs, therefore saving the government money that can then be invested in other beneficial ways.

Context

A large part of the government's budget is spent on social programs providing support for those who financially struggle.

Premises

[P1]Many low-income workers rely on government welfare to supplement wages that are too low to live on. [P2] A minimum wage high enough to cover living costs would reduce their need for that assistance. [P3] Fewer people on welfare means the government saves money it can redirect elsewhere. [C] Therefore, because it reduces the cost of social programs, the minimum wage reduces government spending.

Counter-arguments

Introducing or raising a minimum wage would also increase unemployment and inflation. This would raise government spending on safety nets as a larger share of the population entered unemployment and purchasing power declined.

Rejecting the premises

[Rejecting P2] Minimum wages increase unemployment and inflation, doing little to improve poverty rates.