Higher wages boost economic growth  Employees work harder when they are paid more, but employers can often be more concerned with the short-term bottom line and will not treat workers in the lowest echelons of their firms with much consideration, viewing them instead as disposable and replaceable economic units. [1] Mandating a minimum wage can thus benefit firms, even if they do not recognize it, by making workers more productive and also fostering a general work ethic. [2] As workers feel more valued in the economic system, the more likely they are to work loyally and diligently for their employers. Furthermore, better pay means more disposable income in the hands of employees, which leads to greater demand by them for goods and services. This demand-induced economic growth is a very important part of economic growth. The more people are able to spend, the more money flows into the economy, leading to more business and higher employment. Without the minimum wage, a downward spiral of spending can ensue, proving deleterious to firms and the economy generally. Additionally, the minimum wage decreases expensive social welfare payments, since workers no longer need as many supplements to their wages from the state in order to make up for the shortfall created by too-low wages.  [1] Freeman, Minimum Wages – Again!, 1994  [2] Filion, EPI’s Minimum Wage Issue Guide, 2009