Over the past few years, Congress members have proposed raising the minimum price from 7.25 to 12$ per hour by 2020. It has been proposed to lower the poverty level, and better the consumer economy. Though this policy might sound ideal, there are multiple drawbacks that should be addressed. Raising the minimum wage would increase inflation, decrease employment, and could have a negative impact on small businesses.
A higher minimum wage can cause an increase in wages as well as an increase in inflation. In order to afford their expensive employees, businesses, especially small ones, will need to raise their prices. In exchange for more income, the employees will receive fewer benefits and less hours. Unskilled workers, who lack a college or trade education, will be less employable due to the fact businesses will prefer more skilled workers for that money.
Our minimum wage, $7.25 per hour, is not intended to make a living off of, let alone support a family. Its intention is to give people experience for their later careers, unskilled workers, or people just looking for something to pass more time. Unskilled workers should not be paid at the same rate as trained, skilled workers. Raising the minimum wage would require employers to raise their rates and as a result make a more difficult job worth it, running them out of money. Currently, there is no maximum amount of tip a server can earn, however, if the minimum is raised, there will be a $3.02 maximum. The federal minimum wage is set at $7.25 per hour, however, states such as Colorado set their minimum wage at a higher rate, such as $8.31 per hour. Nevertheless, only 3% of Coloradans actually earn minimum wage. Most workers earn over minimum wage, but servers who earn tip get below minimum wage with the tip raising making it at or above minimum wage.
This is a problem that needs to be addressed. It is very difficult to raise a family off of minimum wage and stay out of debt, yet many families do. However, increasing the minimum wage is not the solution. Getting a college education, or attending a trading school should be more affordable. Making community colleges free would be both beneficial, and have some drawbacks. Since a student’s education is free, they would be required to make a plan and a schedule to keep them on task, and eventually allow them to graduate. They would be required to maintain a certain GPA, and have a solid plan for their next four years. Trade schools should also be made more available, they should be more affordable and easier to join. For example, my cousin has applied to join an electrician trade school, and after two years is still waiting for entry. He has moved in with his parents and is working hard to attend that trade school, and start a life on his own, yet earning minimum wage and being on a two year waiting list has made him restless, and more willing to quit.
Due to inflation, unemployment, and a decrease in benefits, the minimum wage should not be increased. Poverty is a problem though, and can be addressed by making it easier for an individual to get an education, and train for a steady career, that will lead to a steady life.
Thanks for your time,
"Colorado 2016 Ballot Measures - Ballotpedia." Colorado 2016 Ballot Measures - Ballotpedia. N.p., n.d. Web. 07 Nov. 2016.
"Raising Minimum Starting Wages to $15 per Hour Would Eliminate Seven Million Jobs." The Heritage Foundation. N.p., n.d. Web. 07 Nov. 2016.