Minimum Wage Should NOT Be Raised

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Is $7.25 and hour enough?

Ariana Mandros, Staff Reporter

Teenagers and young adults around the country are rushing to the internet to convey their opinions about the raising of minimum wage.  In a poll taken of 1,000 people in 2015, 75% of the applicants voted in favor of raising minimum wage (Raise The Minimum Wage).  Truthfully, there seems to be many flaws in this idea. Those who are demanding minimum wage to be raised should thoroughly think through the consequences of having a higher wage.

First of all, the money that employees are paid with does not come from the government.  It comes from the employer.  I have seen countless political cartoons that illustrate government officials sitting on a pile of cash and rejecting the raise of minimum wage (Understanding Fiscal Responsibility).

When the government agrees to raise minimum wage, they are not giving companies money to do so.  James Parros, former operations manager of the 99 Cent Store, stated that: “If we sell something for 99 cents, and if we bought it for 50 cents, then we have 49 cents to make a profit.”  Companies like that have to use that profit to cover all of their expenses.  They have to pay corporate taxes, utilities, employees, rent, buildings, cars, etc.

So if the government were to raise minimum wage, there are several things a company could do.  They could raise their prices.  Which would cause less customers to buy their products, because no one wants to pay more money, right?  If less people are buying products, and more money is going to paying employees, then the company eventually might go out of business.

Sometimes, raising prices is not an option.  Especially for the 99 cent store, where everything is 99 cents.   Companies could also hire less workers and find alternatives to having employees.  Employers would have to give their workers extra shifts for less pay.  Things like self-check out machines, online shopping, kiosks, and automated banking systems replace employees and save money for the company.  Which in turn creates less jobs.  That’s the opposite of what we want.

Also, students that are working a low paying job would have less of an incentive to finish school or enroll in college if they are being paid more money at their current job.  If a citizen applies for a minimum wage job and is accepted for said job, he or she should not be expected to be set for life.  These jobs are not necessarily designed to cover the cost of living, and therefore should not be treated as such.

Despite what people are blogging and posting about nowadays, raising minimum wage is not the best idea.  It may be a good idea in the future, but in this economy the consequences outweigh the positive outcomes (The Law Dictionary).   Businesses have a great deal to do in order to keep from going bankrupt, and the threat of being required to pay their workers higher wages is not helping.  If minimum wage was raised, nobody would really benefit from it, which is why the idea needs to be set aside for now so that we can focus on other problems.