“If the minimum wage is 15 dollars and someone offers you a job for 14 dollars and 50 cents, you are not allowed to take it. The voluntary agreement between a worker and an employer is interfered with by the power of the government.” – Paul Guppy (Economist and Policy Analyst)
Simple economics tells us that when the minimum wage increases, the unemployment rate increases and the general level of prices increases
In many cases, especially if the minimum wage increases in a big jump, consumers are the ones who feel the consequences first hand as these new payroll expenses are passed on to them.
Every worker deserves a livable wage that can support them and their families, and everyone on both sides of the aisle wants to see workers’ wages go up. However, the best way to increase wages is through the natural ways of a free market. Artificially hiking up wages by means of the federal or state governments is not the answer. In 1913, Henry Ford increased his workers wages to a minimum of $5 per day. He did this voluntarily as a competitive business decision to prevent worker turnover that he had been struggling with. This was not imposed upon him by anyone. Artificially increasing workers wages leads to small businesses losing out to huge, online competitors who can more easily absorb the new, fixed costs. Artificially increasing the minimum wage encourages informal or “black market” jobs. Artificially increasing the minimum wage pushes teens out the workforce because in many cases, they do not have the skills that adults with more education do for companies to spend 15 dollars per hour to pay them. Wages will go up, but we first have to trust in the free, voluntary exchange between employee and employer. I would like to leave you with a question: After hopefully now having a better understanding of the consequences of raising the minimum wage, do you still believe that raising the minimum wage is the best way for the US to increase the wages of its workers?
I drew a lot from my economics class as well.