Minimum Wage Increase and What That Means

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Recently there has been a movement to increase the minimum wage from the typical $7 up to $10 or even $15. That would mean that the McDonald’s worker down the street would be making almost as much as a person with a college degree. I’m not here to start a big opinion based piece on my thoughts on this matter, but rather I’m here to inform you of what would happen if the minimum wage increased.

First of all, the dollar menu would not exist anymore. The price of everything would go up to compensate for how much more the companies have to pay their employees for the same amount of work. Things that typically costs a dollar might cost two or three now. When one cost for a company goes up, the rest has to go up as well.

Going with this idea, the cost of food at the grocery store, not only at restaurants, will go up as well. That’s hurtful to many people that have to scrape by simply to afford their groceries. Once the prices go up, the less people will be able to afford to buy on the salaries that they have now (estimating that they would still make the same salary).

Many reports have come out saying that almost 500,000 jobs could get lost because of the wage increase as well. With an additional and much higher cost for minimum wage, companies would need to lose many employees simply to balance their budgets out. You can’t keep all of your employees while giving them all raises. The companies, especially small businesses, would go bankrupt based on that model.

Finally, many people think that raising the wage gap will fix our problems of there being a huge divide between the top 1% of people (the billionaires) and the other 99% (normal people like us). That’s not quite true. There will still be a huge wage gap between us, no matter what. If everything gets raised proportionally, then that gap won’t be lessened much.

The minimum wage increase might sound like a good idea to a lot of people, and surely it could be, but there are many facts to consider before joining one of the protests calling for that increase. The price of everything will go up a bit, thousands of jobs could easily be lost, and the wage gap isn’t actually going to be lessened much. Before considering voting for, or against the wage gap, why not take a hard look at some of the facts and decide whether you believe it’s a good idea for our economy, or if we should just keep looking for other alternatives.

TXTgirl :: Orange County
Photo Source | Shutterstock

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