Saturday, February 6, 2016

The US Shouldn't Raise the Minimum Wage

I wrote a post this past Tuesday, titled Should the US Raise the Minimum Wage? - Thinkjoust Tuesday #34. I invited readers to help me formulate an opinion about the topic. Thank you to everyone who responded, whether it was on this blog or over social media! The featured comments are found at the bottom of this post.

This week's arguments against raising the minimum wage were pretty simple.

"People are willing to work for minimum wage."

"Raising the minimum wage will cause inflation."

I tend to agree. Quite frankly, I find the comments succinct, and I don't see much need to add to them. However, I will say one thing about each.

Minimum wage workers fighting for this change are basically claiming they should be paid double for the same amount of work. In essence, they broadcast a certain message to the world. "I'm too unmotivated to do anything that changes the status quo of my life, like find a better education or learn marketable skills."

And let's talk about what would happen if all minimum wage workers had $15/hour wages. Prices for basic and even luxury goods would rise. After all, more people would be able to afford more products. The demand for our stores' goods would increase, but the supply of the stores would remain the same. So, in order to make more money, the stores would raise the prices. Eventually, minimum wage workers would be stuck purchasing the same amount of goods they are currently, only this time, everything will cost twice as much. This is a concept known as inflation.

How 9 Countries Saw Inflation Evolve Into Hyperinflation

Raising the minimum wage is a catastrophic idea. Unfortunately, it appears the idea has a lot of support. Can we find a better solution, like allowing the minimum wage to rise with the cost of living each year?


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