Last week, I discussed my fear and disgust of both the Millennials and Generation Z supporting the belief that our country would be better off as a government-controlled socialist regime than that of the strong free market capitalist system that helped our country grow in the past centuries. However, there is one particular thing that disgusts me just as much as last week’s topic: the demand for a $15 an hour minimum wage.
Many of those who support raising our current minimum wage to that particular amount wonder why there are people who don’t want minimum wage to be raised, and proceed to either call their opponents “selfish” or “immoral,” especially the younger generations.
To put it bluntly, raising minimum wage will hurt our economy as well as everyone living in this country. Why this is an issue is based on the fact that just for employers to pay their employees that wage, they are forced to do several things just so they’re able to pay for everything else related to their business.
Let me base an example around a generic grocery store. A grocery store has many employees doing different jobs based on their skills, and like any other store, they have to order and sell items to the public as well as pay for the usual utilities (water, electric, etc.). Grocery store owners have to make sure that they are able to make a profit to purchase the items to sell, pay their employees, and pay for the utilities. How they are able to do all three is based on how they price their items. This is another reason why there are so many different stores with different prices.
Now, let’s pretend that the $15 an hour minimum wage becomes law. The grocery store owner will now have to figure out how to pay his employees. He sees that products that are ordered for the store to purchase went up, so he has to raise the price of the items to sell. He also sees that the utilities have gone up due to the law, so he has to make sure the prices he raise will be enough to pay the utilities. Now, there is even a bigger problem. He now has to pay his employees (no matter what skills they have) more than what he originally paid them. This is where he would make the most difficult choice to either cut down the hours of his employees to pay them or worse, being forced to lay off or terminate several employees just to meet what the law requires.
Employees, especially the really skilled ones, will be forced to work fewer hours, and make little for their effort. Those that would be laid off or have their job terminated will have to try to find another job, and hope that they will be able to be hired. If not, they will have no choice but to file for unemployment. Even the consumers will be hurt due to them having to pay more for their items of choice, even though those items are not worth the extra price. It would be like buying a five-star burger, but it has the quality of something you could easily buy from the Dollar Menu from McDonald’s.
Currently, the minimum wage man dated here in Texas is $7.25. Our state would see a little over double the hike if these individuals who want the demanded minimum wage get their way, thus making them as well as everyone else suffer due to their selfishness and not understanding what happens when minimum wage goes up.