By Jordan Hill
Assistant Opinions Editor, The Spectator
In the words of Kristen Wiig in the movie Bridesmaids, “Help me. I’m poor!”
According to the United State Department of Labor website, the last minimum wage increase occurred in 2009 in accordance with the Fair Minimum Wage Act of 2007. This act occurred in three steps. Minimum wage increased to $5.85 per hour effective July 24, 2007; to $6.55 per hour effective July 24, 2008; and to $7.25 per hour effective July 24, 2009.
Now, 5 years later, President Obama is proposing another increase in minimum wage. As a part-time employee and full-time student, I am ecstatic about this proposal. Will this change be as positive as I dream of or will it wreck our economy even more?
After a downward spiral in the economy, Obama believes Americans and the economy are on the mend. While his increase in minimum wage proposal is stalling in the legislature, Obama is making an executive order to increase minimum wage for workers under new federal contracts. He proposes to raise the minimum wage from $7.25 to $10.10 over three years.
After working first to increase the wages for federal workers, he will then go on to work with Congress to raise the minimum wage for all employees. A few states have already raised their minimum wage and President Obama urges others to follow their example. While they have a choice to jump on the bandwagon now, if they do not do so, President Obama will make it happen regardless.
Our economy is constantly changes which means we must change as well. I believe that is true. But let’s take a realistic look at this proposal.
The main concern of this proposal is that it will only discourage employers from hiring more workers. With small business owners having to pay their employees more per hour, they may not be able to hire as many people as they originally planned. This increase in minimum wage would put thousands of young adults out of work. That could force businesses to raise their product prices to be able to afford to pay their employees, which in turn costs the customers more money. And if people working low end jobs get a raise, won’t people that have a degree in their business field want a raise as well?
As great as a $3 raise sounds, it’s faulty. Thousands of citizens will lose jobs due to lack of money that President Obama thinks businesses can pull out of their back pocket.
I would love an increase in my hourly wage. However, I have to look at this plan as a whole, not just for myself. Is what’s good for the goose really good for the gander?
Published at various outlets including http://vsuspectator.com/2014/02/06/minimum-wage-extra-money-comes-with-a-price/