Minimum wage is considered to be the minimum price an employer pays their employee. This price is set at $7.25 by the federal government. The states have the power to raise the price, but not lower it. The highest minimum wage so far is $10.55 an hour in San Francisco, California (minimumwage.com). This price is expected to go up as high as $15 in upcoming years in some places. These increasing prices have been having some downsides to them. Minimum wage going up not only has an effect on the people who have jobs, but also on the customers and the unemployed people looking for jobs. The minimum wage shouldn’t be raised any more than the set federal rate. One problem that arises with the increase of minimum wage is the effect is has on customers.
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These are the jobs that they can easily work while going to school. The Bureau of Labor Statistics found that workers under 25 years old only make up 20% of the people working at hourly wage jobs, but these are also half the people who are making minimum wage (Hassett and Strain). This means that these people are also the ones who will suffer if the minimum wage would go up. They would have a higher chance of getting laid off when their employers decided they can’t pay everyone enough. “After July 2009 increase, reported economist William Dunkelberg, ‘nearly 600,000 teen jobs disappeared, even with nearly four percent growth in the economy’” (Bandow). These teenagers will be the ones who will be hurting not only financially, but also in the long run. They won’t be able to get that work field experience. They won’t be able to earn money and therefore they won’t learn how to manage their money. They won’t be able to learn long-term life skills. Along with people under 25 making up the majority of minimum wage workers, it is found that people who start at minimum wage will within the first year earn a higher wage (minimumwage.com). “Two- thirds of minimum wage employees earn a raise within their first year on the job, according to a study by economists at Miami and Florida State University” (Ortiz). These people would be making more than when they started their jobs, and may eventually be making $10 an hour. There would be no reason to raise the minimum wage, because they would eventually be making the amount that the government wants to raise it to. This way they can work up in their job and become more experienced before they are deserving to be payed more. Along with this, these people are more likely to move up in their job positions. They are more likely “to become supervisors, assistant managers and managers at stores and restaurants, and make a
These are the jobs that they can easily work while going to school. The Bureau of Labor Statistics found that workers under 25 years old only make up 20% of the people working at hourly wage jobs, but these are also half the people who are making minimum wage (Hassett and Strain). This means that these people are also the ones who will suffer if the minimum wage would go up. They would have a higher chance of getting laid off when their employers decided they can’t pay everyone enough. “After July 2009 increase, reported economist William Dunkelberg, ‘nearly 600,000 teen jobs disappeared, even with nearly four percent growth in the economy’” (Bandow). These teenagers will be the ones who will be hurting not only financially, but also in the long run. They won’t be able to get that work field experience. They won’t be able to earn money and therefore they won’t learn how to manage their money. They won’t be able to learn long-term life skills. Along with people under 25 making up the majority of minimum wage workers, it is found that people who start at minimum wage will within the first year earn a higher wage (minimumwage.com). “Two- thirds of minimum wage employees earn a raise within their first year on the job, according to a study by economists at Miami and Florida State University” (Ortiz). These people would be making more than when they started their jobs, and may eventually be making $10 an hour. There would be no reason to raise the minimum wage, because they would eventually be making the amount that the government wants to raise it to. This way they can work up in their job and become more experienced before they are deserving to be payed more. Along with this, these people are more likely to move up in their job positions. They are more likely “to become supervisors, assistant managers and managers at stores and restaurants, and make a