Minimum Wage Should Not be Raised

Minimum Wage Should Not be Raised

Jordan DeAtley, Journalist

The topic, should minimum wage be raised or stay the same, has the United States wondering what’s best for our country. Personally, I think the minimum wage should stay the same at $7.25, for many reasons. Number one, if the minimum wage gets raised it would result in job loss. Number two, if the minimum wage is raised it would have little effect on reducing poverty. Number 3, small businesses would not be able to pay their workers enough money, therefore, they would have to charge more money. Although many people want the minimum wage to be raised, there are too many contradicting facts that show why it should not be raised.

If minimum wage got raised it would result in many job losses. If it got raised to $15 dollars in an hour, there would be a total of 1.4 million jobs lost by 2025. Small businesses will struggle to pay each employee $15 an hour, which means they would have to fire some of their employees. As a counterargument, the CBO estimated that 900,000 people would be lifted out of poverty. It could really go either way with poverty, depending on the particular money situation. There would be more job loss for the smaller the business is.

Raising the minimum wage to $15 wouldn’t have that big of an effect on poverty as some people think. Cato Institutes article on the topic at hand says, “In the previous federal minimum wage increase from $5.15 to $7.25, only 15 percent of the workers who were expected to gain from it lived in poor households, according to a 2012 review by Mark Wilson. If the minimum were today raised to $9.50, only 11 percent of workers who would gain live in poor households.” Low-skilled workers would have a harder time finding jobs if the minimum wage gets increased.

One-third of small business owners say an increase in the minimum wage would result in many layoffs. These small businesses could go out of business which in the long term can make a society sad. Many small towns really love their small businesses; I personally would be very sad if Jendy’s Pizzeria in Hanover, Indiana went out of business. Some people may think why can’t small businesses just not pay minimum wage, but most small businesses must pay at least the federal minimum wage.

On the other hand, raising the minimum wage would increase the income of 17 million people or 1 in 10 people. Also, some businesses might just decrease the number of hours they are open and decrease the number of hours employees work. This argument makes no sense to me, because if a business decides to be open fewer hours, that is money that the business is missing the chance of earning. There is a small probability that small businesses might actually prosper from a minimum wage increase, but a probability nonetheless.

As you can see, there are many reasons to not raise the minimum wage. Raising the minimum wage would result in job loss, hurt small businesses, and wouldn’t have a massive effect on poverty. Contrasting these points is that minimum wage might help decrease poverty numbers a little bit, but not enough for the country to notice any big numerical change. Also, raising the minimum wage could increase the income for some people. In conclusion, raising the minimum wage to 15 dollars has its pros and cons, but I think the cons definitely outweigh the pros.