The Effects of a Minimum Wage Increase
April 11, 2019
The minimum wage in California is increasing faster than ever. Minimum wage is the lowest wage a person can make by law and is meant to provide workers with a stable source of income. In California, it is currently $12 but they have committed to increasing it to $15 by 2022. There are both benefits and deficits that come with the wage increase.
Raised wages would mean raised prices of common goods, and many customers do not want to have to pay more for products. The Mustang Morning News conducted a survey, and found that only 31% of Mira Costa students would be willing to pay more for goods, to support this increase in wage. Although it seems to be a hassle to pay this extra money, minimum wage workers rely on it, because their wages are not enough to live off of, as it is.
The wage increase also can come as a struggle to employers, mostly of small businesses. Minimum wage increase means that they have to pay their workers more money and employees are usually the most expensive cost of small businesses. When they can’t afford to pay all of their workers more money, employers have to resort to layoffs. Some argue that the threat of being laid off increases employee productivity, but overall, being laid off is not ideal for workers in need of a job.
When you look at the cost of living, it is incredibly difficult to live off of just one minimum wage job. Most minimum wage workers are forced to get a second job in order to pay for all of their living costs, including rent, utilities, taxes, food. Due to the fact that minimum wage jobs are necessary for the functionality of california’s economy, experts agree that a raised minimum wage is necessary to keep californians employed and thriving.