Lately, there are a myriad of issues and concerns arose regarding
minimum wage. As of January 2014,
minimum wage in the state of Florida is $7.93 an hour (not counting tipped
employees). Due to the recent upsurge of
liberals in office continuously fighting to raise the minimum wage, some
conservatives are being seen as out of touch, only looking out for the rich, or
even worse, nonchalant about the strife of hardworking
Americans. Nothing could be further from
the truth. Instead of just refuting
these erroneous statements, let me first explain what I feel the paramount conflicts
are:
1.
Liberals claim that minimum wage is not enough
for the public to adequately provide for their families. This is where one of the first issues lies.
People should not be supporting their families on minimum wage; rather, minimum
wage-paying jobs should be utilized by the younger population (such as high
school and college students) to earn additional spending money. Instead of concentrating on increasing the
minimum wage so people could provide for their families, let’s concentrate on
increasing their earning potential.
Instead of just giving people an additional couple of dollars an hour, let’s
instead concentrate on utilizing that money to improve people’s marketable
skills and even more importantly, to bring jobs to the community.
2.
If we increase the minimum wage, people will
earn more, therefore eradicating poverty.
This seems pretty straight forward: $2 more an hour will equate to $80
more a week, or $4,160 a year. However,
it is not as simple as that. Once businesses
are required to increase the minimum wage, a couple of things may happen in
order to offset the increase in wages:
a.
The business will be forced to lower the hours
of some of their employees – Business owners may decide to cut the hours of
their employees in order to stay at the same level of revenue as they were at before. Fewer hours for employees means less
purchasing power for them, which may lead to them being in the same
situation or worse than before.
b.
The business will have to increase the price
of the product/service they offer – In order to keep revenues at the same
previous level, the business owner may be required to increase prices. If prices for goods begin increasing across
the board, then this will just offset the increase in the minimum wage.
c.
The business may have to lay people off in
order to be able to afford the increase in wages – If people are laid off
by the business owner, it will not only put some people in a worse financial
situation than before, but it will also cause a new strain in government
welfare and unemployment funds.
d.
The business can potentially close its doors –
If the business closes, then various people will suffer, including the owners
as well as the initial people that the minimum wage increase was trying to
help.
As you can see, the crusade to increase minimum wage by the
liberals, though probably being sought after for the right intentions, will not
really benefit the general population.
This will be a temporary improvement at best, if people even benefit at
all. Conservatives, with the best
intentions in mind as well, are trying to resolve the issue long term. Again, let us focus on fixing the actual
issue, which is not “minimum wage is too low” but rather that people are trying
to support their families on minimum wage.
Let us focus on how to improve.