The case to make against raising or having minimum wage.
So, seventeen days ago right in my state of Connecticut the governor Dan Malloy has imposed a $10.10 minimum wage. And according to the grocery store I do outdoor shopping cart retrieval for, I am going to see my wage go to twenty five cents more than that some time near my Twenty Third birthday on May 6th. Sounds good to me as I usually work at said market only twenty four hours per week, right?
No, and please allow me to make a solidly scientific case for why I do not see it as a good thing, and if you cannot tell by the title I am going to base it on statistical science mixed with work ethic standards.
Raising the Wage Floor forces merchants to lay off workers and raise unemployment
The Congressional Budget Office has found that rising entry level wages causes not a rise in working incentive but rather a drop in how able merchants are to employ laborers. CBO detects that raising the $7/hr minimum wage to $9/hr would cost the economy 100,000 workers while the $10/hr option would cost the economy 500,000 workers.
But there are private sources with little to no approval of government as is who say speak truth to economics in a similar context. Cato Institute for example opens us to data that reveals that even European Union members without a wage floor are better off than those with a clear wage floor set.
Raising the Wage Floor will force small businesses to close
Gallup, a polling site known for assessing reality in regard to polling numbers and not from any point of view other than the idea that polling numbers are the most important things ever, found something relevant to this post.
Out of every ten small business owners they have sampled, six of them claim they would need to close their businesses if minimum wage was raised by 28%.
In a rebuttal of the Bernie Sanders plan to raise all minimum wage to $15/hr, Business Insider noted that Sanders’s plan would allow currently employed entry-wage workers to afford independent living but at the cost of cutting back on voluntarily charitable ‘worker perks‘.
Who or What are most Low Wage Earning Workers Anyway?
It has been found on Pew Research Center that half of all low paying jobs’ workers are between ages 14 and 25 and half of this half is in a 14 to 20 range within that. And I should know I am turning 23 on May 6th of this year and make about $10/hr gross pay.
It’s also been found that Low wage workers are a mostly white market, 77%, and a very slight majority are male. Whereas the majority of US private sector female workers are more often chasing the 39 jobs that women earn better wages by being naturally superior at, mainly as a result of college students being mostly women.
How Should Low Wage Workers be paid?
All workers in a true free society, low wage or high wage or midsize wage; do or should inherently get paid proportionally to how much of the output is directly theirs. For example, when I hit my thirties I plan to be a reptile and amphibian biologist (herpetologist), and wish to get paid according to what % of the teaching I put out the human public. And in the mean time while I am doing my very simple grocery job I want to be paid based on what percentage of the customer service I put out to the economy.