Woods: Minimum wage increase would hurt economy
September 22, 2014
The minimum wage is an idea that when properly used can bring prosperity to a town, city, state or country, however; when the concept of minimum wage is abused and incorporated in the wrong manner it can have devastating effects to the community and surrounding areas.
There are three consequences that would come of wrongly using the minimum wage; like raising it in areas where the economy is spiraling further and further into a pit that can’t be dug out of.
1. Loss of jobs: Businesses struggle to afford to keep running especially small businesses if a new higher minimum wage is set jobs that used to be there will cease to exist because of forced budget costs.
2. Less full time job opportunities: When businesses are forced to downsize, they will make full time jobs more scarce and offer more part time jobs for those who are receiving a higher minimum wage.
3. Inflation: As the minimum wage raises the cost of living increases. Costs for housing, groceries, and other ancillary items that contribute to living expenses raise right along side the minimum wage.
Overall, the economical disaster that would ensue if the minimum wage was raised is unfathomable. Cities would topple, businesses would go bankrupt, jobs would disappear and the cost of living would skyrocket. Raising the minimum wage is not the solution to the problem our country is facing. I can’t tell you what the answer is, but it should be in our countries best interest to come up with a better solution.