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In: Operations Management

Why the united States should not make $15.00 the minimum wage?

Why the united States should not make $15.00 the minimum wage?

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The United States should not make $15.00 the minimum wage because:

Increasing the federal minimum wage would have two major consequences for low-wage workers: wages would rise for many, which would remove some families from poverty. However, some low-wage workers will be out of work, their family incomes will decline and that would put them below the poverty line. The matter is up to date, important and worthy of open and honest discussion, as there will be a forthcoming vote in the House of Representatives on a bill to raise the state's minimum wage to $ 15 an hour by 2024.

Increasing the minimum wage has unintended and disastrous consequences. Employers, especially small and medium-sized businesses, will be severely affected by the additional costs incurred. Nearby local shops and businesses with small razor profits will be forced to raise prices to cover additional labor costs. With increasing prices, customers may choose to take their business elsewhere. Loss of customers means loss of revenue, which can result in business losing staff.

Larger companies with larger budgets will measure the rising cost of labor and choose to invest in technology to attract workers. This trend will soon be in the food service industry, hospitality, retail, construction and manufacturing sectors. Amazon has just opened a handful of Amazon Go stores that present themselves as the "newest type of store with the world's most advanced shopping technology. No line, no out - just grab and go! ”Fast food chains and department stores will follow that and work out your own cost. Company executives will see that $ 15 an hour can be raised regularly. They will look at the unknown future costs associated with the additional increases, combined with the ever-increasing insurance costs, as well as the time-consuming work of staff, training them and dealing with income. It is easy and inexpensive to replace technology. The unintended consequence will be that there will be very few jobs available to those who need it most.

We have a strong influx of immigrants to the United States, which is great news. However, as anyone who lives in the suburbs understands, there are many working people who can pay a small wage, but dishonest businessmen compensate people for less than the minimum wage. This practice closes the door for opportunities for teens, students and mothers to return to the workforce to find work.

A rough calculation of the average restaurant envelope that employs workers at $ 15 an hour shows the unintended consequences of a small wage increase. If workers work eight hours a day each week, during one year, their labor costs will be $ 436,800. This does not include insurance costs, benefits, premiums and other taxes. Many service industry businesses have small margins and an increase in this figure could close the company. If a restaurant raises prices too high, they will lose their customers to other restaurants that pay people under the table - breaking the rules - or moving technology.

While some people may benefit from an hourly wage increase, some workers will be allowed to save on expenses. Employers can choose to cut hours off the board for everyone. Whichever way the employer goes, some employees will be in a worse position. Seattle's move to $ 15 an hour, over the past few years, has resulted in workers being given fewer hours and losing their wages.

In the past, as a community, we looked at entry-level jobs as a way to earn some money during school and in the summer. Certain low-income jobs have never been intended as a means of providing for a family. Low-wage jobs have been the entry point for workers. Low end work has been an ideal place to learn about the real world, how to interact with management, interact with customers and gain experience moving on to bigger and better things.

These types of activities are not designed to support a family. They are meant for the person who wants to get their foot in the door and interact with the staff or the person who wants more money or a temporary storm, if they lose their job. We mislead people into thinking that these low-paying jobs will be able to bring sustainable livelihoods. It is also racist. It is as if we are telling a part of people that they cannot achieve great things. By telling a group of people that it is acceptable to spend your life on a minimum wage job, we can honestly say that we do not believe that they can do anything other than cleaning toilets, making beds, ironing or cutting grass. There is nothing worse than telling someone that they will be faced with a low wage, hard work and no bright future ahead. Would you want that for your children? We should encourage people to think of these activities as a starting point for something bigger and better.

We can better serve this segment of society if we allocate funds to train people to move into areas where the need is greater, such as trade. We have to offer learning skills to learn skills that can be sold at a specific sale. If an individual were learning how to become an electrician, a carpenter, a plumber, a heating and cooling technician, or a mechanic, they would create a lucrative career for a long time. Continuing education, computer training and skills training will help people too.


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