I live in New York State. I can only talk about what I know about the area that I live in when it comes to the topic of raising minimum wage. I’m sure some of the things I say can apply to other areas as well. There are pros and cons to raising minimum wage. When I joined the working class, minimum wage in upstate New York State was $7.25. Now, I believe it’s $11.10 and on December 31,2019 it will be $11.80. In downstate New York, meaning New York City, minimum wage is already $15.00. The cost of living there is higher than upstate New York so, there wages are always higher than ours. (By the way, I live in Buffalo, NY which is upstate.) I did some research, and this is what I found out.
I’ll start with the pros to raising minimum wage. One of the pros is it will help reduce poverty. People could make more money and be able to afford the essential things that are needed to live. Food, shelter, and clothing, and maybe transportation if you want to add that in as essential, whether it’s your own private car or public transportation. If people have a decent standard of living, them they tend to be more productive. Another positive thing about raising minimum wage is it reduces income inequality and gives people an incentive. Giving people an incentive or pay for performance allows them to have a reason to work. An increase in minimum wage also gives more spending money to people. This will help increase business revenue because there will be higher demand because of all the shopping people will be doing. Also, people who are making more money can have more time to invest in their education. If they are making decent pay and can maintain, then they will be able to obtain and invest in an education. This brings me to increasing minimum wage helps businesses because if you are paying your workers decent, they won’t leave for a higher paying job, meaning they won’t have a high turnover rate, meaning less money they must spend hiring people.
During my research, I found that most of the cons were pertaining to business owners who opposed to increasing minimum wage. One of the cons is labor cost is the most expensive thing when you have a business. When the government forces them to pay their workers more money per worker, they will hire fewer workers to cut down the cost or keep the cost of labor the same. This will increase the unemployment rate because minimum wage workers now must compete for these jobs. Smaller companies may not be able to operate with just a few workers so, sometimes they will have to file for bankruptcy. Another disadvantage of increasing minimum wage is it can increase the unemployment rate and force people onto welfare. This can happen because it helps the workers who have jobs. Studies have showed that experienced workers received higher pay and less experienced workers lost their jobs. By this happening, more people were forced into getting on welfare.
They came to their decision because the pros outweighed the cons. If I had to state my opinion and put my input on where I stood on this debate, I would say I’m leaning more towards the people who are the cons side. I get it and completely understand the people who are pro raise minimum wage, but I must disagree. No, I am not rich, living comfortably, and yes, I do receive Medicaid health insurance and as of right now, I am unemployed, so I am collecting unemployment.
Again, I can only speak for New York State because that is where I live. I only know the ratios here and what goes on in this state. First, I do believe $7.25 is way too low. I don’t think minimum wage should be that low but raising it to $15.00 in Upstate New York State is crazy. I think $11.10 is a good wage for a few reasons. If you think about it, people who go to college and get an associate degree or a certificate, a lot of those degrees starting pay is at $15 for entry-level. I think this is a clear indicator that starting minimum wage at $15.00 will disable a lot of people for striving for higher educational achievements. Also, the cost a living is going to keep going up. Every year as minimum wage goes up, so will the cost of living up. I am currently living in a one-bedroom apartment. When I first moved here, it was $730 a month everything included. Second year, it was $745. Now, it’s $760, but I am moving out of this place because of a smelly neighbor. As I am looking at other place, the rent is even crazier. Places that are one bedroom with amenities or utilities included are $750 plus. Places that are lower than that are either run down, nothing is included, the place are small, or in a bad area. So, with that being said I am more on the con side of this because my living situation will be at stake of the cost of living going up because of minimum wage increasing.
How do you feel about the increase of Minimum wage?