Economics is a science that is constantly changing. The variables that come with an ever-changing world and financial situations lead to constant best guesses based on previous successes.
Therefore, raising the minimum wage is a bit of a gamble. Increasing the minimum wage causes inflation. With the increase of mandated wages, businesses will have to raise their prices in order to keep the value of their product from deflating.
Few will get to experience the benefits of making more since they’ll need to spend more. Businesses could suffer in their payroll since they won’t be able to afford to pay so many employees. With businesses struggling to stay open due to the struggle of being short-staffed as they are, they will need to downsize or close altogether. There is also the question of increasing wages based on performance and how companies will be able to support the demand for rewarding their employees for doing good work.
There is a question of morality when it comes to minimum wage. Wages must be mandated in order to protect employees from being taken advantage of by their employers. Those who work minimum wage must contend with the public and public behavior, including abuse. Many would argue that they should be paid more because of this. There is a vast difference in paying bills when one makes $9.50 vs. $15.
However, if the market increases prices to meet the demand to keep their product value from deflating, it could be argued that increasing minimum wage will simply make it harder to be employed, not to mention afford a loaf of bread.
Economics is a science. May we find a way to increase wealth while we avoid wearing dollar bill dresses.
Kelly, J. (2019, July 10). The unintended consequences of raising minimum wage to $15. Forbes. Retrieved September 15, 2021, from https://www.forbes.com/sites/jackkelly/2019/07/10/the-unintended-consequences-of-the-15-minimum-wage/?sh=4ea38bf7e4a7.