Minimum Wage Options

[*Steven*]

It's being raised, I think it's a dumb idea. What are your thoughts on the matter?

The minimum wage in Texas is 5.15$/hr. They're raising it to 7.25$/hr over the next 3 summers. I think that's kind of, unnecessary. For one, the majority of people making minimum wage are young high-school students etc. They don't stay making this wage for very long, and it's typically a starter job in which they make this money. By raising the minimum wage, no one (imo) benefits. The prices of goods go up because the employers are having to pay their employees more money and don't want to lose profit. Because of this, every day goods prices have gone up and people who don't benefit from the wage increase have to pay a larger sum of their salary/paycheck towards those every day goods. The people who are getting a higher wage (assuming they were working minimum) don't earn any more money in comparison to what they can buy. Sure the dollar amount is higher, but they have to spend more.

[Spirited Away]

First, minimum wage must adjust to the rising cost of living. For example, as the price of gas increases (as it has been), the cost of everyday business operations increases making goods and services more costly to consumers. The phrase here is that the current minimum wage "has no purchasing power". If you can imagine, the equilibrium is off, and rising minimum wage makes a good parity.

Second, there is a long term benefit to employers not hiring less skilled workers due to high cost of labor. Guess what? People will be forced/encouraged to become more productive and education has higher value. All in all, if a society is productive and educated, it is better off.

Third, oh wait... I don't remember. What's another concern about minimum wage do you all have?

EDIT---

I agree, raising the minimum wage is actually hurting the people that it's supposed to be helping. It's going to be sad how many small businesses are going to be shut down and how a lot more people are going to be out of work.

Sad short term, happy for long term. Economically speaking, if a business barely makes payroll, it is already in trouble. Anything can make it close; a competing business, for example. Maybe these business owners will invest in something they can do better (make more money) than the business they're currently in.