Minimum Wage - the Domino Effect

MINIMUM WAGE

The Domino Effect

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Prior to taking this class, I really only understood a very small part of what is affected by changes of the minimum wage.  I thought that if it was increased- even if bit by bit- it would end up inflating the economy.  For example, if it were to be raised- the price of consumer products would rise in equal measures.  Also, I have always heard various complaints that someone with few marketable skills and little income should not be ‘awarded’ with pay in equal measure to those that have been formally educated and built up their various skills. However, Jason Gillikin presents several others.

First, the minimum wage mandates that all employers within the U.S cannot pay their employees even one cent less than what is imposed federally.  Though, individual states and cities are able, and many have, to call for an even higher wage. Unfortunately, many employers either feel they can’t or won’t hire additional staff if it cuts into their profit.  Instead, they cross train their existing staff to pick up the slack.  This directly limits the availability of jobs that people who don’t meet the standards for wages offered above minimum wage.  Which increases the population of the unemployed and offers few opportunities to improve the way they live (Gillikin, 2016).  

This brings up a couple other factors that very much keeps these groups of people from trying to do better. Again, they don’t have the skills required by employers that are willing to offer a self-sustaining wage; let alone a competitive wage.  That is point one; point two is that the government provides the unemployed with a monthly check that is higher than any job they could even hope to get.  Not to mention that the status that is required to receive a check like this- also means they are probably eligible to receive food stamps, some type of health insurance and lower priced health care and sometimes- housing (Gillikin, 2016).