Point
by Mariah Durian
California Legislature passed a minimum wage increase for California that will be effective starting in June 2014. Minimum wage will increase to $9 in June 2014 and then to $10 by 2016. Many people see this as a positive notation that our economy has begun to heal with people making more money. But it will have the opposite effect.
By raising minimum wage, the state government is not helping at all; it just means that the standard of living is going to raise, inevitably raising prices. The momentum the state is trying to start is only going to lead our economy spiraling downward. The inflation our economy is suffering is not going to decrease.
The last time Congress raised minimum wage was in 2007, and we have seen little improvement with our economy
“Many entrepreneurs in our state are just now starting to see signs of recovery by hiring and expanding their businesses, and this bill will cause many to halt those plans immediately,” said John Kabateck, executive director of the National Federation of Independent Business of California.
Republican House Speaker John Boehner argues that employers won’t be able to afford the wage increase that will increase, causing thousands of people to become unemployed and lack future hiring opportunities.
“When legislators raise the price of low and unskilled labor, it’s usually laborers who end up paying the price,” said Jeff Jacoby, a columnist for Boston Globe.
The government needs to focus on how to lower prices, not raise minimum wage. Many people including college students can barely afford to live comfortably, if the government spent more time focusing on our economy and ways to achieve a less costly way of producing goods then the state will have no need to raise anything.
According to the Employment Policies Institute they have found little to no relationships between a higher minimum wage and reductions to poverty. It’s ridiculous to punish employers and small business owners just because prices are rising.
Also, according to the U.S. Department of Labor, the employees of nonprofit organizations are subject to minimum wage laws. By raising the minimum wage the government is forcing non-profit organizations to spend more on labor just to keep their standards of services.
It’s understandable that many people can’t support their families by just making minimum wage but it’s not going to benefit anyone in the long run by raising minimum wage, its just going to be more destructive on the health of our economy.
Counterpoint
by Erik Edlund
On September 13, 2013 California Governor Jerry Brown received a bill to increase minimum wage to $10 an hour by 2016.
This is a much needed boost for the millions of Californians who work a minimum wage job.
It is safe to say that Californians would prefer not to work for such a low income. Many people struggle with getting laid off and not being able to find a suitable job besides working minimum wage.
They are left at a crossroad: take the minimum wage job and be able to put food on the table or stay unemployed with no guarantee of finding a better income job and career.
By 2016 $8 an hour would not be sufficient enough to keep Californians content and on the move. The states minimum wage has steadily increased over the years as the Gross Domestic Product has changed. Starting in 1916 with 16 cents an hour to 2008 where it’s at the current rate.
Minimum wage became standard by the federal government in 1938 when President Franklin D. Roosevelt signed into law the 40-hour work week and the federal minimum wage law, under the New Deal. The state economy continues to constantly change; minimum wage should change constantly as well with it.
California is the economic powerhouse of the United States and its workers should be treated fairly. With the increase of gas prices, telecommunications, produce and dairy, it is imperative that minimum wage workers receive an increase in their pay. It would be impossible to keep up with the purchases of these increases with a minimum wage income.
Many of these minimum wage jobs are labor intensive. It would seem unfair for someone who works hard to be paid a measly wage compared to someone who sits in an office all day and doesn’t work nearly as hard enough.
It is very hard to live off of $8 an hour. Perhaps a single individual with hardly any financial responsibilities might be able to pull it off.
However, someone who is the breadwinner of the family would have a harder time living off of the current minimum wage. Their main concern is to be able to provide for their family and not have to worry about the struggles with money.
Many families struggle with living from paycheck to paycheck, hoping that the money lasts until they get paid again.
The future is bright for California and its workers. The State Senate and Assembly are finally listening to the Californians’ cries for a better tomorrow with better pay and prosperity.
Point/Counterpoint gives voice to two sides of a recent news topic and encourages the reader to decide where they stand. You can send in your views at [email protected]