Guest Commentary: Will Increasing the Minimum Wage Hurt or Help Employees & Businesses?

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Guest Commentary: Will Increasing the Minimum Wage Hurt or Help Employees & Businesses?

by Gary S. Goldman

For many Amer­i­can work­ers, minimum-​wage employ­ment was a tem­po­rary, teenage con­di­tion, as we bussed tables, stocked shelves, or cleaned rooms for tiny pay­checks before mov­ing on to more finan­cially reward­ing work.

How­ever in 2011, 3.8 mil­lion Amer­i­can work­ers — most of whom were out of their teens — earned the fed­eral min­i­mum wage per hour or less.

Advo­cates for a higher wage floor argue, first and fore­most, that it is right to ensure that work­ers have the abil­ity to earn enough to live on. As of Jan­u­ary 1, 2014 13 states have increased their min­i­mum wage.

Some feel that increas­ing the min­i­mum wage would act as eco­nomic stimulus.

When low-​income house­holds earn more money, they are likely to spend it, pour­ing more dol­lars into the econ­omy, the argu­ment goes.

A higher min­i­mum wage might also decrease turnover and thus keep train­ing costs down, sup­port­ers say.

Is rais­ing the min­i­mum wage the real path to eco­nomic recovery?

Those that oppose an increase to the min­i­mum wage, how­ever, argue that the effects on employ­ment rates would be exactly the oppo­site of those sup­port­ers foresee.

A higher min­i­mum wage, they claim, would be too heavy a bur­den on employ­ers, espe­cially small busi­ness owners.

And those employ­ers, in turn, would be unable to hire as many peo­ple — an unde­sir­able result when unem­ploy­ment con­tin­ues to be an ongo­ing problem.

When leg­is­la­tors raise the price of low– and unskilled labor, it’s usu­ally low– and unskilled labor­ers who end up pay­ing the price,”

Mul­ti­ple stud­ies have demon­strated lit­tle to no rela­tion­ship between a higher min­i­mum wage and reduc­tions in poverty,”

What do you think? Would a higher min­i­mum wage help to econ­omy or hurt it?

I feel that there is a need to increase in the mim­i­mum wage.

How­ever, I do not sup­port wage increases that have a neg­a­tive impact on busi­ness thus affect­ing the peo­ple that it was intended to help

We start our life’s jour­ney at a min­i­mum wage, and work our­selves toward a liv­ing wage.

Lets not once again allow an elec­tion year to blur our vision on this mater. With wage increases that are purely based on polit­i­cal gain.

Gary S. Gold­man is the owner of Gary S. Gold­man & Asso­ciates out of Shear­born Ma. pro­vid­ing busi­ness & man­age­ment con­sult­ing ser­vices to busi­ness. His weekly radio pro­gram Busi­ness Pol­i­tics & Lifestyle with Gary Gold­man can be heard each Sat­ur­day at 9 AM EST on WCRN AM 830 Worces­ter MA.

by Gary S. Goldman

For many American workers, minimum-wage employment was a temporary, teenage condition, as we bussed tables, stocked shelves, or cleaned rooms for tiny paychecks before moving on to more financially rewarding work.

However in 2011, 3.8 million American workers — most of whom were out of their teens — earned the federal minimum wage per hour or less.

Advocates for a higher wage floor argue, first and foremost, that it is right to ensure that workers have the ability to earn enough to live on. As of January 1, 2014 13 states have increased their minimum wage.

Some feel that increasing the minimum wage would act as economic stimulus.

When low-income households earn more money, they are likely to spend it, pouring more dollars into the economy, the argument goes.

A higher minimum wage might also decrease turnover and thus keep training costs down, supporters say.

Is raising the minimum wage the real path to economic recovery?

Those that oppose an increase to the minimum wage, however, argue that the effects on employment rates would be exactly the opposite of those supporters foresee.

A higher minimum wage, they claim, would be too heavy a burden on employers, especially small business owners.

And those employers, in turn, would be unable to hire as many people — an undesirable result when unemployment continues to be an ongoing problem.

“When legislators raise the price of low- and unskilled labor, it’s usually low- and unskilled laborers who end up paying the price,”

“Multiple studies have demonstrated little to no relationship between a higher minimum wage and reductions in poverty,”

What do you think? Would a higher minimum wage help to economy or hurt it?

I feel that there is a need to increase in the mimimum wage.

However, I do not support wage increases that have a negative impact on business thus affecting the people that it was intended to help

We start our life’s journey at a minimum wage, and work ourselves toward a living wage.

Lets not once again allow an election year to blur our vision on this mater. With wage increases that are purely based on political gain.

 

Gary S. Goldman is the owner of  Gary S. Goldman & Associates out of Shearborn Ma. providing business & management consulting services to business.  His weekly radio program Business Politics & Lifestyle with Gary Goldman can be heard each Saturday at 9 AM EST on WCRN AM 830 Worcester MA.