Last summer I was in the position of numerous other college students home for summer break; jobless and diligently seeking employment.
After a few long weeks of searching, I finally obtained a waitressing position. I can attest to the frustration of working long, tiring shifts while only being compensated for what feels like very little of the work I actually put in.
However, after reading the editorial article on increasing minimum wages and reflecting back on my experience, I find myself asking, “If I were paid $9 rather than $8.25, would I have put more effort into my job?” I always put my best effort forward in everything I do regardless of my pay, so the $0.75 an hour increase in compensation wouldn’t have made me work any differently. I feel that others would agree in that ultimately the main attachment they have to their employer is working hard to secure a paycheck. And considering how difficult it is to find summer employment in the first place, many don’t even anticipate to be paid higher than minimum wage.
According to a study called “Effects of the Minimum Wage on Employment Dynamic” done by an assistant professor of economics at Texas A&M, “the net job growth falls in response to an increase in the minimum wage.” If employers are already struggling to maintain their workers in this type of economy, being forced to raise the minimum wage will mean cutting jobs.
The jobs paying minimum wage are targeted for inexperienced works such as teenagers looking for a start in the labor market, whose work is worth less to employers than the mandated wage. Raising the minimum wage will make it difficult for low-skilled workers to get hired, resulting in an increase in the unemployment rate.
From my restaurant experience, I have seen coworkers laid off because our employer could not afford having extra help due to the tough economic situation. Further increasing the minimum wage might promote employers to contribute to the underground economy if they have trouble affording to keep their helps on the books.
Employers struggling to maintain their businesses may find creative ways to avoid paying cost of payroll taxes, FICA taxes, workers compensation, and unemployment insurance. An example of a creative maneuver is with the implementation of the Obamacare bill.
Recently, a report done by MSNBC stated that Olive Garden was receiving backlash after employing a greater percentage of part-time workers as a way of reducing the costs of complying with Obamacare. By increasing the minimum wage, overall unemployment will go up and negatively affect the working poor’s situation. A solution to creating jobs and increasing an employee’s wage rate is not to increase the minimum wage, but to increase one’s productivity to deserve a higher salary. Government should also be looking to invest in job training programs and lowering interest education loans.
Alice Ni
Madison