Samantha Zimmermann, Staff Writer
Debate over raising minimum wage has taken hold across the country. While supporters argue that an increase in take home-pay will increase the purchase of goods and services, I believe a raise in wages will have disastrous effects.
Higher wages will cause businesses to raise their prices, layoff employees, cut benefits, and will reduce desire for career advancement and self-betterment. In states where minimum wage has increased, businesses including Macy’s, White Castle, Dunkin’ Donuts and Wal-Mart have all suffered. Massachusetts is one of two states that has raised its statewide minimum wage to $10 an hour.
Wages were increased on January 1, and since, retail employment in the state is already down 2,200 while it has rose by 416,000 nationally in the last two years. Not only has the retail sector been affected, but employment at restaurants, hotels, and hospitality venues has also fallen. In the nation, four Wal-Marts are being closed this year, and two of those four are in Massachusetts. Massachusetts is also home to two Macy’s department stores that are being closed this year. Some businesses are choosing to offset wage increases by raising their prices. Dunkin’ Donuts in Boston are now charging more for coffee than Starbucks, and I am sure this will turn-off loyal customers. As a Starbucks employee, I hear customers complain all the time about our menu’s prices, and I can’t imagine them wanting to pay more money for Dunkin’. White Castle lovers in New York should also expect to begin paying more for their tasty hamburger sliders.
Over 400 locations exist in New York, where minimum wage is set to increase from $9 to $15 an hour. White Castle’s vice president has reported that the company will need to increase their menu prices by 50 percent to keep up. More than anyone else, small businesses will suffer. Many family-owned businesses can’t afford to pay a higher minimum wage.
A number of my family members are in the private sector – my dad is an independent insurance agent and my aunt and uncle own a local printing and design store.
If wages are raised, my family members and owners of small businesses across the nation will not be able to afford to hire employees.
Raising wages will not only hurt businesses but will also damage individual’s drive for advancement, further hindering low-wage workers from achieving a more successful socioeconomic outlook. Workers who suddenly receive $10-15 an hour will be less inclined to go to college or seek a more specialized career.
Although the general idea of raising wages may sound fine and dandy, people need to dive into the actual effects this action will have on the economy. Look at the places like Massachusetts where wages have been raised and ask yourself, is it worth it?