Does the increase in minimum wage affect us?
As of Monday, minimum wage for restaurant workers in certain qualifying establishments in the state of California has bumped from $15.50 to $20 dollars. Although, this may be beneficial in ways as it provides more financial support among those who are currently working under the new law, it can cause some conflicts within its employees and the economy today.
In Today’s economy, it does not hurt to have slightly more money in your pocket. With the prices increasing nowadays and as we speak it would seem reasonable to increase minimum wage a tad bit, so today’s society is not struggling as much. However, that’s where a conflict arises within the economy itself. Its not rocket science to figure out that as wages go up so does the cost of everything else. That’s how the system has been set up since the early days. According to the population today, necessities such as groceries have went up in prices which is quite outrageous. Moreover, as wages go up so does the cost of living and that’s not the only problem that has taken place today.
Additionally, prices going up isn’t the only problem we are facing today. Unfortunately, because of the increase in minimum wage this causes employers to let go some of their employees simply because they can’t afford to keep them. One can see how unfair this can be as it puts their workers at risk and in fear of losing their job. It’s an unexpected disadvantage to some who would have never thought they would lose their job but continue their work life and enjoy their increased pay. Therefore, this could discourage others from applying to these certain establishments as it would make it harder than it already is to get a job especially for young adults.
To conclude, one can see how problematic this new law can be as it creates negative outcomes which goes against the original intent of raising minimum wage. Nevertheless, the raise of minimum wage can still benefit others financially and even increase a workers work ethic.