San Francisco has adopted a $15.00 per hour minimum wage. Los Angeles will meet that threshold by 2020. There are more and more companies adopting minimum wage structures above the federal minimum wage. Some feel that it needs to be done to allow individuals to survive while others are reacting to keep from being castigated in the media.
From a social perspective, I accept the notion that $7.25 is not a “living” wage. Yet, is $15.00 going to guarantee a “living” wage? How is the person making $16.00 per hour going to react when the person who was making $9.00 is now making $15.00? It ain’t going to be pretty – or cheap. Are the folks clamoring for a “living wage” willing to pay more for their product/services as companies have to respond to rising cost of wages? Or are they going to react as consumers have for decades and buy the cheapest product – which normally comes from overseas – and could very well cost those folks making $15.00 an hour their jobs.
As with all things dealing with economics, the answer will not be clear cut. Some businesses will survive with a new minimum wage and others will fail. Some folk will do better with $15.00 an hour and others will not. Here’s the question I have for those clamoring for a “living wage.” Does raising the minimum wage REALLY going to help solve many of the social ills we’re seeing right now?
I don’t have a straight-forward answer to this problem, because someone who is willing to accept a minimum wage (at any level) has a variety of challenges in front of them ranging from lack of education, to lack of skills, to questionable legal status in this country. These problems won’t be fixed with a few more dollars per hour. The true solutions are much, much more than just wages. Let’s have a good conversation about those issues and see what can be done to provide more opportunities. Regardless of what folks on both sides are suggesting, cutting corporate taxes, or providing higher education, will not be THE solution — but it may include raising the minimum wage.
Wall Street Journal article to read – “Wage Pressure Hits Small Business”