Raising pay will hurt economy

The question that we all need to ask is, “Will raising minimum wage actually help anything?” The answer is no, in my opinion. Raising minimum wage to $15 an hour will make many businesses have to let go of some of their workers, only increasing the number of unemployed people; besides that, increased labor costs means increased product prices, making it harder to buy necessities such as groceries, and plunging the economy into an even worse state.

I work for minimum wage in food service at Warm Beach Camp, a nonprofit organization. Nonprofits simply cannot bump everyone’s pay up to $15 an hour. If minimum wage is raised to $15, I will no doubt be let go, and I am only one in a large statistic of people, adults and teenagers alike, who work for minimum wage and will no doubt be let go as well. As famed economist Milton Friedman put it, “people whose skills are not sufficient to justify that kind of wage will be unemployed.” This will greatly increase the number of unemployed people.

Also, the prices of products will increase due to the increase in labor costs, which will make it more difficult for the large amount of now-unemployed people to pay for common necessities. This will worsen the economy; it is a self-perpetuating cycle that will take effect as soon as minimum wage is raised. “In my view, the economic benefit ‘argument’ is a red herring,” says certified financial adviser Mike Patton.

Raising minimum wage will cancel itself out by increasing labor costs and, in turn, increasing product prices. We should all consider these points deeply before we raise the minimum wage in an attempt to help those who do not make much money, when, in fact, we are only compounding the issue. Say no to increased minimum wage, and save the economy.

Jacob Stetson, age 16

Stanwood

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