PCP | Proposed wage increase ignites debate

Poverty and employment would not be helped by increase of minimum wage

Emily Melbye

Raising the minimum wage would not solve any problems

Minnesota has the third lowest state set minimum wage in the country at $6.15 and this is not a bad thing.

The state law only applies to workers who are not covered by the federal law, which is set at $7.25. When an employee is subject to both federal and state minimum wages, they receive the higher of the two. According to the Bureau of Labor Statistics, 1.51 million workers in Minnesota are already receiving the federal minimum wage.

In light of these facts, raising the minimum wage would also make it more difficult for businesses to hire young and low-skilled workers.

Based on data from the Current Population Survey (CPS) in 2012, the unemployment rate for teens (aged 16 to 19) averaged 18.6 percent. When small businesses raise their minimum wage they are forced to fire employees, and often younger and less-skilled employees are the first to go.

Although some believe raising the minimum wage would help bring people out of poverty, it does not take into account those who are the most in need. Those who are unable to hold jobs are those in the greater state of poverty,  and therefore they will be unaffected by a minimum wage increase.

Small businesses would also suffer under a higher minimum wage. While large corporations have extra resources to support them through wage changes, small businesses do not. This in turn causes more of them to fail.

Citizens should take into account these failures and consider the negative impacts raising the minimum wage would cause before they make a snap judgement.