Increasing the minimum: good intentions with bad outcomes

Vlasia Niotis, Web Editor

On Sept. 1, Michigan workers saw a minimum wage increase from $7.40 to $8.15. This increase will continue until the wage reaches $9.25 per hour by 2018.

For a lot of teenagers this sounds like a pretty good deal–and it’s supposed to. For business owners and adults, not so much.

Don’t get me wrong, I’d love to make 75 cents more. But I don’t think this is a good idea.

For starters, it’s a job killer.

Consider a fast food restaurant. When the minimum wage goes up, the business owner will either have to increase the prices, pitch in more money out of his/her pocket, or fire some employees. The business owner will most likely keep the most experienced workers.

The easiest of to do is the third. But what do you replace those lost employees with? An iPad. All you do is put an iPad on a special made stand, download a cash register app and you’re done. The customer pushes in their order on the tablet and sends that order to the kitchen. Simple.

What if the owner hiked up the prices? Well, no one would buy their food. And if we’re thinking realistically, all businesses would increase their prices.

No one would go out, goods are being made but not sold, resulting in a bad economy.

Besides, minimum wage isn’t really supposed to be a living wage. It’s supposed to be a starter salary where you work your butt off to get a raise. These entry-level jobs were not meant to support entire families and the government needs to realize this.

By raising the minimum wage, it’s likely that the U.S. would eliminate some jobs but increase the standard of living. These changes probably won’t be noticeable for a while, but sooner or later, time will take its course.