I have thought a lot about the fight to raise the minimum wage. I hate the thought of anyone not being able to financially support their family. I also hate the fact that many are refused public assistance because they choose to work and therefore make too much money. I understand raising the minimum wage seems like a good idea and it makes sense in theory. If people don't make enough money, have them make more money. That fixes everything, right???? Not quite.
1) The minimum wage in SC is currently $7.25/hr. President Obama wants to raise the wage to $10.10/hr. That's almost $3/hr. Quick math here...40 hours a week..that's an additional $120. But that's great right. That pays for groceries or pays an electric bill. Maybe, but what about the business owner that has 50 minimum wage employees to pay. He/She already has to figure out how to come up with the money to fund the Affordable Care Act, now we want him/her to reach into that savings account (it's just bursting with money, right) and shell out an extra $6000 a week to pay those people?! No problem!!! Until they can't and they close and then the minimum wage workers are now unemployed workers. Hmmmm...who pays that wage?????
2) Also, riddle me this--for all the people who make $10 or $11 or $12/hr--the people who make that because they worked with this company for 10 years and have worked hard through low wages and financial strain--what happens to their wage? Are they now the new minimum wage workers making the minimum legal wage or a dollar or so more??? How about the people that have gone to college or trade school and are at entry level salary levels (sadly a lot like what's listed above). Is this how we reward them for their time, hard work, and money spent?
3) There is no free money. Businesses are already struggling. They can't afford to pay higher wages. This will bury many of them. Raising the minimum wage will raise the unemployment rate which in turn will send the economy into a downward spiral and what happens then?? Higher prices on goods, gas, and everything else. Home loans will be difficult to get, interest rates will increase--the general cost of living will skyrocket. At that point, the minimum wage increase is pretty much pointless.
