$15.00 an hour minimum wage? I was just reading that several states are thinking of raising their minimum wages to $15.00 an hour. Sounds all good and will make for a lot of happier employees, but has anyone thought about the long term effects? What are your thoughts on it? Although a $15.00 an hour minimum wage would make many employees do a happy dance in the streets, the long term effect could not be so happy at all. Once a $15.00 minimum wage were to take effect, most if not all the smaller mom and pop stores would be going belly up because they wont be able to afford to hire any employees, in fact they would more than likely have to lay off what ever employees they have. Small businesses wont be the only ones effected by the wage increase. Intermediate and large retail chains such as Walmart will decide to institute layoffs instead of paying minimum wage, which will add to the countrys unemployment. Larger businesses may not go out of business completely but I can almost predict with 100% certainty that they will only keep a skeleton crew consisting of only the employees they need. With many people across the nation being laid off and collecting unemployment they will be faced with smaller incomes. For example, once a person is laid off and collecting unemployment, that person only collects a percentage of his or her regular wages which means less income for the average American family which in turn will bring a slower economy across the nation. With less income and people struggling through hard times there will most likely be a rise in crime, depression and once a persons unemployment is exhausted you will see a major increase on people applying for public assistance from the states and Federal Government. The end result would be that the U.S. would lapse into another recession. Many people are not back on their feet yet from the last recession so the hard hit from then will be even harder hit now.
Posted on: Mon, 09 Jun 2014 00:02:30 +0000
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