Casey Lei ‘24

Whether it is to save up for college or to go on vacation with friends, most Americans have worked a minimum wage job when they needed quick money. Recently, there has been talk  about raising the federal minimum wage to $15. Although many states like New York and  California already have a higher minimum wage than the current federal minimum of $7.25,  some states are still stuck at the $7.25 level that was instituted in 2009. The Raise the Wage Act  has recently been introduced, and it entails gradually raising the minimum wage to $15 by 2025.  Before arguing for or against the passing of the Raise the Wage Act, it is important that we  consider the implications raising the minimum wage. 

Raising the minimum wage comes with advantages. One advantage is that it will help  pull many American families out of poverty. Especially for families who may not have had access to higher education, minimum wage jobs are how some families support themselves.  Additionally, many of our frontline workers are minimum wage workers, and they deserve just  compensation for helping our nation flourish, especially during the current pandemic. Statistics  show that approximately 21% of the American workforce would benefit from a raise to $15.  Raising the minimum wage also seeks to decrease the number of Americans who rely on social  benefits programs to get by. This would allow the government to better allocate its money and  better help Americans who need assistance. Many business groups such as the American  Sustainable Business Council and employers including Amazon have also shown support for a  $15 minimum wage. 

However, raising the minimum wage also comes with consequences. One consequence of  raising the minimum wage is that there might be a decrease in employment, especially among  teenagers because employers may opt to hire employees with more experience. In addition to  being great for gaining invaluable workplace skills, minimum wage jobs are great ways for teens  to support themselves and learn about financial management at a young age. With a rise in the  minimum wage, there may be less opportunities for teens of future generations to take. Another  disadvantage is that some businesses may have to make drastic changes to support a raise in the  minimum wage. In an interview with the Wall Street Journal, chief executive of Ohio-based  restaurant chain Buffalo Wings & Rings, Nader Masadeh, says that teens make up 25% of the  restaurants’ staff, and if the federal minimum wage goes up, the first step is to increase menu  prices. Afterwards, the second step is to cut staff, and teens will be let go first. Masadeh says  “employers will not be able to afford to hire unskilled and inexperienced workers.” This proves  that a raise in the minimum wage will harm low-skill workers. 

We are overdue change. The federal minimum wage has been stuck at $7.25 for 12 years  now. It is clear that the pros outweigh the cons. Although raising the minimum wage comes with  issues such as lower employment and increased pressures on small businesses, it will help  reverse decades of growing pay equality, especially for minorities like women and people of  color. Our nation will see a decrease in poverty while seeing a surge in economic security. The  future is looking optimistic, especially if the Raise the Wage Act is passed. 

Resources:

https://www.wsj.com/articles/15-an-hour-minimum-wage-could-further-sting-teen employment-11616837401 

https://www.epi.org/publication/why-america-needs-a-15-minimum-wage/