$15 creates ton of problems

The increase in minimum wage to $15 would cause a lot of problems.

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A rally of about 300 Fast food workers demanding to have the minimum wage increased to $15/hour in Minneapolis, 2016

Mya Shroll, Reporter

Some people I know opened a local gym in town a while ago, where the kids and teens of Pocatello, Idaho can go to enjoy an afternoon with their friends. It has almost gone out of business due to the raises in wages and common necessities that are needed to run a gym. 

Recently, the government talked about raising the federal minimum wage. This could cause a lot of problems in our community, such as putting small, local businesses out, and increase costs of basic things.

Less than half (45%) of the 2.6 million hourly workers who were at or below the federal minimum in 2015 were ages 16 to 24,” Drew Desilver, a reporter for Pew Research Center said.

While this survey was taken in 2015, there are still many teenagers in Pocatello that could lose their jobs if the minimum wage was raised. And teens wouldn’t be the only people taking a hit.

“Small business owners, who often operate on thin profit margins, would likely end up dealing with the consequences of a minimum wage increase,” reporter Matt Casadona said .

Small business owners wouldn’t be able to afford the increase because the cost of everything needed for a business would rise. They would be so busy trying to afford the prices, they wouldn’t be able to pay their workers.

Along with teens losing their jobs and businesses shutting down, the unemployment rate would rise all over the country, not just Pocatello.

“The 2019 CBO report estimates that raising the minimum wage to $15 an hour by 2025 would result in the loss of approximately 1.3 million jobs,” Said J.B. Maverick, continuing by stating that, “the numbers could be substantially higher if companies made a major move toward outsourcing more jobs to less expensive labor markets outside the country.”

On top of everything else, we would encounter family incomes decreasing. (Family income is the combined total income of all members living in a single household above a certain age).

The exploitation of child labor and the undercutting of wages and the stretching of the hours of the poorest paid workers in periods of business recession has a serious effect on buying power,” President Franklin D. Roosevelt said. As a result, the FLSA created the minimum wage, banned child labor, and limited each workweek to 44 hours.

While the increase in the minimum wage would be able to pull so many people out of poverty and would help with productivity in the workplace, it would cause just as much harm as help.

“Increasing the federal minimum wage would have two major impacts on low-wage workers: earnings would increase for many, which would lift some families out of poverty. However, other low-wage workers would become jobless, their family income would drop and it could place them below the poverty threshold,” said Senior Contributor, Jack Kelly.

The best way to prevent these issues would be if each state could choose a minimum wage above the current minimum, that way in places with high unemployment rates, it wouldn’t make matters worse.

Though the current federal minimum wage in the U.S. is $7.25 per hour, 29 states and D.C. have approved higher minimum wages,” said Maverick.

The rise in the federal minimum wage could cause many problems in our economy, such as raised unemployment rates, lowered family incomes, shut down businesses, and others. And even though it may do some good, it could cause just as many issues in the long run.