Unintentional Consequences
Missouri voters have said yes to a minimum wage increase
January 15, 2019
Back in November, a ballot measure to boost Missouri’s minimum wage up to $12 an hour by 2023 got more than 60 percent of votes and passed on Election Day. This means that Missouri is one of 20 states that minimum wage will go up in 2019 for more than 5.3 million workers.
On Jan. 1, workers began receiving $8.60 per hour, an increase from $7.85. It will eventually rise to $12 per hour in 2023.
It wasn’t an easy decision, and there was a huge debate before election day took place, and many people aren’t happy with the results.
Proponents of a higher minimum wage say that the previous minimum wage of $7.85 an hour is too low for anyone to live on and that a higher minimum wage will create jobs and increase economic activity. They also say that the minimum wage increase will reduce poverty, as well as government welfare spending.
However, in my opinion, I feel that the minimum wage increase is going to impact society in a more negative than positive way. Being a teenager that works, I know looking into the future, this is going to do more harm than good.
Teenagers and young adults may be out of the workforce. According to the U.S. Bureau of Labor and Statistics, about 50 percent of minimum wage workers are young, and it is proven that the minimum wage increase will decrease teen employment due to job availability. It also is proven that those experiencing unemployment at an early age have years of lower earnings and an increased likelihood of unemployment.
Another disadvantage of raising the minimum wage would be the increase in consumer goods.
According to a study done at Purdue University, raising the minimum wage would increase the price of goods by 25 percent respectively or a reduction in product size between 12 percent and 70 percent.
Certain states, such as in California or New York have a higher minimum wage but this is also due to the fact that the standard of living is higher in these places. Gas costs close to $4.00 in California, according to USA Today, so it makes sense that the minimum wage is $11.00 an hour.
Increasing the minimum wage would harm the poorest areas of the country because employers would have to pay their employees more and would be unable to cover the cost by raising prices because their consumers would not be able to afford them.
There are many diverse opinions on this topic, and although I can see where some people feel that the minimum wage needs to be increased, I feel like it was a bad decision for Missouri because it will lead to unintended consequences.