Minimum wage increasing to $10 per hour in California might be a one-way ticket out of poverty for many individuals trying to make ends meet. An increase of the federal minimum wage has been long overdue and many people have grown restless.
Although the increase appeals to most Americans who live under the poverty line, some people may think the increase could have negative effects. Legislation to propose an increase of the minimum wage has been proposed by Sen. Tom Harkin and Rep. George Miller, who introduced the Fair Minimum Wage Act of 2013.
According to supporters, this act will help alleviate the stress of the cost of living for many Americans, consequently encouraging an increase in consumer spending. When consumers have more money to spend, economic activity increases. This is a good thing. This all seems splendid, but the annual increases during the next three years to the minimum wage are not going to be enough to reduce the stress of paying the bills. This bill has been long overdue and the increase won’t reach the $10 mark until 2016.
As the minimum wage rises, hopefully people will see the incentive behind this legislation. However, some may fear employers becoming increasingly selective when hiring as wages increase because the cost per employee will rise, theoretically resulting in less hiring. Skeptics think this will lead to a decrease of labor demand.
However, people need to have faith and see that there is a need to keep up with the ever-expensive cost of living in California. If Gov. Jerry Brown signs this bill it could help many working class families in California financially. If a city such as San Francisco, which leads the nation at an average of $10.55 per hour, is working with these numbers then the rest of California can, too.
As a student worker at San Diego State, a $10 minimum wage would be ideal in helping me not stress because of my finances, allowing me to focus more in school. We go to college in the hopes that we will obtain a well-paying entry-level job after graduation, but until then we have to work at $8 per hour.
Surprisingly, if this bill passes it will be the first time in six years that the minimum wage increased.
The key theme in this debate contributes to economic justice. An increase in the minimum wage could put some small businesses in a pickle. Some small businesses might even be inclined to raise their prices to pay employees’ higher wages.
However, there is a problem when the average American earns $15,080 per year and is forced to live with the federal minimum wage as it is now. This is not enough to live on and this is not economic justice.
Professors here at San Diego State remain divided about the minimum wage increase.
“Most economists agree that the increase of minimum wage is a bad idea. It sounds good on paper, but its actually a bad idea because if you force employers to pay their employees more they will typically respond by hiring less workers,” economics professor Shoshana Grossbard said. However, other professors think an increase in wages would be beneficial.
“I would support an increase in the minimum wage to move toward what is called a ‘living wage,’ which considers the cost of living. The cost of living varies within and across states, and MIT developed a living wage calculator based on one’s location in the U.S.” SDSU political science professor Cheryl O’Brien said.
Expect this to be a trending topic during the 2014 mid-term elections as California tries to set a trend for a nationwide minimum wage increase. As a firm believer that an increase in the minimum wage will be beneficial to us in the long run, and as a college student who graduates in 2016, I expect to read about the benefits this increase could have in California during the next few years.
