First the impact of raising the minimum wage for everyone:
Most minimum wage jobs are basic entry level jobs. These jobs require little training or specialized skills.
Which means; when the labor costs gets to a certain level; companies can often develop a machine to replace that job. (PS the machine rarely takes breaks, doesn’t need days off, no health insurance). Some jobs will be replaced by automated systems and machines. Fewer jobs for those with little training or skills.
How many baggers do you see at your grocery store these days? How often do you self-scan your items? How often do you hear an automated response when you call a company? Companies found a way to design away the jobs.
How many Cashiers does Amazon have?
2. People have less incentive to improve themselves.
If your minimum wage is $11 to $15 per hour some people will be satisfied with that income level and not do technical training that makes them more valuable to society.
Every day we each rely on millions of people to make our lives more convenient and enjoyable. Many of these people you will never see, and yet their contribution to our lives is vital. The more skills and education people have the more they can contribute to the rest of us.
So, please go out and be the best “you” you can be, it will bless the rest of us.
3. Your burger will get more expensive:
That increase in labor cost has to be passed onto the consumers. It will increase inflation. Prices of products increase and this will especially hurt those most sensitive to these price changes. Those most sensitive to price changes are often the same who the minimum wage increase is designed to help.
The cost of living will rise and people will again scream for another increase to the minimum wage. The cycle and situation will remain the same…
So, What is the solution?
Minimum wage jobs are not designed to be a career. They are a starting point not the finish line.
Here are 3 idea for increasing your minimum wage:
- Education: This doesn’t have to be a traditional college so here are some other options
- Technical school, there are great programs for becoming a better you in several fields.
- Apprenticeship, some of these are formal, or you can also find that talented local person who will train you in an informal process through experience.\
- Military: most jobs in the military don’t involve carrying a rifle every day. They train you with real world skills that will transfer to your life after the military
- Entrepreneurship: this is finding a need and filling it by providing a product or service. Instead of looking for a job look for a way to serve others. If you looking for a way to get started try Dan Miller’s 48 low cost business ideas.(Affiliate LInk)
- Persistence: If there is a position you want, keep pursuing it. Then once you get it, keep pursuing and working hard.
“When you do more than you get paid for eventually you’ll be paid for more than you do.”- Zig Ziglar
Comment below: tell us what other ways people can increase their minimum wage?