The ideas and viewpoints provided in Robert Reich’s article “The Morality of a $15 Minimum” may be the crux of our entire employment economic system and the struggles within. If I were an employer, I may be wondering if I should pay my employees the optional minimum wage. Let's take a look at the pros and cons of the optional minimum wage so that you can make an informed decision for your business.
The Pros of the Optional Minimum Wage
1. It attracts better workers. When you offer a higher wage, you are likely to attract workers who are more skilled and have more experience. This can save you money in the long run as you will not have to train new employees as often.
2. Employee turnover decreases. When employees are happy with their wages, they are less likely to look for other jobs. This saves you money in the long run as you will not have to train new employees as often.
3. It increases productivity. Employees who are paid fairly are more likely to be productive and work harder. This means that you will get more work done and save money on resources.
4. It boosts morale. Employees who feel like they are being treated fairly are more likely to be motivated and work harder. This leads to a better work environment and increased productivity.
5. It reduces stress levels. Employees who feel like they are being paid fairly are less likely to feel stressed about their job, which leads to a better work environment and increased productivity.
6. It improves retention rates. Employees who feel like they are being paid fairly are less likely to look for other jobs, which saves you money in the long run as you will not have to train new employees as often.
7. Employees are more likely to recommend your business to others. A good reputation is important for any business and paying your employees a fair wage is one way to ensure that your business has a good reputation. When your employees are happy, they are more likely to recommend your business to others, which can lead to increased profits.
8. It’s the right thing to do! If you believe that everyone deserves to be paid a fair wage for their work, then paying the optional minimum wage is the right thing to do!
Cons of Raising the Minimum Wage
There is no doubt that raising the minimum wage has its benefits, but there are also some downsides that employers should be aware of before making the decision to raise wages. Here are some of the potential cons of raising the minimum wage:
1. It could lead to inflation. One of the potential risks of raising the minimum wage is that it could cause inflationary pressures in the economy. When wages go up, businesses may respond by increasing prices in order to maintain their profit margins.
2. It could lead to job loss. Another potential downside of raising the minimum wage is that it could lead to widespread job loss. Businesses may not be able or willing to absorb the increased labor costs associated with a higher minimum wage, so they may cut jobs in order to stay afloat.
3. It could widen income inequality. While raising the minimum wage would increase earnings for low-wage workers, it could also widen income inequality. Since businesses would likely pass on at least some of their increased labor costs associated with a higher minimum onto consumers through higher prices, consumers would face increases in costs for goods and services.
4. It could reduce economic growth. One final potential downside of raising the minimum wage is that it could reduce economic growth. If businesses respond to a higher minimum wage by cutting jobs or reducing hours worked, this could lead to real reductions in economic activity and slow down overall economic growth.
My opinion has not changed after reading Reich’s article. Knowledge helps to shape people ideas. Therefore, when we read something online and it introduces a new thought it may change our perspective. I do not participate in online arguments about any subject. I feel confident in my ability to take in information and make my own decision and I am rather particular about the sources that I get my information from. So much of what is available online is trash.
There is no easy answer when it comes down whether or not employers should pay their employees Optional Minimum Wage rates set by different states and or our nation. I do agree with Reich’s statement in his article, “So we’ve raised standards and lost such jobs. In effect, we’ve decided such jobs aren’t worth keeping.” Ultimately there are jobs that some of would rather not do, and others may settle for due to need based situations and these may be what keeps us diverse. In the long run, robots will begin to take over many of the minimum wage jobs and this will alleviate this fight but leave us with a new struggle. What do we do with unskilled workers? How will we move them from unskilled to skilled and can our economy handle that many skilled workers?
Works Cited
Reich, Robert. “The Morality of a $15 Minimum.” Monday, October 19, 2015. http://robertreich.org/post/131476708345
“What is the Minimum Wage?” (Nov. 2022) https://minimumwage.com/what-is-the-minimum-wage/
US Dept. of Labor. “Minimum Wage” ?” (Nov. 2022) https://www.dol.gov/general/topic/wages/minimumwage
