Minimum wage increases destroy job opportunities for teens and there needs to be a training wage to encourage employers to train them.
Instead of increasing costs for employers, lawmakers should focus on expanding job opportunities through pro-growth policies, thereby raising wages for all. It sounds beneficial to low-wage workers, but minimum wage hikes do not reduce poverty and result in fewer jobs. HURT: Minimum wage increases have been proven to hurt the most vulnerable. This increase will give a boost to those at the low end of the income distribution, who particularly need it due to the sharp increase in housing prices and rents that the state has experienced. The increase was triggered due to the high inflation level the state and the rest of the country is facing. HELP: The tight labor market has already forced the wage above the minimum wage for many businesses, so fewer workers and businesses will be impacted by this increase. I do wish there was an exception to the wage minimum for starter jobs for teenagers, who benefit from job experience. There is little good that is achieved by underpaying people, particularly in an ever-increasing cost marketplace. Workers require higher salaries to remain in California, and most employers have sufficient pricing elasticity to accommodate higher wages. HELP: In fact, most workers are salaried above the minimum wage benchmark, so it’s impact will be minor.
States that still have their minimum wage at $7.25, the federal minimum wage, really do need to get their act together. This raise will be a non-event and is valid with inflation running over 7 percent. When minimum wage went up to $15 an hour, the majority of employers were paying $18 to $20 an hour already. HELP: With the millions of job openings, in every category, in California, anyone working at minimum wage or slightly higher needs to move to a better-paying job. The market works best in striving toward improving productivity while seeking efficiencies that result in a healthy, flourishing economy. Businesses offer higher wages seeking competitive advantages to attract and retain workers. Minimum wage laws establish barriers especially for young and poor workers wanting to find or acquire work, which is counterproductive to a functioning economy. HURT: Preventing employers from hiring inexperienced and/or unskilled workers deprives them of the capacity to attain work skills and obtain experience. Kelly Cunningham, San Diego Institute for Economic Research More people without meaningful work to do - that will hurt. This increase makes more Californians irrelevant. I agree with Yuval Harari: the enemy is irrelevance. Small-business owners, whose profits pay for their families’ livelihood, simply will hire fewer. Large organizations - corporations, governments, large charities - will automate, gigify, or outsource to non-Californians. Exploitation is the exception, not the norm now.
HURT: A minimum wage increase rightfully attacks labor exploitation, but that enemy is generally beaten. Haney Hong, San Diego County Taxpayers Assoc. Lynn Reaser, Point Loma Nazarene University In the current economic environment, raising the minimum wage to $15.50 will not solve any problems. Companies who can only afford to pay employees minimum wage will soon be forced to raise salaries if they want to stay in business. Fast food restaurants are offering up $20 to start, and in return forcing other industries to follow suit. HURT: Businesses are struggling to fill vacancies in all industries and competition has led employers to pay more than minimum wage for entry-level positions. But some small businesses will cut back on workers’ hours if they are unable to pass along higher expenses to customers. Impacted workers are likely to spend their additional income. Therefore, the increase in the state minimum wage may not have much effect. HELP: With tight labor markets and high inflation, employers will continue to feel pressure to raise wages and a number of California cities will have minimum wages at $15.50 or higher. Increasing labor costs could mean that some small businesses may either decide to close their doors or move to a more business-friendly state. Small-business owners are still trying to recover from the economic effects of the pandemic as well as supply chain issues, rising inflation, and labor shortages. As a result, small business must reduce costs in other areas (layoffs or automation) or pass on the increased costs to consumers for goods and services.
HURT: Any additional costs that small businesses must incur come from an already strained bottom line.
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