I recently met a fellow who adamantly claims that
when minimum wages rise, prices for everything else will almost immediately
double. I think he should do a little fact-checking. First, companies generally
don’t want to drive themselves out of business. Prices for some businesses who have lots of workers who would soon be paid the new $12 an hour are more apt to raise their
charges by 5 to 10%, if at all.* Second; food, rent and utility costs didn’t
double in any of the other 29 states who raised their minimums.
It’s disappointing that, instead of determining ways to
encourage workers to use more empowerment, innovation, imagination and
teamwork, some employers in anticipation of the $12 raise are focusing their
energy on exaggerating how much this will hurt them, while looking to cut
benefits, trim work hours, and seek exceptions or loopholes. (I do agree
that an immediate $15 an hour would injure some companies.)
Indeed, it’s less of a societal failure when more of
our industry leaders realize that higher wages often translate into better worker
pride, stability, and increased loyalty. Employers will be less likely to see
costly worker turnovers when their staff receives something approaching a
living wage. Maintaining experienced employees with institutional memories
saves on training costs, helps with safety awareness, lessens work errors, reduces paperwork and makes for
improved work atmospheres.
Recently at my minimum wage workplace our paychecks
were delayed due to an accounting error. For some this may seem like a minor
nuisance, but for many of us, our anxiety level rose with the continuing uncertainty
of when we might be paid. Concerned work colleagues started canceling weekend
plans and worried about late charges for utilities, which affects credit
ratings, etc. (Fortunately our checks showed up in the nick of time.)
Many people who have never experienced being absolutely
broke don’t realize how large a difference it is to have $300 versus owning nothing. Everything comes to a standstill.
Suddenly, fractured again and stigmatized, we don’t have enough to buy toothpaste and
Raman noodles, or we ponder for hours on our day off whether to do laundry or
save the coins for work- bus fare. The minimum wage raise will help immensely with
our efforts to get unstuck.
I think Gov. Wolf’s proposal to raise the wage to
$12 and then yearly 50 cent increments is right on track, considering that we’re experiencing a good economy.
Our wages have not kept up with the inflation of the last ten years, and this long overdue earned increase would give us
dedicated workers better chances to flourish and shine at our companies and for
ourselves and families; as well as becoming more capable to invest back
into present and future thriving Pennsylvania economies.
JB
*References:
