Political Issue - Minimum Wage
Californian voters will vote in Sacramento, CA this week on whether or not to raise the minimum wage to $15, almost 2x the current minimum wage. This is crazy to me because to me, it obviously won’t work for many reasons. Most blatantly, and as my LA Times article states, the bill is not designed at all to “taper to current economic conditions” in California. Essentially, this means that small businesses and other economic institutions are going to be KILLED by this bill in respect to their prices. The prices in our current society are not adjusted to a world where the minimum wage is $15. Therefore, business owners all throughout California are going to have to frantically scramble to adjust their prices to the inflated minimum wage. Another obvious problem with this bill is inflation. Currently, prices nationwide, including in California, are suited and scaled to the current minimum wage, and if the minimum wage were to be raised, it would only cause a period of time where businesses lose money as they figure out how to adjust their prices. Therefore, raising the minimum wage will not make things any easier to buy, it will just change their prices.