Dollars With eight dollars, I can get a great breakfast and lunch deal from a local fast food, and possibly even fit in an after-lunch snack, if I limit my spending. Eight dollars an hour is an agreeable minimum wage and should not be increased in California. In most states, living off of eight dollars an hour is horrible because the economy is down right now and prices for everything else are rising. But in the state of California, many make their way around Just fine. Eight dollars an hour, working forty hours a week, that’s almost your monthly rent and groceries!
You don’t need the fanciest furniture or the coolest technology around. If people learn to save their extra cash, living off of Californians minimum wage is Just about enough. California may be the state where “dreams come true” but in most cities throughout California, dreams are able to come true without the government increasing minimum wage. For example, if the minimum wage is increased then the government will need to mint more money and the effect of minting more money is inflation. In response to this, the value of the American dollar will decrease and cause ore harm to the already-beaten economy.
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Instead of raising the minimum wage higher, what companies really should do is create more Jobs. Everyone knows that top-notch Jobs need top-notch workers whom of course receive top-notch pay. But if their pay increases, then the amount of experience needed for these Jobs will also increase since it is a high-paying Job. Most applying for these Jobs will get rejected because before, they had enough experience to work minimum wage in these companies, but with the wage and experience necessary increasing, the chances of ending a minimum wage Job will decrease.
This results in the unemployment rate in California to once again arise, creating more trouble for those residing in this state. Californians main goal right now should be to create more available Jobs for the unemployed and the easiest way to do that is to keep the minimum wage as is. For example, two economic professors from Princeton, David Card and Alan Krueger, made a study called The Princeton Study. They studied the relations between the minimum wage and the unemployment rate in certain states in the United States.
In cost of their studies they, “found that the entire net effect of an increase in minimum wage results in a slight decrease in employment. ” This shows that if the minimum wage is increased, that it will lead to an even higher unemployment rate and that is exactly what we do not want for California, or the United States in general. We want the minimum wage to stay what it is right now so the unemployment rate can increase. The professors proved that, according to the Princeton Study, “employment actually expanded in New Jersey relative to Pennsylvania, where the minimum wage was constant”.
This shows that we have two choices: to decrease the minimum wage or to Just leave it alone. This also proves that increasing the minimum wage should not even be an option because the economy will worsen. This choice may take a while, but it will all be worth it in the long run. California seems to be one of those states where the minimum wage has been an arising issue for a number of years. For example, in California, the minimum wage welfare. Dry. Peter Brandon of the Institute for Research on Poverty studied how raising the minimum wage affect the transition from welfare to work.
He found that casing it keeps welfare mothers on welfare longer. Mothers on welfare in states that raised their minimum wage remained on welfare 44 percent longer than mothers on welfare in states where it was not raised. This shows that a higher minimum wage is making life more difficult for the people living in poverty. It would not be fair to increase the minimum wage Just to circulate more money within the country and make millions of people suffer when they really do not have to. We should Just keep the current minimum wage in California at eight dollars an hour and see the economy flourish in the long run.