Take a look at this quick bullet list of reasons why an increase in minimum wage is bad for us.
Before looking into the specifics of the State of Oregon, consider these reasons why increasing the minimum wage as a method to solve the working poor problem is not a solution.
- Small business owners with on site managers will rely more on manager labor, eliminating other positions. Result: structural unemployment increases
- Increased costs will result in an increase to street prices. Result: inflation affects everyone
- People who are not affected by minimum wage (retirees, students, unemployed) will experience a drop in purchasing power. Result: more go without
- New industries can rise to replace industries that require more employees. Result: fewer, newer employed need new training
- Cheaper, imported products from places with lower wages will increase. Result: imports go up, local competition loses
- Overall revenue drops, and businesses then pay fewer taxes, reducing revenue for government. Result: government can do less
- If a push up in minimum wage doesn’t also amount to increases in salaries of existing employees, then existing employees are not incentivized to do quality work. Result – quality is reduced
The argument to increase minimum wage is driven by the cost of housing in the city of Portland. The city of Portland and not the metro area or the State of Oregon needs to solve that problem.
Let the city of Portland work out its housing crisis on its own.