David Henderson has joined the domestic policy think tank as a fellow, and his discussion about the minimum wage explained clearly that even if teenagers are suffering, they should finish school, and after that, they would be able to get average as well as higher wages.
The minimum wage labor has provided severe harm to young adults as well as teenagers. The main issue faced by this age group was that they had equal expenses as compared to the adults who had skills as well as experience.
The young community had very little working experience, and they took jobs that required fewer skills. That’s why the business holders and the economists were looking forward to the effects which would create more people to engage in their work, and the lowest wages would be given. For that purpose, their focus was the teenage group, and according to Henderson, there are fewer jobs and a loss of marketplace competition, which would result in serious turns for the companies and local businesses.
The minimum wage advocates argue that teenagers should definitely be given lower wages than comparatively in the market so that they should not find encouragement to drop out of schools and colleges.
How many jobs would Henderson estimate to be destroyed by a 15 percent increase in the minimum wage?
It is estimated that an increase in the minimum wage to even 15% would result in the loss of jobs. The main reason behind a large number of people becoming unemployed is that employers are not willing to increase the wages, their minds are business-oriented, and they are unable to pay good wages or a little increment to the worker. The estimated number of jobs that would be lost and destroyed because of the increase in the minimum wages would be approximately most of the unskilled and least skilled ones. College and university students are doing these jobs.
The number of jobs decreased in the state would be almost 35,000 to 70,000. It will cause a huge number of teenagers and students to lose their work. All over California, a minimum wage increase would increase poverty in the areas, and it would lead to the loss of almost 70,000 to 140,000 jobs. All over the country, this increase in wages would destroy almost 290,000 to 590,000 teenagers’ jobs and almost 400,000 to 800,000 jobs in all sectors and of all levels.
This act will not help teenagers and young adults, and in contrast, it would cause suffering in finding jobs to protect their financial conditions.
What ulterior motives does the author attribute to labor unions, which lobby for higher minimum wages along with other worker benefits?
There are reasons that help the labor unions create room for the minimum wages as well as other benefits for the workers. From the competition perspective, the worker does not face any competition in finding jobs, and with the help of the labor unions, they use substantial resources to create room for increasing the minimum wages as well as helping the workers with the benefits.
It is clear and understandable that the loss of employment due to an increase in the minimum wage would be a serious problem all over the country and would ruin a lot of people who have no jobs and no training at all. The culture of doing work from the very start day of college seems to be mandatory for students belonging to low-earning families, and because of the loss of employment, they would lose track of education as well.
Works Cited
Sherk, James. “Raising the Minimum Wage Will Not Reduce Poverty.” Backgrounder 1994 (2007).
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