Melvin Sickler, franchisee of Auntie Anne’s Pretzels and Cinnabon in New Jersey, urges for the minimum wage not to increase based on his experience in business. When the minimum wage is raised higher than the federal minimum wage at$7.25 an hour, jobs become unavailable. Due to Oregon’s minimum wage increase, in 2013, the restaurants in that state hired fewer workers. If it had not been for the raise, the National Restaurant Association, would of hired 23,500 additional employees. (Sickler 19-25). An increase on minimum wage will hurt the economy and low-wage workers.
Although the minimum wage is believed to bring many families out of poverty, according to the CBO, if the minimum wage rises, as much a s one million jobs will no longer be available to people. CBO uses a television ad to illustrate why an increase on minimum wage would not benefit the poor. In the ad, a waiter is replaced by an iPad. The increase in wages will turn into technology and machines taking over many low-wage jobs. (Gray 40-1)
…show more content…
Unlike older studies that suggest no job loss, the most recent studies with new strategies done in 2014 and 2015 suggest that an increase in minimum wage, does in fact, result in job losses, specifically for workers with low skills. From the research done on locations that increased the minimum wage, about 18,600 job opportunities would be lost for teenagers. Furthermore, for a larger group of ages sixteen to twenty-four, 75,600 jobs loss. Neumark also states that even though there is not a lot of evidence on older workers, studies like Clemens and Wither, a study done in 2014, suggests that it would result in a number twice as high of job losses for low-skilled workers. (Neumark