Economists have repeatedly explained the unintended negative impacts that an increase in the federal #minimumwage would have on low-skilled workers.

Low skilled workers not only represent a major part of the American population, but they also constitute a sensitive demographic that the government ought to protect.

The current minimum wage provisions contained in the Fair Labor Standard Act aim at redistributing a basic wage rate amongst American workers such that it aptly represents the dignity in labor and rewards them accordingly. However, an increase would most likely hurt the very people that such minimum wage provisions intend to help.

How would this happen?

It is basic economics to know that whenever there is a minimum wage rate increase, employers are forced to earn more to meet up with the new workers’ wages. This can only happen if at least one of two things happen: business increase prices of goods and services, or they cut down the costs of their operations.

To cut down costs of operations, these businesses may have to reduce staff that works in some divisions that have minimal impact to the production line. The average victims of such decisions are low skill workers.

For example, in Seattle, as a result of a minimum wage increase from $9 to roughly $13, major disruptions occurred in the labor market. Low skilled workers saw their hours of work cut down while the workers with higher skills received the majority of the gains.

To be fair, it is a sad but honest to label the minimum wage increase policy ‘exclusionary.’ It excludes people from the dignity of labor on the grounds of competence and efficiency. These qualities are arbitrary and thus unfair metrics to determine one’s employability.  

Again, an analysis posited the potential effects of the wage rate increase in Montgomery County Maryland. It revealed that one out of every three low-wage jobs would disappear, and the low-wage income of workers would decrease by $360 million every year. They also discovered that a $15 minimum wage would cost that country 7 million jobs. This a staggering number of low-skilled workers to get laid off.

In conclusion, while U.S. democrats in congress assume that doubling the minimum wage would create positive boosts in the economy, it fails to achieve that when we consider various analytical positions taken by top economists. Beyond the economic postulations, real-life scenarios have evidenced the failure of this policy.

There is nothing democratic about laying off the hard workers we should protect. It is more inclusive to keep them by maintaining wage rates around levels that do not pressure employers to either cut costs or lay off workers.