Written by Emma George
As high school students, we are on the search for a job to save for college or to buy any goods we have in mind. Being either younger than 18 or in need of more education, we are forced into the system of a minimum wage job. For me, on the search for a job, I looked for a high starting salary and an activity that would interest me. There’s a wide variety of job options with different levels of payment. For example, at Target I would get paid $12 but management was poor and I’d be stacking boxes all day. At Cafe Hollander (my current job) I would be paid minimum wage ($7.25) with good tip money and quality management. At Kohls, I’d be making $8.25 with good management but going bored out of my mind. Looking at all these options, I surprisingly choose the lowest paying job when looking at these statistics. However, with tips, I actually make around $11 an hour for running around seating people, going up and down stairs excessively, and cleaning tables constantly. Even still, I’d like a bigger paycheck, would you? Want to start a union with me?
During my hunt for a job, I assumed I’d want the job that pays the highest. Businesses are smart, they know this. They also know that with a higher wage, the fewer hours they will be willing to provide me. In contrast, they know more people will come to work for them with good pay. Currently, the minimum wage across the country varies. “By 2022, 17 percent of Americans will live in a city or state with a $15 minimum wage.” Specifically, Amazon is looking to boost their pay to $15 an hour. Will these higher paying jobs do well for the economy and boost job growth? Or do places that have fast job growth, raise wages? Now as an on-looker for a higher paying job, if the minimum wage was raised, some people argue that this would benefit the economy allowing the lower class to spend more thus driving the demand. As people are able to buy more they also are able to buy higher priced goods. Therefore, businesses can raise prices and still get people to pay for their items. This see-saw effect doesn’t seem to improve the economy in my opinion. In fact, this reminds me of inflation. The more we get paid, the higher goods will be priced and we will go back to where we started. While it’s complicated to determine the best wage, we see that in our country, each state has a different minimum wage point. Our neighbors in Minnesota get paid minimum $9.65 working the same job just in another state. So obviously some politicians need to get to work and fix this issue before my union strikes.
Another interesting takeaway, the supply of workers to be a host is high, while the supply of skillful soccer players is low. Vise-versa for demand. The demand for world-class soccer players is high while restaurants aren’t going door to door looking for hosts. However, even with a multitude of capable hostess, they won’t get any workers in the door if there is a better opportunity cost somewhere else. When I work at Cafe Hollander I consider if I could be making more money with my time somewhere else. “Price equilibrium is the wage at which the number of jobs exactly matches the number of workers willing to labor at that price.” (UCLA Anderson School of Management) This is how the equilibrium point can be made and how $7.25 is Wisconsin’s starting wage. While I don’t have the skill set (sadly) to be the next Ronaldo, do I still deserve $7.25 an hour?
There’s a lot to debate here so let’s leave it to the comments to sort this out....
Works Cited
CrashCourse. “Labor Markets and Minimum Wage: Crash Course Economics #28.” YouTube, YouTube, 27 Mar. 2016, www.youtube.com/watch?v=mWwXmH-n5Bo.
“Through the Minimum Wage Looking Glass: Economic Consensus Unrealized.” UCLA Anderson School of Management, 3 Oct. 2018, www.anderson.ucla.edu/faculty-and-research/anderson-review/minimum-wage-primer-leamer.
Of course we all want a higher paycheck, however, I believe you gave a good point when bringing up inflation to the argument. The more employers have to spend on their employees, the higher chance that they are going to fire people because they cannot afford such a workforce at the price. In America, we would be powerless to stop that, as we cannot tell businesses what to do. So thousands of people would become laid off, ad unable to find a job with the wage and hours that they need. In addition, you are completely right about the inflation that would occur. In order to offset the prices of their employees, companies would simply raise prices. Lastly, like you said, the demand for workers among the entry level jobs is not that high, as anyone could usually do the manual labor, and most high school students or those without secondary education need these kinds of jobs. Therefore, the flow of workers coming to large corporations would stay the same, as everyone needs a job, but companies simply would not be willing to take these people in. That is why while it sounds nice to have a larger paycheck, it might not be that conducive.
ReplyDeleteYou should get paid based off the amount that you're contributing to society through your job and work. Based off of our age and inexperience there are very little opportunities to contribute greatly to society in a workplace. Most of the opportunities for us to get a job are within the retail and food industries. In both of these industries we aren't actually contributing a ton to society compared to careers like engineering and being a doctor. We deserve to make a smaller salary in these types of jobs because the amount the we're contributing directly correlates to how much we should make.
ReplyDeleteI think your piece is interesting because it is definitely the difference between personal wants and proper ways for a business to make money. Ultimately, no matter how close we may be with the owner/boss, at the end of the day workers are a cost. Not to say that $7.25 is enough to live on, but the way our society is structured encourages people to move up in positions to have more sustainable living. As just a high schooler however, trying to prepare for college finances, activities and other external costs, it is difficult to do such without getting paid a decent wage. However, I agree that the minimum wage being raise would also be an issue. Not only would other job positions that get paid higher "loose" sense of value, but inflation would increase and we would be experiencing higher costs in our output flow of cash. In the end, even if the wage was raised, it would balance out. I guess it's just up to workers to work hard to move up and/or to be on the search for well-paying positions.
ReplyDeleteWhile yes it would be in the employees favor to raise the minimum wage from $7.25 to say, $9 or $10, I agree with your exact point. If we were to raise the minimum wage, we would also be raising the prices of goods as well as our overall economic prices thus bringing us back to where we began. We would continue to be chasing our tails and soon the community would be unsettled with a “low” minimum wage of $10. In order to maintain a stable economy we need to have the higher and lowered paid people to create an equilibrium value of prices. By raising each price we will soon drive our nation into inflation and ruin all the work we have put into our economy. Therefore, maintaining the minimum wages creates diversity in the economy, and if people are unhappy with their paychecks, they can work harder themselves to accomplish what they need.
ReplyDeleteA lot of good points were brought up about minimum wage in this paper. Looking at the visual it shows that wisconsin is at the minimum hourly wage for minimum wage. If wisconsin was to raise minimum wage wouldn’t everything that is being sold have a higher price too? Businesses are looking to make money, and if minimum wage is raised that means that they would either have to sell more product to get the same profit, or raise the prices of goods to get the same profit. If the demand of a product is going to be about the same it’s harder to sell more of it, so these businesses would be more likely to raise the prices on this good. Having a higher salary is nice, but having to pay more for everything basically cancels out the raising of minimum wage.
ReplyDeleteI think that all people want to make more money, and when looking for a job usually people look for the best paying. However I never realized that raising wages would result in high demands since everyone would be making more money. This may cause businesses to raise their prices, since the population would have enough money to spend. I agree that raising wages in our state may not be beneficial to growing our economy. We would still be where we are at today, just paying more money for common necessities.
ReplyDeleteThis is a really well written post with lots of information to digest. First off, it would feel weird to have minimum wages raised to $15 in three years, having it be almost $8 lower than that right now. However, I think you nailed it when you said that prices of goods and services would increase, because this change in underlying conditions would allow a salary increase for almost all currently-working people, creating an increase in demand for certain goods and services. Because of a possible increase in demand, businesses will most likely increase their pricing, causing a bit of inflation. I'm clearly no where near an economic expert, but I believe that this is what is most likely to occur.
ReplyDeleteI would argue that the minimum wage should be higher than it is now but not a drastically. Maybe something more like 8.50 or 9 but any higher than that will cause inflation in the economy. More people will be making more money and be able to buy more things so prices of those things will have to increase as well. Obviously I would like to make more money at my own job. Who wouldn’t? But with that being said, I am also a teenager that doesn’t have a lot of skills that employers are looking for for a higher paying job. I think we should get a little bit of a bonus in terms of our wages because as teenagers we have a lot going on in our lives and we work hard for the money we earn. A lot of us have crappy jobs that no one wants to do so why should we get punished more with low pay? I believe the minimum wage should be raised to about 8.50 or 9 dollars because we deserve a little extra but if the minimum wage is raised too much it will cause inflation and we don’t want that.
ReplyDeleteThis is a very interesting topic and I agree with what you are saying. I agree that not everyone chooses the highest paying job if it doesn’t interest them. You want to perform work that you enjoy doing. I feel like more and more teenagers are looking for jobs in high school because college is becoming more expensive and they want to feel have a stable amount of money to support themselves their first year in college. But if businesses start to increase their minimum wage, well they can only have so many workers and they are going to have to start firing a lot of workers. Which would decrease the amount of teenagers who can get a job. Younger people who are applying for jobs have a hard time getting a raise because of their age. But I feel like you should be paid based on how much effort you put into the job, how much time you are contributing, and what you are all contributing.
ReplyDeleteWhen we try to get a job, I feel as though it is true that we all want more money, because we will obviously need it for necessities and other basic items in our lives. While an increase in our pay could make us feel more satisfied with our earnings, you make a good point with how even if the minimum wage is raised for a job, other prices could continue to go up for various items. Inflation is very detrimental to the economy of a country, as we have seen in different situations of the past. In this case, now the suppliers come into play more than the consumer; when amounts go up, so can the prices. In the long run, we want what is best for us, and what will provide a solid financial foundation for future endeavors; if we can’t afford rising prices now, what will happen in the future when a similar debate is still going on?
ReplyDeleteI think the most interesting point that can be found in this whole discussion is the fact that different businesses and workplaces offer their own minimum wage that can be considerably higher than the federal minimum wage. I believe that, because these types of businesses are able to afford paying their employees a bit more, the businesses that keep their minimum wages at the federal $7.25 are going to have employee shortages. I believe that this type of competitive pay format between different workplaces will make the equilibrium price for labor go up on its own, with little to no interference from the government. Of course, if there is no change brought on by the government, then obviously there will still be small businesses that can only afford to pay their employees $7.25, but the majority of large business will have to compete with each other in how much they pay their employees in order to avoid workforce shortages.
ReplyDeleteMinimum wage should be raised. Although most of the people that are receiving minimum wage are high school students, do they deserve this amount of pay? Some places may qualify for this amount of pay, but many jobs deserve an increase of minimum wage. Students are trying to save up for their future and provide for themselves with a minimum wage of $7.25 this will be difficult. Today prices have increased for basic goods, such as a private good of gas. Paying for gas with having to drive for a minimum wage jobs is not worth the time and effort working for that company. Minimum wage should be raised because the amount of work people do is not equivalent to the earnings. Also with an increase of prices for goods, the hourly amount of pay should also be raised.
ReplyDeleteI do wish I could make $15 an hour but I know if that is the minimum wage it will seem like nothing due to inflation. The pay separation between jobs you speak of is part of the problem, people want the perfect job with the perfect pay which especially being only a high schooler just isn’t realistic. More people want money while doing a job that either requires less or suites their interests which is why it’s called a dream. Now for teenagers the pay between $7.25 and $12 is amazing considering most teens don’t have to pay for everyday needs such as clothes, food, insurance, gas, ect. Yet we still demand for higher wages, this process of working high amounts of hours and receiving low pay is a stepping stone to the real world and hopefully motivation to get a degree no longer having to worry about the minimum wage. Hopefully they raise the minimum wage gradually so people realize that inflation is occurring and theirs not an outrage on increased price on products.
ReplyDeleteThis was really good post and I agree about it is hard trying to find a job. Personally I have been looking for job for about a month now and I just can’t find the right one because they all pay bad or they pay good but it is extremely boring. I liked how you also put the image of the minimum wage tracker because it showed what states were above the federal average. To conclude you had a very good soccer analogy and I agree it is all about price equilibrium.
ReplyDeleteI agree with you in your paper. I like that you mentioned that not every one chooses the highest paying job, because some people are more content with pursuing they enjoy instead of something that will get them a lot of money. I think all people would appreciate a raise in their wages for their job, but you make valid points on how if minimum wage as raised, lot of other prices will go up which in the long run may not be good. It makes sense we may not be able to afford raising pay and prices, but I feel like it needs to be figured out because the inability to raise prices and pay may become more and more of a problem.
ReplyDeleteThis post was very interesting and very well written. It got me thinking right from the beginning. I loved the soccer example it was clever. I agree about how finding a job can be difficult because there is so much to take into account such as the pay, interest level, availability, and more. Right now I am trying to balance, school, work and now rugby..its crazy. I think everyone wants what they cant have and also everyone wants to make more money. Those are just two things that will never go away. I think this was a very good topic choice as so many people can relate to this and this topic may interest many as opposed to other topics. Nice job you had good information and you made it very relate able and easy to interpret.
ReplyDeleteI liked how you mentioned the management and number of hours you get scheduled for because it's something people don't always think about. Of course I want to be paid more but I also realize that I work part-time at a job that requires no education, so finding workers to do the job is not hard. I think a small raise of minimal wage could be beneficial but doing it too fast will definitely have an impact on prices and therefore will not even matter in the long-run. While i'm sure all of us wouldn't mind a larger pay check most people working these minimum wage jobs are high schoolers who aren't paying for housing,our own car,other people etc. so we have to accept that until we have a higher degree of education or get a "harder" job this is the only pay we are able to get. If we won't work for $8 an hour somebody else will.
ReplyDeleteWhen I was reading this I thought it was really interesting because I waitress so for me the minimum wage is $ 2.33 per hour and the restaurant I work for uses tip credit. Compared to Hollander where you make minimum wage and have your tips on top, my tip are used to meet minimum wage so they don’t have to pay me as much. Although I end up making more than minimum wage, should my restaurant be allowed to pay me so little and rely on my making tips? It creates incentive for servers to work harder but it also means we walk away with less money at the end of the day.
ReplyDeleteI agree with the fact that it is hard to find a job theses days, because there is a lot you have to think about before you go and expect the position. You have to think about the pay, interest levels, availability, and there is a lot more that goes into it. Everyone that makes less money wants to be making more and wants what this guys have. But when you get to that level all you want to do is being making the most money possible, like the professional baseball player Mike Trout he signed a 12 year $430 million contract to be with the Angles he is the highest payed player in the MLB right now. Knowing this and from what you have written people are just going after the best paying jobs so they can have the most money.
ReplyDeleteThis post reminds me of the economics behind this all. This was a very well written post and something I can personally relate to. When I was applying to work at Qdoba, I requested to make the job average of $8.50 an hour working there. Because they want to save all the money they can, they are only going to give me that much and nothing higher. Considering the success of the company, I know that I could have asked for a higher wage, however since the price for food at Qdoba has remained the same, wages are going to remian the same. It does makes sense we may not be able to afford raising pay and prices, but I, too, feel like it needs to be figured out because the inability to raise prices and pay may indeed become more and more of a problem.
ReplyDeleteI really liked how relevant your post was to your audience, as I'm sure many of us are currently looking for a well paying job. While reading this, I was in agreement with you that pretty much everyone can make the claim that they would like a job that pays well, but is it worth it to have a high wage but be doing something you are not interested in? Therefore, you would think that pretty much everyone would apply directly to jobs that pay the most, therefore increasing the demand, but the reason that there are so many workers in so many fields is because of preference and interests, which allows to somewhat balance out demands for jobs. However, you did make a very interesting point on how businesses are very smart, as they know that if they offer a higher wage, then they know there is going to be more demand for workers, which then allows them to schedule each worker less time and therefore not earn as much as they initially perceived. Overall, I agree with each claim you raised and enjoyed thinking about this post in terms of my own work life.
ReplyDeleteI haven't related to an econ blog post more. As a senior in high school, I have already tried a variety of different jobs from babysitting to retail to catering. Each seperate job has their perks but also a downfall. For example, babysitting is non taxed and it is flexible to your schedule but you are not guaranteed hours. I also like the point you made about how if a company increases their wages, more people are drawn to work there and hours get cut for all employees. So you may be making more per hour but you are not working as often. Minimum wage needs to be set somewhere in order to prevent inflation.
ReplyDeleteI agree when I look for a job I make sure that I am interested in it but I also look at how much I would get paid per hour. College is very expensive and we are still learning valuable skills that are needed for the higher paying jobs. If businesses put up a higher wage they will get more people who are willing to work for them however there are so many other factors that you mentioned that would make this not be the case. The business has to be overall good in order to attract hard working employees.
ReplyDeleteThis was really good post and I agree about it is hard trying to find a job. Personally I have been looking for job for about a month now and I just can’t find the right one because they all pay bad or they pay good but it is extremely boring. I liked how you also put the image of the minimum wage tracker because it showed what states were above the federal average. To conclude you had a very good soccer analogy and I agree it is all about price equilibrium.
ReplyDeleteI have a few things I disagree with. The bedrock question of this paper is whether or not teens deserve to be paid more for the same work and how a minimum wage increase would affect the economy. However there is a fundamental flaw in this question in its assumption that minimum wage jobs are worked by teenagers. While this may have been true in the past, today the average age of a minimum wage worker is 35 with at least 17 years experience in the workforce, and 88 percent are above the age of 20 according to EPI dot org. It may be true that teenagers don't necessarily need this minimum wage increase, but I think its sort of arbitrary to discuss the benefits to teens as they are such a small percentage of those affected by a minimum wage increase. It is also not true that business would offer less hours to workers if forced to pay a higher wage because even if someone else is working the hours you are giving up, the business is still paying the same amount so a wage increase would not affect hours. My third and most important disagreement is the idea that an increase in the minimum wage would raise prices across the board thus making the wage increase useless. You are assuming that a increase in wages would be paid for by an increase in price. However it is more likely that a wage increase would come out of a corporations profits rather than its prices. This is because many minimum wage jobs are in very competitive markets like fast food. If McDonalds decided to raise their prices to fund this wage increase but Burger King decided to fund the wage increase by reducing profits then people would begin to go to Burger King more. Mcdonalds can either lower prices or continue to lose business.
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