What is the concept behind our wages along with inflation?
In today’s society, many think the solution to personal and governmental financial issues is to raise minimum wage, but this far from the appropriate solution.
Inflation shuts down every logical reason of putting a higher minimum wage into effect. Inflation is defined on investopedia. com as “ a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service.” If the government decided to raise the minimum wage, the prices of almost everything would rise because the U.S. dollar would hold less value.
Over the past 20 years, the costs of living and everyday items have increased significantly. Prices have increased because salaries have grown and more money has been put into professional sports, movies and so on. Businesses would have to cut some wokers’ hours or fire them in order to repay for the $8.45 to $15 dollar minimum wage as well, which has been proposed across the nation. It could hurt the economy with such a large increase due to the unemployment and underemployment rates skyrocketing.
Former Major League Baseball (MLB) star Mark McGwire, one of the best players in professional baseball during the mid 1990s, made close to 7 million dollars per season. Today, Miguel Cabrera, one of the MLB’s best players makes close to 20 million, showing the significant decrease of the dollar value.
With the exceptions of few, the majority of the people who request the $15 minimum wage are in no position to ask for such money. They likely didn’t go to college and are limited to only a high school education. While there are many who spend the extra dollar to get educated, those who do not cannot expect to be rewarded.
A paramedic, who has one the most troubling, difficult jobs, gets paid $15 an hour. How does it make sense for a McDonald’s worker to make equivalent as someone who saves lives and goes through horrible trauma on a day-to-day basis?
When it comes down to the facts, time has shown that inflation will always be present in our governmental system. Because of it though, a higher minimum wage would not work out well. Due to increased wages, prices would have to increase in order for companies to retain the same profit on sales. Inflation will always proportion itself to society, as seen throughout the past; therefore, minimum wage does not need to increase and would possibly cause more problems than it would solve.