Seattle's new minimum wage hurts jobs
Seattle's new $15 minimum wage approved this week by the Seattle City Council was not embraced by our readers, who voted on the issue in an online opinion poll. When asked if they thought the new wage would help the state's economy, 37 voted yes and 117 voted no.
We agree the wage won't help the state's economy for many reasons.
For small businesses on a tight budget, the added money in wages would have to be taken from somewhere else or passed along to consumers in the form of increased costs for goods and services. This was already seen in nearby SeaTac in western Washington, which already adopted the $15 minimum wage. According to a receipt for a valet parking service in SeaTac, a "living wage surcharge" of $6.93 was added to a customer's $84 parking charge, which comes to an 8.25 percent tax. (The receipt was posted on the Washington Policy Center's website.) Employees retirement benefits and other perks are put at risk because there's less money available to pay for them.
Washington state's minimum wage is currently $9.32, $5.68 per hour lower than Seattle and SeaTac's wage.
The minimum wage was never meant to be a wage that people stayed working at forever.
It was typically set aside for jobs held by teenagers, people who hadn't completed college and other unexperienced workers. It gave people motivation to better themselves either by exploring other career opportunities or pursuing post high school training (either a two or four-year degree or other types of certifications).
Employers knew there would be training and more oversight for an entry level employee, but accepted that because the minimum wage made it possible. In exchange, teens were able to learn the ropes of working and the job market.
At the same time, we realize the country's job market has changed. Some tasks that once were completed by entry-level workers are done by interns or volunteers, eager to get their foot in the door somewhere or make connections for the future. But again, a higher minimum wage takes away employer options. Perhaps the unpaid intern or volunteer would have received a bonus or other gift at his/her end of service.
It is a competitive job market with fewer jobs in certain areas, but taking options away from businesses is not a good move.
It is because raising salaries for non-minimum wage workers becomes more difficult, creating yet another inequality and drain on the business when more experienced workers leave. Any capital expansions and new equipment purchases are also put on hold because higher wages must be paid. Moves like this make it harder for businesses to stay in business and keep experienced workers.
- Editorial Board