When an employer is required to pay a larger wage to their employees, they must cut costs somewhere to pay those wages.
* Perhaps they can raise the price of their product. That means you and I will have to pay more for whatever goods or services they provide. The cost is passed on to customers.
* Perhaps they will cut the quality of their product or the amount. Do you remember when you could purchase a half gallon of ice cream? Most ice cream now comes in 48 ounce containers instead of 64. Or how about when a package of cookies or crackers was 16 ounces instead of 10 or 12?
* Often, the employer will choose to operate with fewer employees. What did we gain? More people unemployed!
Unskilled workers should not be able to earn the same amount of trained employees. Companies that are allowed to hire people at an entry level wage, are able to give their employees raises as they grow in their job skills.
For my first “real” job, I worked as a front desk clerk at a Holiday Inn. I was hired at $3.00 an hour. Once I learned the skills required for the position, I was given a raise – because I was worth more to my employer. The longer I worked at that job, and proved my abilities, the more I was able to earn.
When I pay a high price for something, I want to know that what I am getting is of high quality. The same thing goes for workers. The more I have to pay someone in wages, the more I expect out of them.
If an employer is required to pay a specific amount, no matter the skill level, they will be less likely to hire people with little experience. How are people to gain experience if no one will hire them because they have no experience?