In an interview this week with 47 ABC, Senator Mary Beth Carozza said raising the minimum wage would be harmful for job creation on the Shore. After carefully listening to her interview and viewing her and her colleague's arguments on social media, here are the flaws with her argument against the Fight For 15:
Myth 1: Raising the minimum wage will just result in all minimum wage jobs becoming automated.
Automation is going to happen whether the minimum wage is 15 or there is no minimum wage. The labor market is constantly changing due to improvements in technology, which is a good thing. While it is true some jobs are going to be replaced by automation, eventually, new jobs will spring up from the advancement in technology. For example, fixing the machines or programming.
Myth 2: Raising the wage will just result in higher prices.
A $15/hour minimum is unlikely to result in higher prices because most businesses directly affected by it are in intense competition for consumers and will take the raise out of profits rather than raise their prices. When prices go up people substitute cheaper versions of the product to save money. For example, if Pepsi goes up in price and Coke doesn’t, many people will switch to drinking Coke to save money.
Myth 3: Raising the wage would result in massive job loss.
They say this every time there is a proposed wage increase or workers right bill. The truth is A $15/hour minimum won’t result in major job losses because it would put money in the pockets of millions of low-wage workers who will spend it, thereby giving working families and the overall economy a boost and creating jobs. But because the higher minimum will also attract more workers into the job market, employers will have more choice of who to hire, and thereby have more reliable employees which results in lower turnover costs and higher productivity.
In 1996 when the minimum wage was raised, business predicted millions of job losses. The result was we had more job gains over the next four years than in any comparable period in American history.
The truth of the matter is that a $15 / hour minimum wage will boost Maryland’s economy by $2.6 billion annually and help business owners have more customers and lower turnover in employees, both key ingredients in helping businesses thrive.