On January 1st 2020, minimum wage, in New Mexico, was increased from $7.50 an hour to $9 an hour. New Mexico plans to continue raising this by $1.50 every year until they reach $12 an hour in 2023. This will affect many businesses in the state, because they’re having to pay their employees a lot more than before. It may not be a problem for big businesses, but it may heavily affect small businesses. This could lead to lower employment rates and raised prices, but it would benefit the lives of employees by making the economy run smoother. Therefore, the increase in minimum wage will positively affect workers in New Mexico.
Many businesses will struggle due to the increase in minimum wage. They’re going to have to pay their employees more than before. It will keep increasing until 2023. Where they’re having to pay their employees $12 an hour. This will be very difficult on small businesses, because they most likely don’t have enough money. which will eventually lead to employees being laid off. It could also become more difficult to find a job, because businesses are having to pay more.
According to U.S Bureau of Labor Statistics, “79.9 million workers age 16 and older in the United States were paid at hourly rates, representing 58.7 percent of all wage and salary workers.” Teenagers make up a lot employees who earn minimum wage. A lot of teenagers don’t need a job, but they get one to get the things they want. Some teenagers work minimum wage jobs, and try to support themselves and their family. The increase in minimum can either benefit or make things harder for those people.
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If prices of businesses go up, then it could also be more difficult on citizens. They’re having to pay more for food, and other things. It could also make families already struggling to support themselves’s lives more difficult. Bigger families would have it harder than smaller families, because they’re having to feed, clothe, and take care of more people. If prices go up, then they’re having to spend way more than smaller families. It may not be so difficult now, but when it’s increased to $12 an hour, these problems will most likely come into affect.
The concept of increasing minimum wage is not new. According to Farmington Daily Times, “A total of 29 U.S. states have enacted a minimum wage law that exceeds the federal standard, and dozens of cities or counties have enacted a local ordinance of their own, some of which more than double the federal figure.” In 2020, 24 states are raising minimum wage. Twenty of them raised it on January 1st. The federal minimum wage was set in 2009 at $7.25 an hour. Many states plan to raise it to $15 an hour. Currently, Washington D.C has the highest minimum wage at $14 per hour. California, Massachusetts, and Washington have the highest state minimum wage at $12 an hour.
It will affect workers positively, because they will receive increased income. According to Rachel Moskowitz, Bureau Chief, “In 2017 nearly one in five New Mexicans (19.7 percent, or about 401,755 persons) lived below the poverty level.” Compared to that, the national average is 13.4 percent. New Mexico has the second-highest poverty rate as of 2017. It also has the second-highest poverty rate of children under 18. Poverty is a big problem in the state. Increasing minimum wage would increase income for people and families living in poverty, which could possibly result in less poverty. Although, employment rates could be lowered, and prices may go up, the lives of workers will be highly benefited, because they’re making a lot more than before, and it will help those that are living in poverty.
Many minimum wage workers have two minimum wage jobs to support themselves. With the increase in minimum wage it could reduce stress, and people can work less hours earning the same amount. With employees less stressed out, they would be working harder and more efficient. It could also help businesses wanting more employees, because people who wouldn’t want a minimum wage job might want one due to the increase in pay. Another positive of minimum wage is it increases worker productivity, because they could work less hours and make the same amount. If businesses are un-employing workers, than they would work harder to keep their jobs.
There is many positives to increasing minimum wage, but there’s also some negatives. According to the Orange Country Register, California is one of the few states that doesn’t count tips toward a workers income. With California’s minimum wage increasing, it’s creating a problem, because it’s causing restaurant owners a lot of money and leading to unemployment. The Orange County Register also states that in Los Angelas County, year-over-year full-service employment growth was at 7% in 2012. It’s been decreasing since, and was at 0% in 2019. When Seattle raised minimum wage, the workers had lower earning due to the less hours they worked. According to Mitrefinch, “workers reported cuts in their earnings of up to $125 per month due to reduced working hours.”
In conclusion, the increase in minimum wage will positively affect workers in New Mexico. Many businesses will be affected, because they’re having to pay their employees more than before. It’s also better for families living in poverty, because they’re getting paid more to support themselves, and their families. It would be a great solution to solve New Mexico’s poverty problems. In California, some businesses face problems, and are having to lay off some of their workers. In Seattle, workers earnings have dropped, because they reduced their hours due to the drop in minimum wage. In order to maintain business, some businesses will need to raise prices and lay off workers. There are some negative effects, but overall it’s very positive.
