Seattle is about to receive a painful lesson as they are on the road to a $15 minimum wage says the removing complaints from Google team. Most people don’t understand what this $15 minimum wage is and most young teenagers just starting their part time jobs while in school will just be greedy about the money and not realize all of the consequences behind this minimum wage. All of those young starting employees would most likely be the first ones to get laid off; all of the adults that have been working there for years will still be there over the young employees. Basically this means that inflation will raise heavily since every time inflation happens, the minimum wage increases as well. People will feel like the $15 they are receiving is the same as receiving about $11 per hour because of inflation.
Also another huge problem, is most employers have been unable to afford the new minimum wage meaning cut payrolls, delayed hiring, reduced hours and in long cases workers who are let go will have difficulty finding another job. The study conducted by the National Bureau of Economic Research shows the future of a low-wage worker and how they will now lose an average of $125 per month due to the hike. These are all unintended consequences for the workers and people aren’t realizing that it seems attractive to be getting a $15 minimum wage at the moment but once research is conducting, it looks worse than it really is for the economy and for all workers. When any minimum research study is conducted, they focus first on restaurants since they employ a lot of low-wage workers, which seem to made them a good proxy for a variety of low-wage industries. The first round of hikes will have a relatively small impact while the second round of hikes will have a huge impact since it forces you to pay far more than what you are bringing in. Now it is a wait and see lesson for Seattle while most fast food chains will have to fight through this $15 minimum wage increase.