MLA Minimum Wage Increase in Portland Oregon

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Minimum Wage Increase in Portland Oregon
Raising the minimum wage has been an issue of great concern in the United States.
Since Mc Donald’s employees protested for a minimum wage increase to fifteen dollars per
hour in the last years, there has been a lot of concern and disagreements between the
government, the employers and the employees. On March 2, 2016, Oregon’s governor Kate
Brown signed into law a minimum wage bill. This was the highest base wage bill ever in the
History of America. This bill consisted of three wages and increment schedules that mainly
depended on the area’s population and the nature of business in Portland. The bill proposed
an increase of the wages to $12.50 in rural areas of Oregon, $13.50 in the mid-size regions
and $14.75 in urban areas of Portland. These increments were all to be enacted by 2022
(Beleiciks). This bill, however, faced stiff rejection from the opposing Republican Party who
said that passing the bill into law was rushed without proper thought and considerations.
They said that the country’s economic analysts were never given a chance to evaluate the
condition and give necessary advice on the way forward.
It is proposed that if the government had increased the hourly minimum wage to $15
and linked it to the cost of living, most of the states in America would have undergone a
major economic boost (Beleiciks). Currently, most employees in Oregon make less than $10
per hour. For this reason, many workers are living below the poverty line. Consequently,
even though the minimum wages are not the living terms, many Americans are trying to
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survive on them. This problem would not be as extreme as it is now if the wage bill had been
indexed to inflation since the 1950s. It is estimated that if 1968’s wage bill had been indexed
to inflation, the current minimum wage would be $11 which would be better as compared to
the current $7.25.
Additionally, all Americans living in Oregon who work full time should not be living
under poor conditions. This is because the effort put in as a full-time employee should reflect
in the minimum wage per hour. The problem of a low minimum wage leaves the question of;
if the better full-time jobs don’t give workers a chance to leading good lives, what of those
who work for few hours a day in the lowest paying jobs? It is evident that they are
languishing in poverty even though they report to work daily like other workers.
Oregon’s Senate President Peter Courtney disagrees with the $15 minimum wage
saying it is too high and unreasonable. This is against the needs of the employees who say
that the administration is just playing a game to reduce the minimum wage further rather than
increase. Protestors argue that cities, for example, Seattle have increased the minimum wage
to $15. Multnomah County and Portland City, on the other hand, have voted in a $15 per hour
minimum wage. In 2002, Oregon voters approved a bill to raise the minimum wage from
$6.50 to $6.90. Since then, Oregon has had a gradually increasing minimum wage of $9.25
behind Washington’s $9.47 (Beleiciks). Over the years, however, due to the rising cost of
living, other states have surpassed Oregon’s minimum wage.
Supporters of the minimum wage increase need Oregon to improve its minimum wage
so as to bring the low-income earners above the poverty line. Economic analysts, on the other
hand, argue that this will have far-reaching effects on the economy of the state. This is
because employers may not be in a position to spend so much money on payroll. They say
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that if the government increases the minimum wage to a very high level, it will drive the costs
higher than most businesses can afford.
Although increasing the minimum wage may help in improving standards of living of
the low-income earners, it will have negative effects on Oregon’s economy. First, the levels
of unemployment may increase. This is because the employers will have to do away with
some of their low-skilled workers in order to afford the salaries without reducing inputs in the
business. They may also reduce the hours given to each worker in an attempt to reduce their
daily salaries. On this note, instead of improving the standards of living of the workers,
minimum wage increase will reduce the survival ability of many people.
Minimum wage increase may lead to increased prices and overall effect on the poor
people. The affected firms will try to compensate the high wage bill by hiking the prices of
their goods and services to their own customers. This brings about the question of whether
increasing the minimum wage is a way of assisting the low-income earners or not. An
increase in the prices of commodities may mostly affect the low-income earners who besides
receiving very low salaries will be forced to part with their money to pay for the hiked prices.
Significantly, increasing the minimum wage may not be the solution to the poor living
conditions and poverty in Oregon. The state’s administration should balance between
increasing the minimum wage and the effect it may have on the workers and more so the low-
income workers. Although workers may enjoy the high wages, they may be on the other side
affected by the hiked prices of commodities.
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Works Cited
Beleiciks, Nick. “Oregon’s Minimum Wage Increases on July 1, 2017.Oregon's Employment
Department Journal (2017): 8-11.

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