Why Raising Maine’s Minimum Wage to $8.50 is a BAD IDEA

When I was thinking about what to write today, I saw this breaking news item: Maine wants to raise the minimum wage from its current $7.50/hr. to $8.50/hr.

Now, of course, some may be saying “big deal”. However, this little cost could add as much as a few hundred dollars every week to payrolls that are already stressed in this weak economy. Doesn’t anybody think that this will lead to more cutbacks in jobs and possibly higher unemployment?

Another downside to this is that some employees who have been with a company for a while will see absolutely NO change in their wages so those workers will have less of a pay gap from their fellow employees.

I saw this happen during my time at both Woolworth and Staples. It seemed that new employees and recent hires were aggressively getting more money than I was. Not that they surpassed me, but their gains were much more accelerated and it was troubling that they should get increases when I didn’t.

This brings me to my point: With so many companies like penny-pinching losers like Staples give out raises that are usually under 25 cents, why would they ever want to see an increase of a $1 to their part-time employees and their remaining new full-time employees?

Also consider wait staff at restaurants. These people would also see a boost in their minimums just to make it to that level if they don’t get the money in tips. I see the strong possibility that food prices at restaurants will go up substantially to compensate for the difference, as if things like Obamacare won’t cost companies more than companies can afford.

Overall, I am all for the increase, but it is a business killer and may force some companies to not hire new employees. This is just another excuse for companies to keep huge profits and screw the employees just like Staples does.