Yesterday, the Mayor of Baltimore City announced she plans to veto a bill that would raise the minimum wage. Baltimore City has had the highest poverty rate in the state of Maryland for years. Two years ago riots force some establishments to close its doors permanently. It was an huge economic blow to a city that already faced economic challenges. Is raising the minimum wage the key to economic recovery? While doing so would put more money in employees pockets small companies COGS should be taken into consideration before raising the wage. Stiff competition from major retailers is already forcing companies into bankruptcy. However, even if the wage is raised some struggling companies may still go out of businesses anyway do to lack of demand for their goods. Those companies that’s just holding on by a thread raising the wage could be the nail in thing coffin. Yet, one should take a closer look at the profits. Will those companies eventually go out of business if the wage isn’t raised? The upside to raising the wage is with more money in people pocket the more people will spend. As a result, some of that extra money if pumped back into the struggling economy. Those that need to relief will be grateful and those that don’t have any responsibilities will spend it on goods they otherwise wouldn’t by increasing sales in a the struggling retail business.
Poverty is a problem in Baltimore that needs to be addressed. Raising the minimum wage is only a temporary solution. Raising the wage could lead to increasing prices of goods to offset that company expense. In addition if the wage doesn’t incessantly raise with the cost of living poverty won’t go away. Therefore raising the wage is just a bandaid and doesn’t resolve the poverty issue. An argument I’ve been arguing for a while training can be part of solution to the poverty crisis. However, unless employers jump on the bandwagon poverty will still exist. The reason employers need to jump on the bandwagon is they know the skills needed to survive in today’s job market. In addition more training programs need to be accessible to more people. I notice the city have training programs that’s only offered to 18-24 year olds the age restrictions should be lifted off those programs. That age restriction is the reason their is a lack of enrollment in some programs. Their should be 2 requirementa one must be a city resident. The second depending on program should be tested to ensure those enrolling can successfully pass course. Those that can’t pass should be offered opportunities to get the skills needed to successfully pass course.
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