For years, the minimum wage in Nebraska was stuck at $9.00. However, according to Nebraska Public Media, in November of 2022, “Nebraska initiated a plan called ‘Initiative 433’ raising the minimum wage from $9 to $15 by 2026.” With this initiative, the minimum wage will increase by $1.50 each year, resulting in many students and part-time workers receiving the benefit. Although this may sound favorable to many, there are a lot of cons that also come with it.
At a glance, a minimum wage increase only brings benefits. An increase in minimum wage benefits low-wage workers, which leads to an economic boost due to increased consumer spending. Investopedia said. A minimum wage increase will be a boost to the economy. As part-time workers earn more money, it is only natural that the chances of them spending their income increase as well. More money spent will flourish the economy. And with more income, the overall standard of living will improve for minimum-wage workers. But many say that it hasn’t impacted them at all.
“It didn’t impact me at all because I got $12 before the increase, I’m still at minimum wage,” senior Jules Joens said
Furthermore, many cons also come with the increase in minimum wage. The biggest of them all is inflation. An increase in the minimum wage is usually the result of businesses increasing the price of their products. Raising the minimum wage results in wages increasing across the board, therefore increasing operating costs for companies, which ultimately increases the prices of products and services, Investopedia said. Increased price equals an increase in the cost of living, which negates all the benefits gained by minimum wage workers. When asked about her opinion on whether or not a minimum wage increase is evening things out, senior Reese Young responded with
“Absolutely not. I don’t think it’s making any better,” senior Reese Young said.
On top of this, many experts point out the fact that big corporations will likely fire minimum-wage workers to balance out their profits and losses. This leads to competition for jobs. Since companies will hire fewer people, employment rates will decline, leaving many people with no income. This is far from the result of what is expected out of a minimum wage increase, but this is the harsh reality.
The minimum wage increase has its pros and cons. It is hard to say whether the minimum wage’s impact on the economy is good or bad. It does, in fact, stimulate the economy, but at the same time, it also increases the price of goods. But does all this matter?
“ I think it should be raised to at least 15 or even 16.” senior Nishiki Hill said.
After all, high schoolers only care about how much they get paid per hour.
