Is raising the minimum wage the right approach

[Joy_learns_crypto]

Seattle are facing economical crisis at the moment and several businesses, establishments and setups are facing very difficult times.
But According to this report Seattle is planing to raise its minimum wage to fight against this crisis.

But I don't completely concur to this strategy, the problem will be invincible if this is the approach they choose to follow, a big factor in any business closing up is the poor financial state to keep the business running increasing the minimum way that they businesses who are fighting financial battles can't meet won't solve the problem.

If this was a case of lack of interest in jobs or low manpower then an increase in minimum wage may solve that. It would be better to give out grants, low interest loans and support for local businesses.

[PostQuantumBTC]

Do not believe in only what you are reading in X, you can do more research. Seattle want to increase minimum wage just because of the usual reason countries are increasing minimum wage which is high inflation in a way that everything in the country is costly already and their fiat has fallen so much in value. Other reasons can be included but this is the major reason.

[Mrbluntzy]

If increasing minimum wage is part of the solution that they have come up with, I guess they have plans of also creating a balance because the increase of minimum wages will still create an extra cost and who is going to absorb these extra cost? Or are they still expecting that the struggling businesses and firms will absorb the cost? Although they can absorb it but it would mean that they are going to increase the prices of their services  and also reduce the number of workers that they have but that's also going to create a different problem. Imagine when there is so much lose of jobs again plus a lot of people that has already been dropped.

I still insist on what I already said, they have to come up with a method to create a balance because to increase the wages without finding a good measure that can help those businesses absorb the high cost of labor could end up causing another problem while they have not solve this one at hand. According to what I read, Mayor Katie has signed an executive order last month which will erect an economic task force that is going to help the small/local businesses to run effectively.

[Creeper0]

Seattle are facing economical crisis at the moment and several businesses, establishments and setups are facing very difficult times.
But According to this report Seattle is planing to raise its minimum wage to fight against this crisis.

But I don't completely concur to this strategy, the problem will be invincible if this is the approach they choose to follow, a big factor in any business closing up is the poor financial state to keep the business running increasing the minimum way that they businesses who are fighting financial battles can't meet won't solve the problem.

If this was a case of lack of interest in jobs or low manpower then an increase in minimum wage may solve that. It would be better to give out grants, low interest loans and support for local businesses.

We cannot comment properly on the solution without knowing the real problem. The country is already suffering from multiple problems, including inflation. Rising homelessness, increasing expenditure compared to income, etc. There are even business and budgeting complications. But we have not yet been able to get to know the problems of that country in depth, for the time being I have no choice but to support their decision.

However, increasing the salaries of employees is not enough to deal with the economic crisis in their country, rather they have to take steps in other areas as well. Along with the necessary steps to increase the budget, government expenditure must also be balanced.

[Judith87403]

I read that there's a drop in white collar jobs in Seattle because employers are cutting down their workforce. The problem with vast majority of people is that they depend so much on white collar jobs and working for someone instead of establishing their own businesses. In today's world, everyone needs to be business oriented and be creative enough to develop skills that can make you self-employed because if you depend too much on working for people in order to be paid salary, when the job terminates it will only throw you into a state of confusion. You must not be employed before you can earn a living. Even if Seattle increases their minimum wage, those that are currently working will be the beneficiary while those without a job will have to suffer their own fate.

[Merit.s]

If this was a case of lack of interest in jobs or low manpower then an increase in minimum wage may solve that. It would be better to give out grants, low interest loans and support for local businesses.

If the salary structure is poor and minimum wage is also poor, it will make workers forfeit their jobs and stay at home doing nothing but look for a means of survival even though, it's to do odd jobs. I believe that Seattle knows the problem of poor turn up to job opportunities which is why they believe that an increase in minimum wage can make citizens show interest to start working again.

My friend working in the government income is very low and due to the regular increase in inflation, his income could only take care of his transportation. He  left the job and started a security job where he was given accommodation in the private company.

[Mr_Brilliant$]

It seems their purchasing power has reduced drastically. That's one. But inflation too has caused this. How then is the government managing inflation? That's what's answering. Because purchasing power of a country can be affected by inflation. If you observe well, let's say the government increases minimum wages. Government is doing it's part. What about those that are business owners, will they be able to keep up with the minimum wages? Obviously it's not the government that helps them run the day to day activities of their business, so they bear the cost of paying workers the new minimum wage.

Increasing the wages is not bad. But inflation should not rise with minimum wages. At the end, it will still fall back to the same issue that the government is trying to solve.

[Makus]

Raising the minimum wage can be a right approach to fix the economy but this must go alongside with reducing the Inflation. In a lot of countries especially in Nigeria where there's been a demand from the masses to increase the minimum wage, although the government has been able to do this but nothing has changed in the country, as a matter of fact it only seems to get worse and the reason for this is because the cost of living doesn't seem to reduce, there is no point in increasing the minimum wage if the average man still can't afford basic things.

[Btcdeybodi]

Raising minimum wage when the economy is experiencing a decline will not solve any problems. Due to inflation, the fiat currency doesn't hold value anymore so no matter the percentage that a minimum is increased by, it won't still make any impact.

Instead of them to increase the minimum wage, why not they create more job opportunities and channel that money there. It will even make more sense because the labour force will increase again and people will get jobs again and continue earning. Everybody cannot start a business, because it's not everyone that are skilled in running a business and there's nothing wrong in preferring a white collar job to owning a business.

[The Founding Titan]

Do not believe in only what you are reading in X, you can do more research. Seattle want to increase minimum wage just because of the usual reason countries are increasing minimum wage which is high inflation in a way that everything in the country is costly already and their fiat has fallen so much in value. Other reasons can be included but this is the major reason.

It doesn't even make sense to raise the minimum wage because businesses are experiencing financial crisis, where's the logic in asking them to pay their workers more when they aren't even turning profit. While it might be included in the long list of reasons it's usually among the least of the reasons, battling inflation is a more reasonable cause though even countries that are not exactly in a bad place can decide the increase their minimum wage just because they want to improve the quality of living for their citizen, states and cities can do the same.

[New Judgement]

I read that there's a drop in white collar jobs in Seattle because employers are cutting down their workforce. The problem with vast majority of people is that they depend so much on white collar jobs and working for someone instead of establishing their own businesses. In today's world, everyone needs to be business oriented and be creative enough to develop skills that can make you self-employed because if you depend too much on working for people in order to be paid salary, when the job terminates it will only throw you into a state of confusion. You must not be employed before you can earn a living. Even if Seattle increases their minimum wage, those that are currently working will be the beneficiary while those without a job will have to suffer their own fate.

Those that don’t have white collar jobs are not entitled to benefit from the increase in the minimum wage directly at the moment, but it will be beneficial for them in the future if they get a job. It’s indeed a welcome idea to increase the minimum wage to boost the morale of the workers. Another thing you should know is that doing business requires money. Not that many workers love the idea of working for another person, but sometimes you need the job to save up money to set up your business. Running a business requires substantial amount. If you don’t have it you can’t start business. But do you ask yourself sometimes that if everyone have their own businesses, who will work in the big factories and industries?

[Pearl_20]

Raising minimum wage when the economy is experiencing a decline will not solve any problems. Due to inflation, the fiat currency doesn't hold value anymore so no matter the percentage that a minimum is increased by, it won't still make any impact.

Instead of them to increase the minimum wage, why not they create more job opportunities and channel that money there. It will even make more sense because the labour force will increase again and people will get jobs again and continue earning. Everybody cannot start a business, because it's not everyone that are skilled in running a business and there's nothing wrong in preferring a white collar job to owning a business.

I totally agree with you, i also think that they should call back companies that left, fill the office with the right people who are meant to occupy them, and just like you said employing the right people will bring more increase and raising the minimum wage will only sustain workers who are already working for a while but if there are no companies or workers even the minimum wage wouldn't solve the problem.

[lionheart78]

It is right to increase the minimum wage.  As the earlier reply stated, this increase is to combat the inflation that depreciates the purchasing value of fiat currency.

A yearly minimum wage increase should be implemented because the price of commodities keeps on increasing.  Imagine a person who rented a house has to swallow a certain yearly percentage increase, and yet his salary won't increase for years.

Aside from a wage increase, the government should also create job opportunities.  This way, people can have more sources of income and will be able to maintain their daily necessities and can save on top of that.

[DYOR+BTC]

Do not believe in only what you are reading in X, you can do more research. Seattle want to increase minimum wage just because of the usual reason countries are increasing minimum wage which is high inflation in a way that everything in the country is costly already and their fiat has fallen so much in value. Other reasons can be included but this is the major reason.

Uncontrollable inflation is a justifying reason why that plan of increasing minimum wage is acceptable but it should not only be limited to the increment but also work towards identifying the possible cause of inflation and controlling it so the increased minimum wage will be useful to the citizens if implemented.
It a nice idea considering the increment of minimum wage, but if the economy is not balanced and inflation controlled, that increased  money will not be  useful to citizens when paid.

[Cryptomultiplier]

Inflation is the only and substantial reason for increasing minimum wage and as it concerns businesses too, the best option is for government to offer grants and free guidance to businesses that are struggling to survive.
Besides this, I don't see any other way unless the government wants to pay part of the salary of workers to help struggling businesses, but only a few of these businesses can benefit from this if the goal is to combat inflation, unless the economy turns around and things start becoming cheaper to afford.

[Abu-Naim]

If this was a case of lack of interest in jobs or low manpower then an increase in minimum wage may solve that. It would be better to give out grants, low interest loans and support for local businesses.

Increasing the minimum wage will make it easy for the average citizens to afford their needs that is if their is price control, because without price control, the marketers will increase the prices of goods just because they see excess money in supply, and if that happens, it’s the same as doing nothing.

Government needs to come up with some certain strategies which include price control and also find a way to reinforce their economy because the minimum wage will not solve it alone, we will need to limit somethings so that things will not get out of hand because inflation is spiking against every plan of investment, it is very dangerous that’s why it’s good to have digital investment like Bitcoin to save you.

[Jostle]

We can take a look at a unique model pioneered by the small country, Singapore: https://linksinternational.com/en-sg/minimum-wage-in-singapore/. A quick summary is that rather than a single flat minimum wage, Singapore links mandatory wage floors to skills progression and foreign manpower controls to uplift lower-wage workers without hurting market flexibility. From the looks of it, the country has been rather successful in doing so, rather than relying on minimum wage, which, as many has pointed out, could lead to inflation if not done properly.

[snowpega]

Nope, only increasing the wage rate directly, without any backup and government effort or work, can increase the inflation rate, which can damage the country's economy. Before increasing wages, the national government should take important steps to ease production industries so that they can provide supply to distributors at a lower price. Then, further distributors can make more money and will easily be able to pay whatever new wages the government announce.

For now, in my point of view, the government should try its best to bring oil, gas and electricity prices to lower points. Because the cost of production is highly tied to these three things. So, if factories and industries get whatever they need at lower prices, they can further sell it at lower prices. This will make them able to pay higher wages after all costs in an easy way. This is my point of view. What do you think about it, guys?

[Proty]

I think it is not just about increasing wages that is important but rather looking at the reason why businesses isn't growing as they should. By increasing minimum wages cost of living may reduce and this will be of help to workers but for small business that aren't doing well , high cost of labour can also be challenging to deal with. Apart from increasing of minimum wages there should be other forms of aid such as loan with low interest, tax relief and grant as the OP mentioned. By so doing those workers that own small business can be able to benefit from better wages because they won't put much pressure on the business that is already struggling to survive.

[Y3shot]

Increasing the minimum wage is a good step, but I guess the government is also making plans on other things that will boost the economy. If the government is not making plans to generate income, it can also affect them because they will find it difficult to pay the salaries of workers. However, if the government already has plans for this, then an increase in the minimum wage is good because it can enable people to spend money, which will have a positive effect on the economy. When the minimum wage is low, people won't be able to afford some things, and this will affect businesses and also the government.