By: David Rosa Da Costa

Maryland’s minimum wage increased to $15 an hour, affecting students and employees all across Maryland. This raise took effect on Jan. 1, 2024. This updated raise can impact our economic, social and business future.

The minimum wage was increased to meet expectations for the quality of living. Determining the minimum wage can be challenging as an increase affects employers and employees.

“A minimum wage will reduce employment in low-skilled jobs because it now costs more for employers to hire people. It also gives an inducement for employers to replace labor with Capital, that is, to replace workers with automation and somehow replace them mechanically, if that’s possible,” stated Mr. Prime, Mt. Hebron’s economics teacher.

These balances have been complex to derive, as seen in Washington, DC, with the once-booming restaurant industry. As the crime rate has risen, so has the minimum wage, leading to higher costs in food prices as well as less safety for customers. This has led to a diaspora of former restaurants contributing to the DC night scene.

However, the minimum wage allows employees to get better wages than they might receive otherwise. This can lead to discriminatory hiring practices since employers are picky about who they hire and might only hire people with work experience.

“A minimum wage job because it is low skilled, it is not meant to be a lifetime job, and it is not meant to be a job in which a person is supposed to feed a family of four off. Ideally, a minimum wage job is an entry-level job that enables somebody to get work experience and skills that they can then parlay into a higher wage later,” stated Prime.

Something important to look at is the effect on unemployment and people with low incomes in inner cities. It can help people with work experience, but it can fall short for those who don’t.

“Minimum Wage is dooming many of those young people that would like to get an initial job and get their foot in the door to not get a job at all. So, in essence, a minimum wage is going to cause more harm to young minorities in inner cities than it will almost anywhere else. So, in a way, a minimum wage is almost very discriminatory.” Prime stated.

The community actively recognizes the minimum wage; these new reforms to the minimum wage can lead to unpredictable consequences until we can analyze the results. However, the benefits and consequences of updated minimum wage reforms are placed on those minimum wage employees which the law stands to protect.