Should We Have a Minimum Wage Here in the United States?

Should the government decide the minimum amount an employer must pay an employee, and how high should that minimum be?

The United States has had a federal minimum wage for decades, and today it remains $7.25 per hour. Many states have established substantially higher minimum wages of their own.

I understand the reason for having a minimum wage. Workers should be protected from exploitation. But I also believe we need to ask what happens when government continually raises that minimum and whether those increases ultimately accomplish what we want them to accomplish.

What Is a Minimum-Wage Job Supposed to Be?

This may be where my opinion differs from some people.

I don't believe every minimum-wage job was designed to support a family for an entire lifetime.

Many entry-level jobs can provide teenagers, students, retirees and people entering the workforce with an opportunity to earn money, learn responsibility, develop skills and gain experience.

Your first job doesn't have to be your final job.

For a young person especially, I believe the goal should be to learn, improve your skills, accept greater responsibility and make yourself more valuable in the workplace.

With increased value should come increased income.

California Shows How Quickly Minimum Wages Can Rise

California is a good example of the direction some states have taken.

California's statewide minimum wage is $16.90 per hour in 2026, and it is scheduled to increase to $17.40 per hour on January 1, 2027. Certain industries and local governments have even higher minimums.

That is quite a difference from where California was just several years ago.

In 2017, California's minimum wage ranged from $10 to $10.50 depending on employer size. By 2023, it had reached $15.50 statewide. It increased to $16 in 2024, $16.50 in 2025 and $16.90 in 2026.

That is the quick upward trend I'm talking about.

What Happens When Labor Costs Increase?

This is where I believe we need to look beyond the employee's paycheck.

Imagine a fast-food restaurant that suddenly has to pay significantly more for its entry-level workers.

It isn't only those workers whose wages matter.

What happens to the experienced employee who was already earning more? What about the shift supervisor? Assistant manager? General manager?

If an entry-level wage moves substantially higher, businesses may also face pressure to increase wages further up the ladder.

Where does that money come from?

Businesses have several choices. They can accept lower profits, increase prices, reduce expenses, become more productive, automate certain jobs, reduce staffing—or use some combination of those options.

That is why I don't believe we can discuss wages without discussing the cost of doing business.

Does Raising the Minimum Wage Automatically Cause Inflation?

I wouldn't make the claim that every dollar added to the minimum wage automatically creates an equal increase in prices. Economics isn't that simple.

Businesses react differently.

Some absorb part of the additional cost. Some increase prices. Some find ways to become more efficient. Some reduce hours or hiring. Others invest in automation.

My concern is that when government requires businesses to absorb substantially higher costs, we shouldn't assume those costs simply disappear.

Ultimately, somebody has to pay them.

What About Taxing Businesses and Wealthy Americans More?

I hear a similar argument when people say we should simply tax businesses or wealthy Americans more.

Again, I believe we need to look at the entire economic chain.

Companies have owners and shareholders who expect a return on their investment. If taxes or operating expenses increase, companies can respond through prices, investment decisions, employment, expansion plans and other changes.

That doesn't mean businesses shouldn't pay taxes or that wealthy Americans shouldn't pay taxes.

They should.

My concern is reaching a point where government policies reduce the incentive to invest, build businesses, take risks and create jobs.

A healthy capitalist economy needs people willing to take those risks.

How Much Control Should Government Have?

For me, the minimum-wage discussion is actually part of a much larger question:

How dependent do we want to become on government?

Government has an important role.

We need reasonable laws. We need worker protections. We need safe buildings. We need infrastructure. We need police, firefighters and many other public services.

But there also comes a point where excessive regulation can make it harder for individuals and businesses to accomplish ordinary things.

We've seen debates over rebuilding after California's devastating wildfires illustrate this tension. Homeowners want to rebuild quickly, while state and local governments must address permitting, safety, environmental requirements and infrastructure. In my opinion, government should protect reasonable standards without creating unnecessary red tape that prevents people from moving forward.

I Believe in Personal Responsibility

This is really where my position comes from.

I believe strongly in capitalism, opportunity and personal responsibility.

If someone starts at minimum wage, I don't look down on that person. Quite the opposite.

You have to start somewhere.

Learn everything you can. Show up on time. Work harder. Become dependable. Learn another skill. Take on responsibility. Look for the next opportunity.

And when you've learned everything you can from one position, have the courage to move forward.

I don't believe our goal should be making people increasingly dependent upon government to determine what their future will look like.

I believe we should create an economy where people have opportunities to improve their own future.

I See It in My Own Business

I'm in real estate.

Nobody guarantees me a paycheck simply because I showed up for work.

I have to work. I have to find clients. I have to continue learning. I have to provide value. And I have to earn people's trust.

At the end of the day, I have to put food on my own table.

There are good months and difficult months, but I believe there is tremendous dignity in knowing that my effort, decisions and willingness to work have something to do with the outcome.

That is part of what I believe America has historically offered people: opportunity—not a guarantee of equal outcomes.

So, Should America Have a Minimum Wage?

I understand having a reasonable minimum wage as a basic protection for workers.

Where I have concerns is continually increasing that wage while acting as though there are no consequences elsewhere in the economy.

Higher wages sound good—and sometimes they are good.

But we also need affordable food, housing and services. We need businesses willing to hire inexperienced workers. We need opportunities for teenagers and young adults to get that important first job. And we need entrepreneurs willing to invest their money and take risks.

For me, the question isn't simply, “How high should we raise the minimum wage?”

The better question is:

How do we create an economy where someone doesn't have to remain at minimum wage?

My Final Takeaway

I believe in giving people an opportunity to work, learn and build a better life.

Government should establish reasonable protections, but government cannot replace ambition, education, responsibility and hard work.

My hope is that we continue building a country where the person starting at the bottom has every opportunity to climb—and where success comes from what we're willing to learn, build, risk and earn.

Michael Nobles
CrossView Realty