The Badger Herald: Opinion: Minimum wage increase neglects reality

Opinion

Minimum wage increase neglects reality

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By James Sonneman
Thursday, February 12, 2009 9:54 p.m.

8 Vote 0 Votes

George Orwell was a staunch supporter of the labor movement. He lived as a vagrant in London, climbed into coal mines and fought for the Communist farmers during the Spanish Civil War. He also said, ironically, “as with the Christian religion, the worst advertisement for socialism is its adherents.” When the state Senate passed a bill Tuesday proposing to raise minimum wage from $6.50 to $7.60, Orwell’s observation gained weight.

I like to consider myself a moderate, a centrist grounded in balanced observation. Really, I am in all likelihood a liberal crazy (someone who is rationally liberal, but crazy for some other reason entirely). And, though I believe in minimum wage, I don’t necessarily understand the timing of this proposal. I probably paid too much attention in micro-econ and swallowed some of the free-market Kool-Aid.

I guess the best question is: Why increase the minimum wage now? With the unemployment rate rising, why make it harder for businesses to take on new employees?

Republicans claim this increase will put people out of work and hurt companies that don’t have the money to pay higher wages. In 2009 America, companies paying their workers a mere $52 a day probably deserve to be hurt. But, the working people put out of work, or currently looking for work, are a different matter.

Perhaps the laborers who get to keep their jobs will ride out this current economic storm with less turbulence, but those without employment will be left stranded. How will we address their predicament? A $5.7 billion budget shortfall is not a good place to start when trying to build a safety net. Breadlines, unemployment queues, and foreclosures are becoming more commonplace in America’s cities and towns. People need to have jobs to address this and raising the minimum wage will do more harm than good.

On the issue, Senate Majority Leader Russ Decker said, “Either you stand with your friends and neighbors, or you stand with the big corporations.” This type of rhetoric proves Orwell’s point. Since the proposed minimum wage increase accomplishes nothing to treat the wounds of this recession among your unemployed friends and neighbors, where exactly does one stand with them?

Do not forget minimum wage, however. It is a sort of “economic justice” practiced by over 90 percent of countries worldwide. In 2004, even The Economist reported that its negative effect on the job market was exaggerated by previous laissez-faire economists. When people who want to work are employed, is it not certain that to ensure a decent wage for a good day’s work is only fair?

In 2004, I received the minimum wage of $5.15 an hour while working at McDonalds. Seeing a minimum wage paycheck after working full-time for two weeks in a greasy assembly line while Maroon 5’s “This Love” repeats itself over and over again, broken only by the cry of ketchup-stained babies was disappointing to say the least.

Come July, the proposed increase will put Wisconsin’s minimum wage 35 cents higher than the Federal minimum. Whether Wisconsin should hold itself to a higher standard than the Federal government is another debate. Gov. Jim Doyle should block this particular piece legislation from becoming law.

Essentially, increasing minimum wage is a fair idea in good economic times, when Wisconsin can afford to lose a few jobs by closing the wage gap. Right now, we should be more concerned with pulling this state out of the recessionary muck. There are means other than price-flooring to ensure that workers get a decent life, investment and accountability in public education is certainly one of them.Wisconsin should not shortchange its workers, but now is certainly not the time to shortchange those without jobs.

James Sonneman (sonneman@wisc.edu) is a senior majoring in political science.

8 Comments | Leave a comment

Anonymous | February 13, 2009 7:16 AM | Reply
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James,

Find an economist now before your defense of the race to the bottom is complete. Marginal propensity to consume, young man.

Anonymous | February 13, 2009 1:00 PM | Reply
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Higher wages = more tax revenue. That’s the defense of Wall Stree-style paychecks.

Jim Allard | February 13, 2009 3:43 PM | Reply
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“When people who want to work are employed, is it not certain that to ensure a decent wage for a good day’s work is only fair?”

Fair? Fair to whom? A fair wage is one that’s agreed on by both the employer and employee. Forcing an employer to only hire employees worth X-dollars and prohibiting those worth less from entering the job market, as minimum wages do, is hardly fair.

“Essentially, increasing minimum wage is a fair idea in good economic times, when Wisconsin can afford to lose a few jobs by closing the wage gap.”

Wisconsin can afford? Wisconsin doesn’t need a job; only individuals need jobs. Who’s job are you going to lose for them? Who are you to decide they can afford to lose their job?

Anonymous | February 13, 2009 4:03 PM | Reply
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How about this:

If Wisconsin legislators want to increase their own salaries, they have to increase the minimum wage by the same proportion. If politicians want to look after their own self-interest, they won’t be able to continue to ignore the interests of those workers for whom far too necessary cost of living pay increases are least likely to be delivered.

Anonymous | February 15, 2009 8:17 AM | Reply
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“prohibiting those worth less from entering the job market, as minimum wages do, is hardly fair”

Did you hear this on the Limbaugh Comedy Hour? Do you know how little “minimum” will buy for you? There aren’t people worth less than minimum, that’s the point. Well, unless you’re talking about slavery, and we all know how popular that is.

Let me get this straight, you’re pro-slavery, right?

Anonymous | February 15, 2009 2:42 PM | Reply
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“There aren’t people worth less than minimum”

There absolutely are people who are worth less than the minimum. There are people who make a minimal if not negative contribution to an enterprise.

Anonymous | February 15, 2009 7:23 PM | Reply
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If there were people worth less than the minimum then they would likely be the most disadvantaged members of society. Thus by preventing them from getting jobs you are stopping them from getting any work related skills or job training that will allow them to gain access to higher paying jobs. Minimum wage laws only serve to hurt the people who are worst off.

Anonymous | February 16, 2009 2:37 AM | Reply
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I think we need a fact check on “over 90 percent of the countries” i find it hard to believe that 90% of the countries in the world have minimum wage laws that are actually observed. That would put Wal-Mart out of business.

Also, I find it ironic that debates over minimum wage and job loss are being discussed here by most likely well off, or at least not impoverished college students. Its easy to ignore parts of an important issue when you are distanced from it.