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.