The Democrats in Washington wasted no time raising the federal minimum wage. Speaker of the House Nancy Pelosi said that it was one of her top priorities when the 110th US Congress convened and it was.
If signed into law, the minimum wage would increase to $5.85 per hour 60 days after it is enacted, then increase to $6.55 per hour 12 months after that and finally increase to $7.25 per hour 12 months after that.
Now economists are scratching their heads and trying to see if this will help the lower class, blue collar Americans as much as the Democrats claim it will. They are also trying to find out whether or not this will be a crippling to small businesses who rely on a fair minimum wage in order to stay in business and stay competitive.
Seeing as how a large number of Ball State University students work at a variety of small businesses, it definitely affects us. Many of us, even if not at this time, have worked at minimum-wage jobs.
When I worked for minimum wage throughout high school, I certainly felt that the minimum wage should be raised. I was unaware of the incredible ripple effect that a raise in the minimum wage has on our economy.
When you raise the minimum wage, you do so to make sure that everyone can afford the basic necessities of life. I most definitely agree that it is good to have a strong minimum wage. When people can make a livable wage, it takes a lot of pressure off charities and welfare to support the poor of society. Everyone is entitled to making a wage with which they can raise a family. It is important that the government makes sure businesses properly take care of their employees.
Where I am worried, though, is when the minimum wage goes all the way to $7.25, a chain reaction will come on that will hurt small businesses. When the minimum wage is raised $2 at a business that pays minimum wage, it raises the total expenses of employees working at minimum wage by $80 a week for a 40-hour week. This is simply more than most small businesses can afford.
I feel the only way to make sure that the poorer people of this nation are taken care of is to look at inflation. The minimum wage should be tied with inflation. If it costs one dollar more to buy a loaf of bread this year than it did last year, every person who works hard for a living should always have that extra dollar.
A number of states have minimum wages that are not in line with the federal standard. This came about under President Bill Clinton. Expenses vary greatly around the country, and seeing as how prices vary around the nation, wages should as well.
The minimum wage is a very complicated issue. It is important that the men and women of the working class are always able to care for themselves. Hopefully the actions of Nancy Pelosi and the rest of Congress will see that everyone can make a living while ensuring everyone can stay in business.
Write to Alex at apcarroll@bsu.edu
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