Recently, the United States House of Representatives voted to increase the minimum wage standard of $5.15 per hour by $2.10, bringing minimum wage to $7.25 per hour. This is the first increase of its kind since September 1997. To most Americans this may seem like a great idea, but there are those in Congress who seem to think that giving poor people money is a bad idea. Most House Republicans said increasing minimum wage would decrease jobs, encourage outsourcing, etc.
In my opinion, it’s hard to outsource cleaning hotel rooms, changing bedpans in hospitals and changing someone’s tires. As Rep. Rob Andrews (D-NJ), said, “This is a victory for these people.”
What Rep. Andrews said is true, but at this time we must be cautious in our approach to the new wage. Some say this increase will destroy small business. The Senate has already decided to provide tax breaks for small businesses to offset the wage increase.
The reason I say we should remain cautious is grounds for another debate all together, but the bottom line is if the hiring of illegal workers is not ceased, this wage increase could effectively destroy the jobs of hundreds of thousands of American workers.
Some employers don’t care about their employees and forget the fact that they effectively have someone’s life in their hands. These employers are more concerned with their profit margins rather than doing what is right and just.
This legislation is not to hurt small business but rather embrace our workers. What this legislation does though is reign in profits of huge companies like Wal-Mart. Wal-Mart is a perfect example of a corporation abusing the federal guideline of minimum wage.
True, some states have higher minimum wage rates, and Wal-Mart stores in those states have to comply with the laws, but other states only comply with the federal minimum. Wal-Mart’s multi-billion dollar profits are largely based on the fact they pay people so cheaply. Other companies have used this tactic to great success.
On the other hand, there are people out there who don’t even deserve minimum wage. We’ve all seen them. This increase isn’t to line the pockets of slackers, but for the person that is trying to make it on $5.15 per hour.
We as college students should be rejoicing. This means everyone who works on campus could get a pay raise, albeit the full increase would not take place for two years. Minimum wage would begin its increase by going up to $5.85 an hour 60 days after the law is passed, if it passes.
This will mean a lot to college students. Most students depend on a part-time job to get by or at least have spending money. Students are one of the larger demographics that is paid minimum wage. I think we’re one segment of wage earners that the legislators have forgotten about. The 18-to-24-year-old group is the most heavily solicited by advertising. Meaning, whenever Nike, Apple, McDonald’s, Target or Capitol Records advertise a product, they are going to package and promote in a fashion pleasing to our generation.
So, by giving us an extra $2.10 an hour, you are thereby increasing our buying power. Meaning more iPods, Air Jordans and Big Macs are going to be bought. Which, in this time when our economy still can use a boost, is great.
The per capita spending of our age group is $13,000 per year and $122 billion dollars per year total. Of our $122 billion, $24 billion is “discretionary spending” – meaning in no certain terms, we blow it. This is not something I have seen or heard any of our legislators talk about, but it could in fact be one of the single most important reasons we should pass minimum wage.
Facing facts, a minimum wage of $5.15 per hour was never realistic even when it was passed in 1997. It has taken 10 years for lawmakers to see this. The people that live on this wage don’t have high-paid lobbyists or huge political action campaigns bringing attention to their plight. They just go to work every day and do what they can.
We got out of the Great Depression by putting people to work. It didn’t matter if they were building the Hoover Dam or a bridge in a National Park, people were working and getting paid. Trickle down economics cannot help these workers in real life. The only way you can initiate change for them is pay them what an American needs to live.
One last thing to point out: an individual working a 40-hour week on minimum wage stands to make about $10,000 per year. Poverty, according to the government, begins below $9,000. I could not even imagine trying to survive on that, much less even have one child to support on that income.
Congratulations to the House of Representatives for trying to do what is right for Americans. The people who are affected by this aren’t going to be able to donate millions of dollars to their parties or campaign funds, but I know many people feel like their government is governing (finally) “of the people, by the people, and for the people.