Minimum wage. It's not the most exciting topic to discuss.
Yet it's likely this topic has affected many of us at Ball State University. Maybe you were paid the lowest federal amount while slinging burgers and fries in high school. Maybe you are paid that amount at your desk job at Ball State.
A new study from Ball State's Center for Business and Economic Research says the final 2009 increase to $7.25 — up from $5.15, the wage before 2007 — led to the elimination of 550,000 jobs during the recession. That's not a nice figure to hear, but it's not exactly unexpected either. Instead of filling open positions, employers made due with the workers they had.
It's unfortunate because the most obviously hurt people in this equation are low-skilled workers — meaning students and workers without a higher education.
However, the study was conducted using part-time worker statistics from the Bureau of Labor Statistics from the last 10 years. It does make sense that part-time workers would be the ones laid off, or part-time openings remain unfilled, during a time of economic upheaval. But people, whether young adults or adults, still need money to pay bills.
The argument in favor of minimum wage is also simple: If businesses didn't have to pay workers a specific wage, they'd get away with abusing the system. People deserve to be rewarded for the work they do, whether it's selling clothing, cleaning bathrooms or scooping ice cream. Because someone else makes a profit in some way from that work.
In 2009, the wage increase finally made it possible for two parents working full-time for minimum wage, while supporting two children, to make an amount ($30,160 before tax) above the federal poverty level ($22,050). Back in 2007, the same family would have made $21,424 before taxes were taken out — that's barely above the 2007 poverty level of $20,650.
The reality of raising minimum wage can hurt. Businesses — especially small businesses — don't magically get more money to pay people. The result: They have to cut hours or people to make a profit. At Ball State, the minimum wage has a similar effect. Departmental budgets didn't increase when wages did, resulting in student workers' salaries staying stagnant or hours being slashed, in some cases.
The minimum wage rate increase was a good thing. Those putting time and effort into a job do not deserve to live in poverty. Neither do their families.
We may never know which was more of a catalyst in unemployment increases: the recession or the wage increase. Unfortunately, it's a double-edged sword.
Read More
IPR: Indiana Democrats discuss party’s future during Muncie town hall
By Indiana Public Radio / 8 minutes agoIndiana Democrats gathered at a town hall in Muncie Saturday to spotlight the long-term effects of state and federal Republican policies. As IPR’s Thomas Ouellette reports, Democrats discussed Indiana’s property tax overhaul and the future of the state’s party.
IPR: Advocacy groups, college student sue Indiana over new law banning student IDs at polling places
By Indiana Public Radio / 2 days agoTwo voter and civic advocacy groups and an Indiana University student are suing the state over a new law that bans the use of student IDs for voting. The suit alleges the SEA 10, signed into law last month, “severely burdens” young people’s ability to vote without any justification.
Public invited to update on The Village revitalization plan
By Ball State Daily / 2 days agoPresident Mearns will host a public update on Ball State's revitalization plan for The Village at 6 p.m. on Wednesday, June 4, at Cornerstone Center for the Arts in the Legacy Room on the third floor. Parking is available in Cornerstone’s lots off Washington Street. The event will offer the latest on Ball State’s plan to revitalize The Village.
