Collegian Venues - your weekend starts here
  Collegian Chronicles



Get a deal with Daily Collegian Coupon Corner
  The Digital Collegian - Published independently by students at Penn State
News
[ Wednesday, Feb. 8, 1995 ]

Low wage debate affects local area

Collegian Staff Writer

After just two days of debate, President Clinton's proposal to raise the minimum wage by 90 cents over two years has the potential to become the leader of all partisan wars.

While most Democrats support the increase from $4.25 to $5.15 per hour, Republicans have unanimously voiced their opposition. Although the president has pleaded for bipartisan action, both parties are taking inventory of their argumentative weapons.

And the validity of claims on both sides of the debate is sure to raise the question of which side is correct.

James Stewart, professor of labor studies and industrial relations, said there are several different ways to look at a minimum wage increase.

"The classic response that we're taught in the textbooks is that when wages go up, employment has to go down," Stewart said, citing an argument in opposition to an increased minimum wage.

However, Stewart said a public policy perspective requires looking at whether low-skilled workers who make minimum wage can afford to live without public welfare.

Welfare is an issue that the president touched on when making his proposal last Friday.

"If we are serious about welfare reform," Clinton said in a news release, "then we have a clear obligation to make work attractive and to reward people who are willing to work hard."

Welfare has become particularly important to the minimum wage issue despite the recent increase in available jobs.

"Even though we've had substantial job growth over the last few years," Stewart said, "most of those jobs have been low paying."

While the multitude of low-paying jobs may be a reason to support an increased minimum wage, the problem of jobs decreasing after the rise in wages still exists.

John Urban, the State College Job Center manager, said the proposal is good for people who make minimum wage but may hurt other jobs.

Because employers are forced to pay more for low-skill jobs, Urban said they will be less willing to hire as many new employees as they normally would.

Despite the various arguments, most analysts support the president's proposal.

Frieda Rozen, assistant professor of labor studies and industrial relations and women's studies, said she believes an increased minimum wage is necessary.

"There are so many people in the country who are working full time and not earning enough to live on," Rozen said. About 60 percent of those people are women, she said, adding that a lot of women are supporting their families.

Stewart also said he agrees with an increase in the minimum wage, but he has some reservations about the president's proposal.

"I'm a little concerned with the rapidity with which he wants to push it up," Stewart said. A rapid increase, he said, could exacerbate an increased slowing of economic growth.

But because of the adverse effects of a minimum wage, increases are likely to hold true at any time. Urban said he supports an increase.

"One time," he said, "is as good as another time."



Send an Opinion Letter to the Editor about this article.


   





TOP  HOME
Blogs  About  Contact Us  Back Issues  Advertising 

Copyright © 2008 Collegian Inc.
Requested: Wednesday, July 23, 2008  5:11:21 PM  -4
Created: Wednesday, May 07, 2008  6:14:44 PM  -4