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Missouri lawmakers bring up idea of raising minimum wage
Missouri lawmakers have proposed a bill that would, if enacted, raise the state's minimum wage from $5.15 to $5.70 per hour, and it doesn't end there. The proposal by state lawmakers would raise the minumum wage to $6.50 per hour as of August 2007.
The minimum wage in Missouri has remained at $5.15 since 1997, which was the year the last federal adjustment took effect.
"In order for Missourians to be self-reliant, they must first be afforded a decent wage." said State. Rep. John Bowman D-St. Louis. "It is the humane thing to do and in the long term reduces the need for government assistance as more Missourians are able to make a living."
Seventeen states, including the District of Columbia; already have minimum wages higher than the federal wage floor, including neighboring Illinois where workers are guarenteed at least 6.50 an hour.
Washington state tops the nation with its $7.63-an-hour-minimum.
Representitive Barney Fisher, R-125th District, said of the wage increase notion, "In the history of minimum wage, Missouri has never exceeded the federal minimum wage. It is way too early to predict or judge the bill just yet. It is so new that buisness and labor organizations haven't adopted positions."
There's much debate about the possible impact of such a change, especially at the state level.
According to Pittsburg State University professor of economics Charles Fischer, Ph.D., debating the pros and cons of minimum wage is never an easy issue.
Minimum wage was enacted in the 1930's and at that time the allotted wage for the average unskilled laborer was 25 cents per hour. At that time, though, those at minimum wage had more "purchasing power," as Fisher said.
The general rule in American society is that you are paid what you're worth, according to Fisher, and the problem with unskilled labor is that they are unskilled. "Raising the minimum wage is not targeting poverty, the problem is your only treating a symptom as opposed to solving an issue." said Fischer, "I am not against raising the wage, but rather increasing a workers value through education and training."
Typically, raising the minimum wage would excite those who are affected by it but Fischer guesses that "some companies will cut back on hours and people will end up actually earning less."
Currently there is an incentive in the world of economists to substitute capital for labor. For example, a machine that is designed for lifting and sorting packages in large warehouse is cheaper for the company then paying a force of laborers to do the same job.
Economists say that the only way to satisfy a workers need in the job market is to increase his worth.
According to Dr. Gary Lunkenheimer, Ph.D., of Cottey College, opponents of minimum wage believe that it affects high school drop out rates as well as giving extra cash to mainly middle class teens who don't depend on minimum wage for their living expenses.
"You wonder if it's going to work out in the long run." said Lunkenheimer.
Nevertheless, minimum wage does seem to impact the lifestyles of families. It is nearly impossible for a person or family to survive on it. There are those who try to make ends meet earning such wages in Vernon County as well as around the nation. Currently, the average wage necessary for a single person is $30,000 a year, according to the Economic Policy Institute.
One local store employee was said to express her distress at her pay rate by saying,"Its hard to live on minimum wage, I can't get any help and I live with my son!"
According to U.S. Newswire, it's the cost of living that's to blame for our country's "working poor" syndrome. Currently, Missouri's minimum wage is the same as the federally enacted minimum.
Some believe raising the minimum wage a has small impact on the survival of the population when the cost of living or inflation causes American dollars to travel shorter distances.
The working poor is not a syndrome in America, it's a way of life, according Barbara Ehrenreich, a sociologist and author of "Nickel and Dimed, On (not) getting by in America." She believes that "there are no secret economies that nourish the poor."
"On the contrary there are a host of special costs. If you can't put up the two months' rent you need to secure an apartment, you end up paying through the nose for a room by the week. If you have only a room, with a hot plate at best, you can't save by cooking up huge lentil stews that can be frozen for the week ahead. You eat fast food or the hot dogs and styrofoam cups of soup that can be microwaved at a convenience store." said Eherenreich.
Daniel Hoskins, of Nevada, Mo., said: "It's awesome to make $5.80 an hour, now that I got a raise. But, still everything I make goes to bills, with very little left over for anything else."
Tommy Scotten, of Nevada, said, "It needs to be raised, with gas and fuel prices, heating costs and utilities it can get pretty hard."
Local small business owners believe they are going to feel the pinch of the raise as well but hope for the best -- that a hike in the minimum wage could provide incentive to workers.
Shane Balk, who owns a small business in Nevada, said, "As a small business owner, it will make employees work harder."