In 1938, Franklin Roosevelt made it law that there be a minimum wage of at least 25-cents. Now fast forward to today, 2013, where the minimum wage stands at $8.25 in Illinois and $7.25 in Indiana. To those just using it for a temporary income (like teenagers, people in between jobs, etc.), this may be just enough. But for those that rely solely on this, it isn’t nearly enough money to survive on. Certain working citizens are working to raise the minimum wage to $15 in order to support their families. People that have been relying on places such as McDonald’s for 20-30 years claim not to make nearly enough as they should. Governor Pat Quinn of Illinois sees this, and is pushing to raise the minimum wage to $10.
Governor Quinn announced this, stating that “no one in Illinois should work 40 hours a week and still live in poverty.”
The demand for a raised minimum wage has reached the point of protest. During a speech from McDonald’s President Jeff Stratton, several protesters interrupted the speech, screaming “fight for $15!” The protesters loudly asked how in the world they could feed their children on $8.25 an hour. They yelled their cases and gathered applause from scattered members in the audience. While the protesters’ behavior were considered “inappropriate,” it begs the question – is the current minimum wage really enough?
Other states are following suit in an attempt to lessen poverty in their area. For example, in Illinois, raising the minimum wage to $10 would cause some to make approximately $4,200 more per year. The people that rely on these jobs could support themselves and any dependents much better.
However, this also brings up a problem for small business owners. In raising the minimum wage, this would cause small business owners to possibly have to make budget cuts and lay off employees due to lack of funds. While major corporations may see profits, local and small businesses might suffer paying clerks or store workers a higher salary while still offering competitive prices.
But perhaps one consequence of a much inflated minimum wage (not just an average increase) is something that many fighting for a $15 wage might not think about: according to Michael Saltsman, a research fellow at Employment Policies Institute, a business-backed nonprofit research group, “less skilled and less experienced employees lose employment opportunities when the cost to hire and train them rises as a result of a minimum-wage increase.” If McDonald’s will pay $15 an hour, then a whole lot of unemployed, over-qualified candidates with college degrees or higher will be fighting for the same jobs that regular fast food workers already hold.
Currently, 18 states have set minimum wage rates just over the national level, while four states have their minimum wages set lower than the national standard.