Minimum wage raise would benefit students
Many college students find themselves in the same position: working the typical young adult jobs just trying to create a steady cash flow to get through four years of school.
I’ve spent plenty of summers and winter breaks working at the local supermarket or landscape company just to put gas in my car so I can go on a McDonald’s run with my roommate during the school year.
Just a few dollars is all most college students need, especially those who are lucky enough to live at home with mom and dad when school isn’t in session, not having to worry about the true cost of living.
But there might be those looming cell phone bills or car insurance premiums and soon student loan payments that hinder the bank account. When a student possesses financial responsibility, there is less money to blow on entertainment or food.
After a recent announcement, there soon might be extra cash flowing in for most students.
In President Barack Obama’s State of the Union Address last week, Obama mentioned he would pursue raising the national minimum wage.
The current national minimum wage is $7.25. Obama has plans to raise the rate to $10.10.
The last raise came in 2009, which is still relatively low.
Considering its highest point was in 1968, which when using a government website converter to adjust for inflation, was $10.77, Obama has room to argue for an overdue increase.
The biggest pushback against hiking the minimum wage has been that it’s a job killer.
In theory, higher wages would mean companies would hire less and jack up prices, but a theory is not reality.
According to the U.S. Commerce Department, less than 5% of all workers were paid the minimum wage or less.
Over half of those workers were under the age of 25.
So will a pay increase to 5% of workers that are mostly students cause the economy to spiral into a disaster? No, but the impact on wage earners would be extremely beneficial.
A full-time worker making the minimum today grosses around $14,500. A boost to $10.10 would push annual earnings to $20,200.
Is nearly $500 a month meaningful to workers making the bare minimum? Of course it is.
If you’re a student that makes slightly more than minimum wage, you will most likely benefit from the earning hike as well.
Increases in the minimum wage tend to have an effect on slightly higher paying jobs in that workers now paid a bit higher than the minimum will also see their compensation go up.
Seniors, myself included, will enter the “real world” in May searching for that perfect job to begin their careers.
In reality, many of us will probably settle for any job that will begin to pay off our pressing student loans debt.
An extra $2.85 an hour could slowly move a lot of us a long way back to making those spontaneous trips to McDonald’s without having any second thoughts.
If not, hopefully our parents will welcome us back home with open arms.