Low-wage workers across the U.S. have been striving for a higher minimum wage, with the Fight for $15 worker movement organizing nationwide strikes since 2012. Although many students at Oklahoma Christian University work part-time jobs to pay for school, not all agree with the campaign for a higher wage.
According to USA Today, the movement to increase earnings of low-paid workers will grow in 2018. Many states and cities are raising their minimum wages as high as $15 an hour. Increasing minimum wages, however, comes with benefits and drawbacks.
“Proponents say the initiatives can help narrow a widening income gap between the wealthy and poor,” USA Today said. “Business advocates say they’re already leading to restaurant closings and layoffs.”
Daniel Sorenson, associate professor of business and finance, said he is not sure a minimum wage is a good idea to begin with. He said he thinks the market should dictate wages, and people should be paid what they are worth. This will give them incentive to go out and obtain the skills employers demand, Sorenson said
“I don’t know if this is popular among the students, but I’m a free market capitalist,” Sorenson said. “A person with a college degree may have a challenge going out and getting $15 to $20 an hour. Why should a person—a high school dropout working at McDonald’s—get $15 an hour? It doesn’t make any sense.”
Sorenson said he does not think McDonald’s and other fast food jobs are intended to be a career, but instead serve as extra income or employment for teenagers and students. Minimum wage jobs should not be a main source of livelihood, according to Sorenson, and the demand for a higher wage can lead to economic issues.
“Wages have to be based on productivity and skill,” Sorenson said. “If labor gets too expensive, management will replace labor with machines and capital. The problem with jobs at McDonald’s and stuff, if people can’t afford to pay the wages, they’re just not going to hire the people. The people will be unemployed and that’s not beneficial.”
Although he is not completely in favor of a minimum wage, Sorenson said he thinks it will stay around and go up gradually.
“I think the general populace, who is pretty ignorant of economics, favors [the minimum wage] and want to keep it,” Sorenson said. “The minimum wage doesn’t affect that many people. Most people can make more than that just from their skills. People should want to hire you because you help them make more money. People will hire you because you have skills that they need.”
According to Sorenson, a $15 minimum wage would increase unemployment, because businesses cannot hire workers at those rates. He said it would give employers tremendous motivation to replace workers with automation.
Senior Danae Edwards said she has worked at Chick-fil-a since August 2015. She started out as a team member and became a team leader in 2016 and a manager in 2017. During the summer, she works 35-40 hours a week, and during the semester she works 20 hours a week.
“As a student, sometimes it is a little difficult to balance everything, especially when you are trying to save for the future,” Edwards said. “My husband and I both work 20 hours a week, so together we are able to bring in a decent amount. But if it were just me, I don’t think I could afford to go to school at OC since we pay some of our school expenses out of pocket. If both of us still made minimum wage, I honestly don’t think I could stay at Chick-fil-a.”
Edwards said she worked at McDonald’s from 2012 to 2014 in her home state, Indiana, where the minimum wage is also $7.25. She said she does not think minimum wage should be increased, because a lot of employees in the food industry and other similar areas are high school students who want extra spending money.
“For the amount of effort and brain power that job requires at entry level, I don’t think that it warrants more than $7.25,” Edwards said. “I know that seems harsh, but there are many more jobs that do not start at minimum wage for those that really need the money—jobs that don’t require a college degree and allow for opportunities to move up.”
“People who enter into the food industry and work hard don’t tend to stay at minimum wage for very long,” Edwards said. “After a year [at Chick-fil-a], I was already making well above minimum wage, as were many of the other hires there.”
According to Edwards, a federal minimum wage is not a bad thing, but she also thinks if the U.S. did not have one, it might allow for some free market balance and possible stabilization of the economy.
“If minimum wage wasn’t controlled, I feel like people would be more likely to strive to get the better jobs, rather than settling for a minimum wage job, especially if it started at $15 an hour,” Edwards said. “If everyone makes that much at least, companies are going to need to start raising their prices or letting employees go in order to keep up with the higher wages. The cost of living would most likely go up as well.”
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