Minimum Wage – A Blessing or a Curse?

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Minimum wage has been around for a long time. The basic concept, as I understand it, is to help ensure a certain quality of life for low income families. There are many places in the world where the average monthly income sits between $200.00 and $500.00 per month working 10 hour days. $1.00 per hour is tough to live off of today in just about any environment.

There is a long-standing debate on the pros and cons of minimum wage. I am torn on the subject, because I have worked many minimum wage jobs in my life. I know what it is like to scrape and save, cut coupons, and drive a $1000 car with a broken heater. I’ve been a regular shopper at the local DI. Living off of minimum wage can be tough.

Are Labor Costs Killing Our Economy, Driving Jobs Overseas?
On a bigger scale, I understand the world is changing. We are now in a world economy, becoming more and more tied together. Emotions run high when the topic of outsourcing of jobs overseas comes up. I understand one of the major reasons for businesses outsourcing is due to lower manufacturing costs – which come from lower wages. But as competing companies based in other markets continue to produce the same (and sometimes better) goods (computers, cars, appliances, clothing etc) at a much lower cost, does it make it more difficult for a U.S. company to compete? Is the automobile industry possibly struggling in part due to the increased expense of US labor that other countries do not have to deal with?

When it comes to labor costs I can only imagine how much more it costs to make something in the United States compared with making goods overseas. I anticipate clothing made in the United States can cost several times more than clothing manufactured in a low-wage environment overseas. When it reaches the shelf of your local department store and if two identical products were sitting side by side – one costing $15.00, the other costing $45.00 - which would you choose? For those of us who need to make ends meet (everything else being the same) we’re taking the $15.00 item every time.

Is Minimum Wage Meant For Jr. High & High School Students or for Working Adults?
Someone presented to me an interesting question the other day. How many High School students are currently holding minimum wage jobs? Their guess was that Jr. High and High School students benefit most from minimum wage jobs. There are probably a higher percentage of workers in the 15-17 year age group earning minimum wage jobs than any other age group.

I have heard arguments to have a lower minimum wage for the younger Jr. High and High School age group because: 1) There is not the same “need” for a higher minimum wage as there is for an adult living on their own or providing for a family. 2) many of these individuals are “employees in training” - they have not had much, if any, previous work experience. “A job at this age is more like training for the future workforce.” And 3) an employer likely is taking upon higher risk with this age group as the employees may be – less mature, less able to make adjustments to the work schedule (due to school), less likely to stay on the job (due to other options and low need for income).

I don’t know how a lower minimum wage for “under 18” workers would be received by that group, but some of what they said made sense – especially when the minimum wage is meant for people who are out on their own trying to make ends meet.

Open Questions
What I’d really like to know is: How does Minimum Wage impact people here in Idaho? With Idaho having a substantially lower cost of living compared to other states, does minimum wage impact Idaho more or less than other states?

With Minimum wage being intended to help increase the quality of life for the lower income families – what percentage of household providers are truly impacted by the minimum wage? Is there anyone here - or do you know of any household providers who are currently holding minimum wage jobs?

Here in Idaho, minimum wage is currently set at $5.85, and set to go up past $7.25 by the end of July 2009. Should this increase be going to all age groups, or should it go to only to those 18 and above?

Minimum wage is a tough topic, because helping people get by is part of the great culture of America. What to do in today’s society?

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Comments

Thanks for the article. But just try to pay students less - you’ll have the students in an uproar for sure.


I agree with Joe E. that this would be a problem for school students, to reduce their wages. Especially if you have high school kids working the same jobs as anyone else can work, they deserve the same pay.

I left a higher paying job in the late 80s because of the swingshift type schedule (I had two teenage girls to raise as a single mom and I wanted to be home in the evenings!) I had to take a minimum wage job (back then it was $3.85/hr) because my skills were not suited to higher paying daytime jobs at the time.

Minimum wages qualified me for housing assistance (after sitting a long time on a waiting list) and Food Stamps. I made too much to get cash or Medicaid. (My kids couldn’t get Medicaid because they were born before the 1983 cutoff line in the law that gives Medicaid to low income children.)

I was humiliated to need the assistance, and couldn’t make ends meet even with the help. I have pride/vanity issues, and I was determined to do whatever it took to get off assistance, and worked my way to better jobs/pay within a short period of time.

So IMO it’s not a livable wage, even when they raise it next year.


My comment was getting too long, so I split it up.

Even at the higher amount coming, if you make minimum wage you will still be below the poverty limit, and can still qualify for Food Stamps and housing assistance, and your kids can get Medicaid these days.

That’s an angle that Tarzan and Jane didn’t mention…when the wage for the primary wage earner is that low, their family will end up qualifying for public assistance. So the taxpayer ends up paying out of pocket for these families anyway (via the government) in one way or the other. There are quite a number of households in this area on public assistance, and many of them are making at or near minimum wage.

Those higher costs impact us all, whether by higher costs for goods and services, or higher taxes to pay for welfare benefits for those who earn low wages.

I don’t know the answers, I do know you raised thoughtful questions on a sticky issue.


Well, Nemesis brought up the only point that matters–”cost shifting.” Yeah, minimum wage is what it is–but the stalwart conservatives of this “right to work” state don’t realize THEY are paying all of the hidden costs through their property taxes for the county and the city and the other districts on your tax bill. Do you think these minimum wage people just get their paychecks and freaking disappear? Think again. They know exactly each and every program that they qualify to receive. Who pays for those other programs? So, yeah, we can put our head in the Snake River Plain dune sand and say, “it ain’t my problem.” But the fact of the matter is this: IT IS YOUR PROBLEM! The more you ignore it and the longer you ignore it, the more it is going to cost you on your property tax bill. If you think this is a “them” problem that doesn’t concern “you,” then I have to say, you are totally deluded. The social costs of a low paid workforce are measured in a myriad of parallel social and criminal justice services. Do the math–you ain’t gainin’ on this equation by supporting a Slave Wage State. Yer losing. That’s a flat fact.

Enjoy your next trip to Mao Mart–at least the Asian people who make all those cheep widgets still think a dollar a day is “improving their lives!”


Nemesis and Volunteer, those are the two greatest posts I’ve seen in a long time! Those huge national chains and big businesses don’t pay better because they don’t have to, they have us to do it for them.


This isn’t part of your open questions (sorry) but I wanted to comment on the three arguments presented in your article against junior high/senior high students having a higher minimum wage: to me, those arguments sound biased against that age group.

1)What criteria is used to judge each applicant’s ‘need’ for the job? (One person got the job because s/he was married and had a family but the other equally qualified one didn’t because s/he was single? Or, ‘Hey, you live with your parents and the next person doesn’t so I hired him/her?’) I’m thinking that is illegal.

2)What kind of jobs and limited job experience were being talked about? Aren’t these ground-floor jobs in the first place? No examples were given.

3)I think the interview process and a probation period helps here. However, lack of maturity isn’t restricted to this age group; adults often have to make adjustments to work schedules due to their children’s school schedules, as well as a low need for income if their spouse works; and they may be less likely to stay on a job for any number of reasons.

My understanding is that minimum wage was established so employers had to provide a minimum ‘basic necessities’ living wage to employees, not to determine which age groups deserved it more. The Idaho Dept. of Labor has information on hours, wages and youth that is helpful for ages 18 and under. (Exceptions are also included.)

Blessing or curse? In my opinion, your own outlook and circumstances will decide that question.


“Enjoy your next trip to Mao Mart”

I still don’t understand that: WalMart sells the exact same products that Fred Meyer and Albertsons sell….so why is Walmart wrong to do so more cheaply, simply because they have more buying power?

After all, if the implication is that Walmart is acting unethically by purchasing cheap foreign products, then why isn’t Fred Meyer guilty, too, as they purchse the EXACT SAME PRODUCTS from the same suppliers?

Why is Walmart the only bad guy???


Excellent post findhumor


I think there’s something vaguely unsavory about all the large box retail places, and we could each find something about all of them that we don’t care for. Yet we all shop there (apparently) as the mom & pop stores can’t compete and are having to close down. Savings Center was just the last victim of this trend.

The minimum wages paid locally, and the products bought cheaply from overseas, is how they do cost effective business these days.

Fewer benefits for workers is becoming the norm. I think WalMart was recently exposed for this situation… “If you think our medical insurance isn’t affordable and doesn’t have enough coverage for you, here’s an application for Medicaid, your kids will qualify”…


Two private Ambulance Services in Montana, one in Great Falls the other in Missoula. The employees in these companies are Paramedics and EMT’s. Paramedics make $10/hr. and EMT’s make just above minimum wage (say $6/hr.). I know you’re saying “Whats Montana got to do with this?”, well those companies are owned by a very prominant Idaho Falls businessman. In Idaho Falls a Nurses Aid can make $10/hr.+. This Idaho Falls businessman probably knows every tax loop hole then some and he’s been listed in Forbes500. I think we’re very fortunate to have the EMS System we have here, highly trained and qualified paramedics taking care of us.


I have a question and a comment.

Is Idaho’s minimum wage waived for restaurant workers? I noticed a waiter/waitress job listed on the Labor Dept. site, at 3.35 or 3 something per hour. Anyone know what is up with that???

As for the rates paid to IF paramedics/firefighters, my bf, who is a para/ff in California, just laughed at the idea of moving to IF because of the HUGE paycut he would take. From what I have looked at, even cops in IF are grossly underpaid. That can’t be good in the long run.


Crystal, the waitstaff who get tips are paid at a minimum of $3.35 per hour in Idaho. The expectation is that the tips will be enough to make up to minimum wage.

Yes, I believe the law enforcement and the firefighters in this area are underpaid. I don’t do either of those jobs and I think my wages are comparable, but as I don’t put my life on the line, I think they deserve to be paid more than I get for doing my office job.


I get around 9/hr for my restaurant job, not including between 60-200 per shift in tips and $20 worth of take home meal, and free wine while I work, although I don’t take advantage of the latter (retail value though for those who do is abt. $20).

So I suppose I will be sadly disappointed if I pursue a position as a Server in IF upon my arrival!


Oh, Crystal. Sadly disappointed does not begin to describe how you’d feel, if you come here after having those perks where you are currently.


You are right. I will feel hungry. But I will be fine!


Since it was brought up earlier on this thread, here is one of many reasons why I prefer doing business at other stores besides Walmart. This is just one example of the way they do business and how they bullied the Vlasic pickle company.

http://www.fastcompany.com/magazine/77/walmart.html

There are many more cases where they strongarm their suppliers to the point of driving them out of business. I shop at Fred Meyer partly just to counteract the huge number of people who shop at Walmart. Walmart will do just fine without me but I refuse to support them.

Walmart does more business than the following stores combined: Target, K-Mart, Sears, JC Penney, Safeway and Kroger (Smith’s & Fred Meyer’s parent company). In many cases they have squeezed their suppliers so hard that they have no choice but to outsource work overseas to stay in business. And that is one of many reasons that I think that Walmart is worse than a lot of other stores. But that’s just my opinion.


Crystal,

I was refering to the low wages a Local Idaho Falls Business man pays his employees at PRIVATE Ambulance Services in Montana. Actually Career Firefighters and FF/PARA’s (Here they’re refered to as Firefighter/Paramedics) make fairly good money but not enough for running into burning building when everyone else is running out. Apparently your boyfriend hasn’t researched salary/benifits, col (cost of living), and so on comparing California to Idaho. Health Care jobs in Idaho aren’t real bad, they could be better. I started as an RN in Utah before coming here (12 yrs ago) and I don’t have any regrets. My husband has been in the Fire Service for 15 years and has loved every day of it here. Between us we make $150k/yr.


Actually he did look at what his salary would be there, and it is alot lower. He makes closer to what the two of you make together.


If I’m not mistaken Crystal, you’re coming up from California? The cost of living is considerably cheaper in Idaho than it is in Calif. The cost of housing alone is astronomical in California.


Right, he owns here in Cali, I own in Idaho. As far as I can tell there are many variables, for example my house payment in Idaho is less than my rent in Calif, but I’d have to work for weeks in a restaurant there to make what I make in two short shifts here.


And as you may know, with the real estate market in Calif, alot of the astronomical value has been lost, leaving many folks in a holding position as opposed to being able to cash in. Has anyone noticed any resulting impact on home sales in IF?


Just ran a search on indeed.com for RN salaries in NoCal v. IF, HUGE difference there too.

What is minimum wage in Idaho?


comment #13….free wine at work??? I have never heard of a place that knowingly allows their workers to drink on the job. . . wow.


With 120 wines on the list it is very important to know what they taste like. I’ve had tables insist I get a glass to try the wine they brought or bought. Just a real old style family run restaurant. Not the first restaurant I have worked at where beverages were available.


curious.


And the current min is posted in the article, nevermind my question!


easterner, don’t you rely on your server to make recommendations on food or drink? I’m able to recommend wines and food I’ve tasted with greater conviction than if I am only relaying other peoples opinions. Works for me, works for the patrons, works for the business.


From what I’ve know from talking with friends that have been servers years ago: the employees usually took wine tasting classes, that were not during work hours. Thats why I kinda thought the same thing easterner did. It is interesting, but not unrealistic being that it’s a small “family run” business. (definetely a nice perk though!)


ditto, that has been the practice at restaurants where I have worked: we had wine “inservices” to taste the wines so we could make recommendations but it was not during work….


With a small staff it can be kept in check. I’m not advocating drinking at work! And working with alcohol makes me VERY aware of other drivers on the way home!


sorry, with the concurrent “dram shop” liability, it makes no sense whatsoever for a business owner to recommend or suggest that servers drink at all during business hours. What a liability nightmare that would be!!


Please explain?


Oh! I fully agree. But I don’t make the rules, I just serve the patrons!

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