2008 Woodie Awards
Minimum wage has minimal effect
Patrick DePippo '09
Issue date: 2/7/07 Section: News
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Want more bang for your buck? Well, you finally got it.
Nearly a decade since its last increase, Gov. Rendell approved Act 112, Pennsylvania's new Minimum Wage Law, enforcing the new legislation of Congress to raising the minimum wage from $5.15 per hour to $7.25 per hour within the next two years. Unlike the federal statute, Rendell's piece of legislation is a more ambitious, accelerated increase, with the minimum wage reaching $7.15 per hour by July 1. But how will this increase affect St. Joe's students working on- and off-campus alike?
"My prediction is the increase will not have a very big effect at all," said Benjamin Liebman, Ph.D., Assistant Professor of Economics. "Economic theory tells us that unemployment will go up, but I don't believe that will happen." Professor Liebman went on to describe in detail why the Saint Joseph's community won't be too affected by the Minimum Wage Law. Since many jobs pay more than the old minimum wage requirement, $5.15 per hour, there will be little to no change until July 1. However, there is a small chance that the national minimum could result in an increased cost for the school. "But, I don't think it would be so much that tuition would be raised," said Liebman.
Some student workers are skeptical of the increase. When asked about it, Andrew Hennessy-Strahs, '09 said that it was a poor way of trying to redistribute the nation's wealth. "It's a very, very bad way of going about it. There are more effective ways to improve our economy instead of giving the minimum wage worker a few extra dollars." Although the increase will help, a full-time minimum wage worker is still earning a little over $15,000 per year, which is not enough to raise a family in this country. There are many small obstacles on the national level they must be dealt with, but St. Joe's won't have to worry over too many itself.
It doesn't look like this increase will substantially affect Saint Joseph's financially. There is little possibility that there will be an increase in tuition or a cut-back on funds for student organizations and activities. When compared to all of Saint Joseph's fiscal matters, the student worker payroll is only a miniscule portion of the budget. The University offers a relatively small amount of part-time jobs to full-time students, but, in doing so, can offer more benefits. One benefit is that a majority of Saint Joseph's student workers are already being paid more than the increased minimum wage. This fact may be true for students working on-campus, but what about those who have minimum wage jobs off-campus?
Nearly a decade since its last increase, Gov. Rendell approved Act 112, Pennsylvania's new Minimum Wage Law, enforcing the new legislation of Congress to raising the minimum wage from $5.15 per hour to $7.25 per hour within the next two years. Unlike the federal statute, Rendell's piece of legislation is a more ambitious, accelerated increase, with the minimum wage reaching $7.15 per hour by July 1. But how will this increase affect St. Joe's students working on- and off-campus alike?
"My prediction is the increase will not have a very big effect at all," said Benjamin Liebman, Ph.D., Assistant Professor of Economics. "Economic theory tells us that unemployment will go up, but I don't believe that will happen." Professor Liebman went on to describe in detail why the Saint Joseph's community won't be too affected by the Minimum Wage Law. Since many jobs pay more than the old minimum wage requirement, $5.15 per hour, there will be little to no change until July 1. However, there is a small chance that the national minimum could result in an increased cost for the school. "But, I don't think it would be so much that tuition would be raised," said Liebman.
Some student workers are skeptical of the increase. When asked about it, Andrew Hennessy-Strahs, '09 said that it was a poor way of trying to redistribute the nation's wealth. "It's a very, very bad way of going about it. There are more effective ways to improve our economy instead of giving the minimum wage worker a few extra dollars." Although the increase will help, a full-time minimum wage worker is still earning a little over $15,000 per year, which is not enough to raise a family in this country. There are many small obstacles on the national level they must be dealt with, but St. Joe's won't have to worry over too many itself.
It doesn't look like this increase will substantially affect Saint Joseph's financially. There is little possibility that there will be an increase in tuition or a cut-back on funds for student organizations and activities. When compared to all of Saint Joseph's fiscal matters, the student worker payroll is only a miniscule portion of the budget. The University offers a relatively small amount of part-time jobs to full-time students, but, in doing so, can offer more benefits. One benefit is that a majority of Saint Joseph's student workers are already being paid more than the increased minimum wage. This fact may be true for students working on-campus, but what about those who have minimum wage jobs off-campus?
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