I came to Loyola because I liked the Jesuit ideals of scholarship, encouraging debate and critical thinking. When I came here, I found this in some classes, but not so much in extracurricular activities. But over the past few years, with the creation of the Loyola Society of Civic Engagement and the increased involvement of many organizations on campus, Loyola has become a constant center for political debate.
One example was the recent appearance of Loyola University Community Action Program and others at the Economics Club’s minimum wage debate. It was a fantastic display of student involvement in Loyola events and world politics.
However, I can’t resist using this opportunity to put in my own two cents. Believe it or not, opponents of minimum wage actually think its abolishment will help the poor. Even under LUCAP’s understanding of wages as a tradeoff or a zero sum game, wage control hurts society. The basic moral is that we want a better wage for all so we can raise living standards. In Taiwan, factory workers make shoes for companies like Nike at a wage much less than we make here. If a minimum wage were introduced, then evil, money-hoarding companies like Nike would probably fire a few workers than absorb profit loss, which would drastically reduce the living standard of those fired.
Where does the government get its moral standing when it forces companies to fire one worker so five others can make a little more?
Recently, Taiwanese workers protested factories, including Nike’s, for decreasing their hours. The companies did this under pressure from American groups demanding better working conditions. Companies like Nike pay their workers a little more than the area’s standard salary. If such profiteering were encouraged, the U.S. would lose a substantial amount of jobs in favor of third world countries.
We’re one-sixth of the world’s population and consume 25 percent of the earth’s resources. Our standard of living would go down so others may live better. Wow, I sound like a communist.
Now, let’s say Taiwan raises its minimum wage close to ours. Suddenly shipping shoes across half the world isn’t so cheap. Nike and others bring their jobs back to the United States, and thousands of Taiwanese suffer a severe drop in their standard of living. The rich get richer and the poor get poorer. Damn capitalist minimum wage supporters.
Maybe we should reverse the terrible stereotypes we’ve created. Minimum wage laws reduce the profit margin for employers so they are less likely to create more jobs and even less likely to keep the employees they already have. Studies have shown that losing one’s job causes more adverse psychological effects than divorce.
The free market is all about teaching a man to fish rather than giving him fish. Many bring up the case of the single mother barely making enough to get by. Well that single mother would be doing a lot worse if she didn’t have a job. By encouraging economic growth, this mother can have the opportunity to have a better job or make more at the one she has.
Our unemployment rate is fairly good. More than 5 percent of the nation is unemployed, and only a little more than 1 percent of that is long-term unemployment.
Take it from a flower-loving, hippie communist like myself: Have some compassion. Don’t raise the minimum wage.
