Living Wage Debate Thrives in Memphis

College Review Opinion Allison Brown reviews Josh Low and Jay Meg Ryan's latest flick Sulzmann offer their Against the Ropes. viewpoints on the liv- The movie also-stars ing wage. Omar Epps. 4 o , SeeScene SeeOpinion Living wage debate thrives in Memphis 120 living wage cam- threshold may account for this; creasing overall earnings in the ductively employed at these By Michelle Hope are over paigns in cities and counties indeed, according to the Census workforce. higher wages (The Commercial As proposals to mandate a liv- around the country. Bureau, the poverty line increased In response to this, Professor Appeal, January 9, 2004). ing wage in the city of Memphis For the most part, the living from $18,248 per year for a fam- Bethany Peters in the Rhodes Eco- It seems then that the living move towards serious consider- wage is consistently proposed as ily of four in 2000 to $18,400 in nomics Department calls attention wage would have an overall in- ation by the city council, it seems a way for local governments, 2002. This rise occurred along- to the theoretical implications of hibiting effect on the economy of only natural that the fire behind school districts and universities side an increase in the number raising the minimum wage based Memphis. Indeed, as Daniel con- the living wage debate has been to address concerns about those of people living in poverty from on standard neoclassical models. tinues, the increase in taxes re- reignited. A living wage, as op- forced to live below the poverty 11.7 percent in 2001, to 12.1 per- She states that even though the quired to subsidize higher wages posed to the minimum wage, is line. A living wage campaign cent in 2002. The living wage living wage will draw more people will inhibit incentives to work and one that enables an individual and works to pass legislation that re- campaigns hope to correct this into the labor force, firms will hire invest in the economy, leading to their family to live above the pov- quires companies to pay a living downward spiraling and offer a fewer workers if the wage is minimum economic growth. Ris- erty line (the federal poverty level wage to their workers. The Mem- comfortable and sustainable stan- higher. Thus, there is an increase ing tax burdens and reduced em- is $18,400 per year for a family phis Living Wage Campaign de- dard of living to all workers. in economic unemployment (the ployment opportunities will slow of four). Thus, the living wage fines a living wage as $20,000 per Perhaps the strongest argu- difference between the number population growth, which itself campaign aims to raise the mini- year, not including employer-pro- ment against living wage ordi- of workers willing to work and the affects economic growth. In ad- mum wage, currently at $5.15 an vided health care benefits. This nances is the fact that increasing number of workers firms will hire) dition, if the living wage ordi- hour, to the living wage. equals around $10 per hour. the minimum wage to the living when there is an increase in the nance does raise the general wage Overall, Ciscel, a professor of The Memphis Living Wage wage may lead to inflation. How- minimum wage. Level, the increase in workforce Economics at the University of Coalition includes twenty-seven ever, advocates of the program Also, she adds, even though costs will inhibit competition Memphis, estimates that for a member groups, congregations still insist that the social benefits it is true that workers who are within the market place (The Com- single parent living in Memphis, and faith groups, community or- far outweigh the economic costs. still working will get greater ben- mercial Appeal, January 9, 2004). a living wage would constitute ganizations and labor unions, as Overall, the most obvious advan- efits due to the higher minimum Despite this, the Living Wage earnings of around $26,128 per well as a number of concerned in- tage of the living wage is the in- wage, some workers who would Organization suggests that evi- year compared to the $10,712 a dividuals. According to the Liv- crease in quality of life for those have ajob under the current mini- dence from cities that already year earned by a full time worker ing Wage Organization, the ba- who currently live below the pov- mum wage will be jobless. Fur- have living wage laws indicates on minimum wage (Living Wage sic premise behind the living wage erty line (around 12.1 percent of thermore, Professor Coldwell that most of the costs of living Research). The concept of a liv- campaign is that no one who un- the population). In addition, and Daniel, who teaches Economics at wage ordinances are absorbed by ing wage has numerous disadvan- dertakes full-time legitimate em- according to the Living Wage Or- the University of Memphis, be- businesses through reduced train- tages and advantages, all of which ployment should be forced to live ganization, though living wage lieves that the introduction of a ing and recruitment costs or by have been subject to much de- below the poverty line where ba- laws help ensure that individual living wage would have a serious small reductions in profits. Evalu- bate. sic needs for a comfortable and workers and their families main- effect on the "distribution of ations of living wage laws found At the center of these de- sustainable lifestyle remain tain at least a minimal standard wealth and the growth of per no evidence of job loss, and the bates are the living wage cam- unmet. Moreover, living wage or- of living, the benefits of in- capita income in our city" (The costs of contracts for the city in- paigns, which lobby for the pass- dinances work to change the creased economic activity as a Commercial Appeal, January 9, creased by only insignificant ing of such legislation. Living downward trend in incomes for result of this are spread through- 2004). In an article in The Com- amounts. There is also the fact that Wage Research estimates that low-wage workers. out the community. To be cer- mercial Appeal, he states that where there may be small increases there are 106 living wage ordi- Indeed, though the minimum tain, an increase in income leads "any increase in wages that is not in costs to taxpayers (primarily be- nances (locations where a living wage has increased over the past to an increase in consumerism, induced by the operation of a cause of city workers' wages being wage is instated) enforced by 98 few years to accommodate which ultimately benefits the competitive free market transfers raised by the ordinance), there will counties and cities, 3 universi- changes in consumerism, defini- economy. Thus, the living wage wealth from those who pay the likely be an accompanying reduc- ties and 4 other local jurisdictions tions of what it means to live com- benefits the community by reduc- necessary increase in the cost of tion in the cost of public assistance in 31 states. It is thought that fortably have changed. Thus, ing the costs of public assistance. products to those who receive the for low-wage workers that taxpay- with an average wage of $11.25 economists have identified a Moreover, living wages not only higher wages. But unless the ers currently bear (Daniel, The Com- per hour without health benefits downward spiraling of incomes for benefit those who earn them, higher wages are subsidized by a mercial Appeal, January 9, 2004). (more than double the current wage workers (i.e. those paid per but also workers at many dif- source from outside the market, The content of such debate federal minimum wage) these hour instead of an annual salary). ferent wage levels due to the the process yields a loss for which makes it clear that the issues ordinances are being adopted at Some suggest that the ever- fact that the overall wage there is no compensation." Thus, Living wage, continued on Page 5 a rate of one every month. There changing nature of the poverty threshold is pushed upwards,~~-~~~.~~.-~~---- in- fewer wage earners can be -pro----- ...- I. _ at----.---- '--~L3~ OPNION Wednesdav F hriar 25, 2004 " -ii ASSOCIATE EDITOR ENTERTAINMENT EDITOR EDITOR-IN-CHIEF Erin Hoekstra Autumn Brice NEws EDITOR SPORTS EDITOR Frances Rabalais Jack Baber THE SOU'WESTER OPINION EDITOR THE RNODE'STER EDITOR founded 1848 Chris Ebersole Caroline Bishop FORUM EDITOR PHOTOGRAPHY EDITOR Christian Masters Miriam Dolin EDITOR-IN-CHIEF Amber Show COPY AND LAYOUT EDITOR Amy Barnette BUSINESS MANAGER Elizabeth Maxey EXECUTIVE ASSISTANT Lauren Wilder Layout designed by Amber Show and Frances Rabalais Member of the Associated College Press (ACP) Letter to the editor death." Homosexuals were in- and individuals who have suffered Professor Drompp, deed persecuted, tortured and more, and that it would be just as I respectfully concede your killed by the Nazis, as were many unfair to compare my situation point. I made a terrible error when other minorities, and I regret with that of I wrote that "Homosexuals, Mus- the falsehoods that I used in a re- persecuted homosexuals, Muslims lims and the poor have not been cent response to another student. after 9/11 or any other group as it herded into cattle cars by the mil- Although the example would be to compare those victims lions and transported to facilities I provided was hasty and flawed, with any Albanian persecuted by in which they were tortured my point still stands that no mat- Milosovic, for example. There are before being gassed or burned to ter what, there will always groups endless examples of "worse," and I unfortunately chose a bad one FRIENDS WORLD PROGRAM.

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