Analysis | Consequences, debates around raising the national minimum wage

Minimum wage workers say that a national raise to $15 is about nothing more than providing a livable income. Graphic by HARRY LADA, Art Director

After earning a master’s degree in documentary filmmaking at Chapman University last May, CassidyJo Fortin’s perception of her post-graduate career dramatically shifted when she realized the reality of the job market. 

Like millions of Americans, Fortin was hit with the lack of economic opportunity as a result of the pandemic. Her vision to immediately start a well-paying, full-time job right after graduation was shattered. Instead, Fortin had to continue working her minimum wage job — making $14 an hour — in order to survive. 

“It's embarrassing and depressing,” Fortin said. “I went to a great school, and I make minimum wage in a position that a lot of other people would make a lot more in. If (minimum wage) were to go up, it would mean being able to pay rent and my loans.”

The current federal minimum wage stands at $7.25 an hour, and it hasn’t changed since 2009. Democrats in the House of Representatives were able to approve President Joe Biden’s American Rescue Plan act of 2021 on Feb. 27, which included a provision that raised the national minimum wage to $15 an hour. The Senate passed the financial relief package by a vote of 50-49 March 6 through a process known as budget reconciliation, where budgetary legislation can be approved through bypassing the 60-vote requirement. However, despite the fact that the Democratic Party currently controls the Senate, Elizabeth MacDonough, the Senate parliamentarian, struck down the wage proposal after stating it did not abide by rules regarding budget reconciliation.

The Senate voted 58-42 to reject a proposal sponsored by Sen. Bernie Sanders (D-VT) to raise the minimum wage March 5. Seven moderate Democrat senators voted to oppose the wage increase, as an independent from Maine, Sen. Angus King, likewise voted against the proposal.

For people like Fortin — who has worked up to three jobs while being a full-time student to sustain herself financially — an increase in minimum wage would mean a reduction in the mental and financial strain of steep rent costs and soaring student loan payments, since quitting her job is not an option. Fortin told The Panther that lack of job opportunities due to the pandemic presents her with a very real risk of unemployment.

Opponents to the minimum wage increase say it may lead to inflation and loss of jobs. A Feb. 8 report by the U.S. Congressional Budget Office concluded that an increase to a $15 minimum wage would spike the budget deficit to $54 billion and eliminate 1.4 million jobs. Contrastingly, the report also found that a $15 minimum wage would offer raises to 27 million people and lift 900,000 people above the poverty line. 

Fortin also told The Panther that opponents of a minimum wage increase misinterpret minimum wage workers as unqualified or inept. However, the concept and purpose of minimum wage comes from a place of necessity — paying the bills.

President of Chapman Republicans Justin Buckner told The Panther he believes the decision should be up to the states as to whether or not they want to adopt a higher minimum wage, in order to prevent potential job loss.

“If you increase it to $15, you're going to see kiosks open up,” Buckner said. “Not as many employees and (businesses) would turn more mechanical. I don't think that’s a good thing for either the business or the employees.”

However, Yusuf Baqai, president of Chapman Democrats, feels that given America’s economic resources, a living wage of at least $15 should be federally enforced. Baqai told The Panther he doesn’t think this issue should be partisan, since it is for the betterment of all working class Americans. 

“If a person's working full time (and earning) $7.25, they can’t survive,” Baqai said. “I don't think minimum wage should be an issue that should be so polarized between Republicans and Democrats … We need to make sure that we take care of our citizens.”

Jessica Almos, a junior environmental science and policy and theater double major at Chapman, worked at Six Beans Coffee Co. in Costa Mesa for nine months. Working 20 to 25 hours a week from May 2020 to January 2021, Almos encountered a number of customers who refused to wear masks and abide by COVID-19 regulations. As a result, she left her job due to feeling her personal health was at risk. 

“In my opinion, if your business cannot function without paying your employees a living wage, then you're already failing as a business because you're running on exploitation of workers,” Almos said. “People have been tricked into thinking that in order to survive, they have to be exploited.”

While Congress has not yet passed legislation that will raise the minimum wage, major retailers such as Walmart, Amazon and Target have raised their lowest wages and offered their employees tuition-reimbursement programs.