Economists say raising minimum wage has its pros and cons for La.

With the daily increasing prices of gas and other “life expenditures,” the debate on whether or not to also raise Louisiana’s rate of minimum wage pay is one that has its pros and cons, economic researchers say. The Federal Minimum Wage for the state has been $5.15 an hour since September 1, 1997 despite an attempt in 1999 to raise the hourly wage to $6.15, and the most recent 2006 attempt to increase it to $7.15.
According to the Louisiana Department of Labor’s Wage and Hour Division, in 1997, both houses passed the $6.15 increase, but former President Bill Clinton vetoed it that year.
Officials say the proposed $7.15 increase this year was passed by the House but was later blocked by the Democrats in the Senate.
“Last time I worked for minimum wage was in 2003 at a local grocery store in my home town,” said Brandon Sostand, a sophomore animal science major from Port Barre.
Harold Mellieon, a sophomore animal science major from Plaquemine, said he has never worked for minimum wage.
“The lowest I have worked for was $5.25 (an hour),” said Mellieon.
Rose Matthews, administrative assistant for the department of economics and finance at Southern, said “the government feels as though $5.15 is enough since they give governmental assistance like food stamps, Medicare, LaChip and housing subsidies.”
“Since we the people don’t have anything to say, why should Congress,” she said.
While Louisiana is among a majority that has the minimum pay of $5.15 per hour, other states paying more are California and Washington at $8.50 and $7.63 respectively.
Although the consensus of many students is to raise minimum wage, there are both advantages and disadvantages to an increase in pay.
“It will help low-income families,” said Dr. Sung Chul No, assistant professor of economics at Southern. “Raising the minimum wage is not popular with the small business association (because) they are barely making a profit.”
No said when minimum wage rises, the demand for workers decreases while the supply of hours increases.
On a positive note, officials say the “effective or average minimum wage around town is $8.00 because businesses are in competition with each other for labor,” another reason for the fight against increasing minimum wage.
No and Matthews both agree minimum wage has not increased, but everything around has including taxes, causing the value of $1 to steadily decrease.