Raising the Wage

The Fair Labor Standards Act of 1938 also known as the Wages and Hours Bill is the Federal Law that established the forty-hour work week, restrictions and regulations for employment of minors, overtime pay and more importantly the minimum wage. Since its inception the minimum wage has allowed a standard of living for those who would have otherwise been in poverty, increasing from the $0.25 an hour rate in 1938 to the present $7.25 an hour. However, there has been a lot of debate as to whether the minimum wage should be raised from its current rate to $10.10 an hour, a near $3.00 increase.
In a March 2013 hearing by the Senate Committee on Health, Education, Labor and Pensions, Senator Elizabeth Warren (D-Mass) cited a recent study on the federal minimum wage claiming that if the minimum wage had increased as worker productivity had, “…the minimum wage today would be about $22 an hour.” That is a far cry from the Minimum Wage Fairness Act introduced to senate last year which would have raised the wage to $10.10. However, despite initial positive feelings the bill fell dead in the senate 5 votes shy of being approved for the House.
The failure of the senate to reach an agreement on the Minimum Wage Fairness bill harkens back to a clear lack of understanding on the effect of the minimum wage on the economy. Although the minimum wage sets a floor at which employers can pay workers, the benefits of raising the minimum wage exceed the negligible detriments claimed by employers and politicians who prevented the passage of the bill.
Even with the incremental increases in the minimum wage over the last 3 decades, it pales in comparison to the increases for those in the top 10% of earners within the period. Given the vast income inequalities created over the last few decades, raising the minimum wage would not only minimize income inequality but also improve the standard of living for many of those who struggle to live by $7.25. For those in the food industry, one of the largest industry’s by volume of minimum wage workers this would be a tremendous gain as an increased wage would mean better financial security. According to the U.S Department of Labor, roughly half of all fast-food workers rely on some form of public assistance to compensate for their low wages. More importantly, raising the wage would increase consumer purchasing power thereby increasing the amount of money in the economy and thus businesses doing better overall. At the present rate, many workers in the food industry cannot afford certain prices on goods and services especially when coupled with inflation. If minimum wage workers were to have more spending money not only would more money circulate through the economy but as a result the price of goods and services would decrease due to increased spending and demand. A benefit to not only minimum wage workers but to everyone else.
The federal government’s obvious inaction has motivated some states to increase the minimum wage beyond the standard $7.25. In states such as Ohio, Oregon, Missouri, Vermont and Washington, the minimum wage has been linked each year to the consumer price index which accesses the prices of consumer goods by households. Due to the increase in prices because of inflation, each year the minimum wage in those states increases accordingly. In Vermont for example, the minimum wage is expected to increase to $10.00 an hour by the year 2017. Other cities and municipalities are also taking the initiative; the city of Seattle is expected to raise the minimum wage to $15.00 an hour beginning in 2015.
Even with the notable benefits of increasing the minimum wage, many would still be opposed to the idea due to this belief of the loss of jobs. In economic theory, raising the minimum wage would increase the price of labor thus lowering the demand for labor by firms and increasing unemployment. However, in places that has raised the minimum wage within recent years that has not been the case. The U.S Department of Labor has reported that in states that have risen the minimum wage, most notably in Washington, the minimum wage has seen increased job creation in those areas and at rates better than places without wage increases. Washington for example which has the highest minimum wage in the country posted the best job creation throughout the 2013 – 2014 fiscal year. Thus, contrary to popular belief the minimum wage not only spurns the economy but also creates more opportunities for employment.
As 2014 draws to a close, the federal government should consider reopening the possibility of raising the minimum wage. The economics not only support its implementation but also the clear examples shown in various states and municipalities that have already implemented such practices. Furthermore, the federal government should consider using the models and practices in such states to guide their decisions.

Bibliography

“Economic and Labor Market Information.” Vermont Department of Labor. Web. 25 Oct. 2014. .

Schmitt, John. “Why Does the Minimum Wage Have No Discernible Effect on Employment?” (2013). Web. .

“Wages.” U.S Department of Labor. 15 June 2014. Web. 25 Oct. 2014. .

Wing, Nick. “Elizabeth Warren: Minimum Wage Would Be $22 An Hour If It Had Kept Up With Productivity.” Huffington Post 18 Mar. 2013. Web. 1 Jan. 2014. .

Set in the gritty concrete jungle of New York City, Bob Giraldi’s Dinner Rush is a riveting and revealing story of the various lives of the people anchored to this one Italian restaurant, Gigino. Within the movie, there is an observed power dynamic between the different roles in the restaurant as described in the readings by Prole and Fine. The atmosphere is portrayed as chaotic and sometimes violent, amidst the joyful cacophony of unknowing customers. The movie also appropriately conveys the real lives of those who work in the restaurant and allow it to operate each day.
From the first scenes of the movie there is an obvious power struggle between Udo “King” Cropa and his father, Louis Cropa, the owner of the restaurant. In the film, as Udo’s star presence as an elite cook begins to grow, his father’s role as owner and more importantly as a paternal figure begins to wane. Furthermore, it was Udo’s decision to stray away from the traditional Italian cuisine, this displeases his father and as a result he seeks Duncan, another chef, to cook him the meals he desires. The hierarchy and power struggle between Udo and his father is one that mirrors itself in the other characters throughout the film. As highlighted in Prole’s description of the organization and division of labor in a restaurant, the role of the individual in the establishment also determines their rank. This can thus lead to conflicts of power when there are competing individuals in the same rank vying for the same position. This competition is seen through the servers, who although are ranked equally, still compete with each other for more tables even if there was the potential to be completely overwhelmed. Ultimately, the strive for power and mobility is a universal desire by all those who work in the restaurant industry.
In having a glimpse into the real lives of the workers in the restaurant, the film also allows the audience to make their own conjectures about the people in the restaurant industry. Although not overt, the true personalities of the servers became apparent through their interactions with the customers. Notably, when the waitress remarked that the paintings in the restaurant were done by her, another when the bartender was able to answer every trivia question given to him by those at the bar, as well the shocking revelation of the wall street banker’s dual identity as a hit-man. These instances gave a real face to these characters in that, workers in the restaurant industry have real lives behind their uniforms. They are real people who face real struggles, and are not necessarily poor or un-educated, and get through life by simply earning a meaningless wage. Therefore, they should not be assumed as previously stated, as they do suffer through the drudgery of the work that they are indoctrinated into and that makes them appear un-human.
Although Dinner Rush is not a warm-felt movie, surely it allows one to gain a glimpse into the cutthroat restaurant industry that survives on an array of diverse people.

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