Two weeks ago, the Progressive Student Alliance at the University of Memphis gained a lot of attention with their “Fight for 15” protest demanding a minimum wage increase from $7.25 to $15 an hour.
They marched from the University to the McDonald’s on Highland with banners saying “Memphis Needs a Raise”. According to The Daily Helmsman, these activists sought to “shame fast-food restaurants” into paying employees more than double the current minimum wage.
While many of these activists believe that laws increasing the minimum wage will help people make ends meet, they seem to forget how the government’s interference into the local economy would hurt those they are trying to help.
First, increasing the minimum wage to $15 an hour would make companies increase the price of goods on consumers. It could also result in many lay-offs.
Small businesses would feel the pain too. Local merchants who cannot afford to pay their employees more than the current minimum wage would be put into a tough situation. They might cut hours or cut staff in order to stay competitive to the corporations who could take the hit.
Memphis cannot afford a higher unemployment rate or unnecessary hikes in the prices of goods. Businesses would find more practical ways to hire cheaper labor. The use of self-checkouts and automated systems may become more common to offset the new labor costs.
This law would make it illegal for any wage workers to work for less than $15 an hour—even if they agreed to work for less in the first place.
It is important to allow businesses to have a choice in setting wages at market demand. Companies don’t seek to hurt their employees by paying them low wages, but rather provide them an opportunity to do their best so that one day they may earn more in a prestigious position.
As a Republican, I believe it is important to uphold the values of free-market capitalism and the innovation and opportunity it brings. Sadly, I feel that raising the minimum wage this high appeals to emotion and totally disregards its economic implications.
Lastly, the protest could be heard throughout campus and made its way to McDonald’s with “cars passing by and honking their horns in support.” The right to free speech and assembly is important to our democratic society and I am glad to see students voicing their opinions. If I’d been in my car at the time, I would’ve honked my horn in support of their right to protest.
