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The Student News Site of Saint Louis University

The University News

The Student News Site of Saint Louis University

The University News

U.S. Congress Proposes Raise In Minimum Wage

Saint Louis University students have had to cope with recent price increases, from gasoline and tobacco to tuition. In relief, Congress may pass a bill proposed by Republicans to raise the minimum wage by $1. Work-study participants stand to benefit if the bill becomes law.

Under the bill, the hourly minimum wage would increase to $5.48 this year, $5.81 in April 2001 and $6.15 in April 2002. The bill also includes a tax package to reduce inheritance taxes and slash other taxes for businesses.

Money from the budget surplus, estimated at $122.7 billion over 10 years, would cover the wage increase and the tax cuts.

Backed by organized labor, President Clinton and congressional Democrats favor a $1 increase over two years and oppose the tax package as unnecessary and favoring the wealthy. Clinton has threatened to veto the bill if it is brought to him as is.

Conflict over the minimum wage dates to 1938, when the first wage was first set at 25 cents, by the Fair Labor Standards Act.

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Since then, the minimum wage has increased 19 times. The last change occurred in 1996 with a two-step increase that raised the wage from $4.15 to $5.15.

Each side in the debate backed up its argument with statistics.

Clinton referred to a study by the National Economic Council. It found that 10 million workers would benefit from the wage increase. About 69 percent of them are over 20 years of age, about 45 percent work full time and about 60 percent are women, the study said.

Republican opponents maintain that an increased minimum wage would mainly benefit young people. Republicans cited studies saying that two-thirds of minimum-wage workers are part-time employees, more than half are under 25 and only 8 percent are women who are heads of households.

Critics of the wage increase argue that businesses, especially small businesses, are hurt by the raises and would tend to lay off workers rather than increase their pay.

If the bill passes, many SLU work-study students would benefit from the increase.

Freshman Kristin Klimek works in the communication department. “I just started working,” Klimek said, “and it’s amazing to me that work-study pays so little.”

The work-study program offers jobs to eligible students that range from residence hall desk-workers to library and office positions. The federal government subsidizes the salaries of eligible students. The University picks up the rest of the tab.

Junior Matt Krings is employed at the Instructional Media Center. He said that the minimum-wage increase would help both younger people who work part-time and those who head households.

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