Students, small business owners and city officials debated in Memorial Union Wednesday evening about a charter ordinance that would establish a $7.75 minimum wage over the present minimum wage of $5.15.
The Contemporary Issues Committee of the Wisconsin Union Directorate and the United States sponsored the debate by five panelists.
Ald. Austin King, District 8, a sponsor of the ordinance, said a large number of UW-Madison students support it.
\With the high cost of living in Madison, no one can survive on $5.15 an hour,"" he said.
Peter McCabe, chair of Collegians for a Constructive Tomorrow for the Upper Midwest, said just because a large number of students have supported the campaign does not mean every student is behind it.
Katie Roy, co-chair of Poverty Action Network, said this ordinance is an effective way to raise standards of living. The majority of people cannot provide themselves with basic needs, she explained.
""If people have more money, they are going to spend it on basic necessities, such as food and housing,"" she said.
McCabe said he feels Madison residents are under the assumption workers will earn more money with a higher minimum wage. He said higher minimum wage will affect businesses and employment.
Sandi Torkildson, president of the Greater State Street Business Association, said most small businesses do not have a lot of money, and a higher minimum wage would result in a decrease of employment. Torkildson estimated a higher minimum wage would most likely affect 75 percent of small business in Madison.
Robert Haveman, professor emeritus of Economic LaFollette Institute of Public Affairs, said there would be job losses, but they might be insignificant.
""Every study says that there will be job loss, the question is will it be big or little?"" Haveman said
Steve Zelaznik, a UW-Madison sophomore, asked Haveman what long-term effects would occur if the state saw an abrupt decrease in employment as a result of a higher minimum wage. Haveman responded if Wisconsin does see long-term changes in employment, the state will see a slower economic growth rate because the cost of businesses will be higher.
According to Roy, the effects on the students are very important in this debate for a higher minimum wage, because tuition has significantly increased in the last 10 years.
""I think there are students who really need the money,"" she said.
McCabe stated just because minimum wage affects students, they are not the only group on which the state needs to focus. He said he wonders if a dollar more an hour will affect the job opportunity for students.
