Customer Behavior @TTU

Lubbock’s Living Wage

February 28, 2007 · 39 Comments

As mayor, I want to keep my people happy because happy people do not go the polls. Those happy people who do go to the polls, vote for the incumbent [me :) ]. Remember, I do not have any Hugo Chavez type powers.

To keep my people happy, I have thought about increasing their wages. I read about other mayors who pass living wage requirements. I also thought about raising the minimum wage. According to the Poverty in America web site, the federal minimum wage is below the poverty line for most family types in Lubbock.

Republican bastions like Nassau County and Westchester County and Democratic strongholds like Santa Monica passed living wage requirements. Large cities like Washington D.C. and government boards like the Central Arkansas Library Systems instituted living wage.

I am not sure what to do. Business leaders do not want me raise the minimum wage nor institute a living wage. Not only will they not create new jobs, but these business leaders promise to move their existing jobs to Wolfforth or Slaton. Still, I think the people will be happier with an increasing in their wages.

Besides social activists, I have religious leaders clamoring for an increase in the people’s wages. Remember, I am mayor of a city with a church on nearly every block. In Lubbock, if you cannot find a church to meet your needs, then you are not looking.

What should I do? If I raise wages either through a minimum wage increase or a living wage requirement, then what will the people do with the money. How do I know the people will not deposit their increased wages in a non-Lubbock based banks like ING or Wells Fargo?

Will businesses stop hiring people? Will they fire people because labor is too expensive?

As my high priced consultant, what is your advice?

Categories: Blog · Social

39 responses so far ↓

  • julianneb1 // February 28, 2007 at 9:22 pm |

    If raising the minium wage or instituting a living wage will decrease the number of available jobs then I wouldn’t do either. I think that if it limits the number of jobs and keeps people out of work then we’ll be just as bad off, if not worse had they left it alone. I realize people need to make above the poverty level, but if you think about the benefits that most people recieve at work in addition to their wage, does that help to counteract the low wages at all? It’s also different because the price of living in Lubbock, or Texas in general isn’t nearly as high as states such as California and Maryland. It’s a tough choice, but for now I’d leave wages alone.

  • charlese1 // February 28, 2007 at 9:43 pm |

    I don’t think raising the minimum wage is the answer to keeping people happy. Though churches are pushing for a minimum wage increase, most churches will back up the mayor in any circumstance. Also, you don’t want local businesses to get on your bad side, because businesses have a lot of influence on Lubbock residents. It’s a great point that people might put the extra money gained by the minimum wage increase in the bank. That would kill the Lubbock economy and look real bad on the mayor. The minimum wage should stay as is for Lubbock, Texas.

  • erich1 // March 1, 2007 at 12:24 am |

    I believe that issuing a living wage would be a small step towards a positive solution. Yes, I agree that having businesses running for the hills is not the best idea as far as Lubbock’s interests are concerned. But the in the end, if a large majority of other cities adopt this method, then people could leave Lubbock for the work environment that pays the living wage eventually anyways. I recognize that it is only a few cities that have adopted this method thus far, but reports show that minimum wage is an issue with increasing attention. As with most cities, Lubbock must make sure that we keep our businesses satisfied, but also must keep issue. A gradual implementation of a living wage may allow businesses to adapt to the idea all while making the blue collar workers of Lubbock more satisfied.

  • noparatchock // March 1, 2007 at 2:02 am |

    The only people who care about minimum wage are those who work or employ at the minimum wage. For those people who work at the minimum wage, if their income increases, their spending also increases. Where will they go spend that extra money? The answer is here in Lubbock. This phenomenon will help boost Lubbock’s economy. For business owners, they may have to pay a bit more money to their employees, but in the end they will have more money coming in due to good local economy. I think the standard of living of tens of thousands of people is more important than one or two companies’ profit.

  • courtneys1 // March 1, 2007 at 6:21 am |

    I think for right now that increasing the minimum wage and living wage is not the best idea. Initially I thought it would be a great idea, especially for those under the poverty line, because I know a lot of single parent families are having to work two jobs to support their family and thus don’t have time for their family. But if it is putting other people out of jobs, then that’s might add to the homeless, which if one person is homeless, that’s one too many. Plus, like it was mentioned, I know that if have extra money I don’t usually spend it, I put in my ING account in order to save money for the future, so the extra money wouldn’t be going back into the Lubbock community like we would need. Another aspect is that if you don’t have Lubbock businesses support, you probably aren’t going to get very far with Lubbock residents. Like Charlese1 said, businesses have a lot of influence on their residents. If you don’t have them going to the polls, you probably won’t have resident going to the polls. So as for right now, I wouldn’t think increasing wages would be the best idea.

  • lexib2 // March 1, 2007 at 10:17 am |

    I am going to have to agree to some degree with what noparatchock said about the people who care about the minimum wage are the people who are getting paid minimum wages. Then you have to consider that there is a boss higher up somewhere who is having to make cuts and downsizing to make sure that he can afford to pay the raised rate. Here is where I see the dilemna. The upperclass and older people are the ones that comprise most of the votes at the polls. They are the ones that read newspapers and watch the news on a daily basis. These are the folks that stay up-to-date on political issues and go to voice their opinion. So if you enforce a policy that has a negative affect on them, you might see a reflection of this in the polls. On the contrary, the blue collar workers are more likely to spend their extra income on entertainment. For instance, they might buy the extra pack of beer after work or pick up a lotto ticket. If the consumer had endless time, the skies the limit as to where they’d stop purchasing and end up. Making the blue collar happy could have a positive affect on votes, but I think the number of happy blue collar that would actually go vote would get laughed at in comparison to the amount of angry upperclass that would be opposing your vote at the polls. If your main goal is winning votes, then I think you should target the audience that would win you the most votes, and in this situation I think the upperclass would do that for you.

  • maryc1 // March 1, 2007 at 10:51 am |

    I think that if raising minimum wage in any way hurts Lubbock businesses it is a bad idea. While raising the minimum wage will make some people happy for a short period of time, it will hurt the community as a whole. If the wage in Lubbock is high it will not be appealing for business to come here and start branches. This will in turn hurt Lubbock’s work force. They will be forced to commute to smaller surrounding areas such as Wolfforth just to get a lower pay. I know it seems like what everyone wants is more money but giving a quick fix of raising the minimum wage will only hurt the same people you are trying to help in the long run. I suggest you wait don’t make any rash decisions.

  • evaughan2 // March 1, 2007 at 12:25 pm |

    I wouldn’t take it into your own hands to raise minimum wages, that’s not exactly something to get you voted into office again by your followers. Minimum wages were just raised and even though it hasn’t gone into effect yet, atleast you personally can’t be blamed for it by businesses. Then the people who are being paid minimum wages will get an increase and hopefully it helps them out and all is better in the world. Not really, but atleast don’t raise it on your own. After the increase that will soon go into affect if the situation is still in dire need, raise the issue again.

  • amkyrish // March 1, 2007 at 1:04 pm |

    The idea of a living wage is something that is not going to fix the problems that certain members of Lubbock are facing. By raising every wage to a living wage there would have to be a significant decrease in the number of jobs that are available. The city of Lubbock does not have the industry or financial flow of cash that other large cities do to support an increase in wages. I think that people would become dissatisfied with the increase in a few years and this arguement would simply repeat itself. In the end, the decrease in jobs that would follow the increase in wages would leave the same amount of people below the poverty line, because the people who are making minimum wage and the lowest members of the workforce are the ones that are going to lose their jobs first. The nation will take the actions that it sees fit, and after that the city of Lubbock should take actions that are going to balance these affects so the best thing is done for the city.

  • codyh2 // March 1, 2007 at 5:18 pm |

    Increasing minimum wage would be a great idea for lubbock and as a student, I believe that more money will help out. There are new students coming into tech every year from different parts of Texas: Houston, Dallas, and San Antonio. With the new traffic and more people coming in, more money and more businessmen realize that their is potential of growing more businesses here in Lubbock. There is no problem with cash flow and if an increase in the number of people to Texas Tech happens every year the new money will be generated within the cash flow of lubbock. Now the students that have regular jobs, like I do, we only get paid the minimum wage or just a few cents higher. The students who are seeking jobs are the ones that have to pay their own bills and rent every month and with the increase in energy costs and the standard of living rising we struggle to pay our bills while still trying to be a good student. The increase will help out in balancing the money situation for students while tying to be a student. I am taking an approach from the students perspective because without Tech there would be no Lubbock. This town is based around tech and thats why the city council should look at the students perspective and try to help the standard of living for the student be better by raising the minimum wage requirement for the city.

  • whitneyw1 // March 1, 2007 at 6:43 pm |

    I also think that raising the minimum wage is a good thing. Many students find it very difficult to make it buy working almost full time on the current minimum wage. If this is the case for college students imagine how hard it is for families to support their children on the current minimum wage. I think that businesses might be a little turned off by the increase initially but over time they will come around and realize that raising the wage is a good thing. Lubbock is a growing town and it will continue to grow so I think that with all the growth businesses can expect for profits to grow therefore they will be able to compensate for the potential raise in the minimum wage. Overall I am all for the increase.

  • agammage1 // March 1, 2007 at 6:51 pm |

    If raising minumum wage is going to create less jobs, I would not raise it. Minimum wage is set at a low price, but jobs are becoming harder and harder to find, and this cannot be the only solution. Due to inflation, prices do increase a lot which creates a necessary grounds for minimum wage to increase. I think people are happy enough with the way things are now. I may be completely wrong, but some huge decisions such as this one, can sometimes only make matters worse.

  • joseb1 // March 1, 2007 at 7:04 pm |

    I believe the minimum wages in Lubbock should be increased. One reason i think so is because of the huge difference in target markets in the Lubbock community. Lubbock, being a small city, is a very close knit community where people inteact with each other in a consistent basis. Because the city is so connected, the huge difference in social status should be concerning. Why keep a cap on a community’s income whenever there is such an abundance of affluent people, not to mention college students. Filting down extra funds to the minimum wage workers won’t hurt anyone. Maybe then Lubbock will truly see past the economic barriers that border this town.

  • eriny2 // March 1, 2007 at 9:20 pm |

    I believe that you should raise the wages through a minimum wage increase. Although there is a fear this could create less jobs available, I think that with all of the construction in Lubbock, the new businesses will be creating more jobs. The increased minimum wage will make employees happy and when employees are happy they tend to work more efficiently. Having said that, businesses will not need to hire more employees because their employees will be working more efficiently, which gets more done. This will hopefully work with the hope that new businesses in Lubbock will create new jobs available.

  • patrickm2 // March 1, 2007 at 9:46 pm |

    First off, most people still make more than the minimum wage. Those who don’t probably don’t have any expendable income and will therefore funnel any extra income toward necessary amenities. At minimum wage standard, people still make less than the poverty level. As a consultant, I wouldn’t be worried about them taking their extra money to other banks to invest it. They will spent it all. I also wouldn’t worry about businesses not hiring employees. The extra expenditure will not hurt employment all that much. However, I disagree with increasing it. Increasing minimum wage is a terrible solution. The increase will only affect the people and business on the lowest scale. The business on the lower scale will start to charge more to everyone for their services. This will cause price inflation for everyone. All of a sudden the purchasing power of the minimum is the exact same but the purchasing power of people who live above minimum wage has decreased. The government has not increased it because it is looking for a long-term solution to poverty, not just a five year band aid. And with so much money in foreign markets, a devaluation of our money could be devastating to oversea investors.

  • micheller2 // March 1, 2007 at 9:55 pm |

    I believe that raising the minimum wage will be bad for Lubbock. The city of Lubbock does not have the industry or financial flow of cash that other large cities do to support an increase in wages. I agree that it would be nice from the standpoint of the employee but raising the minimum wage does not guarantee more money being spend in Lubbock; some people might take vacations, buy online, pay existing bills or save.

  • malloryg2 // March 1, 2007 at 10:51 pm |

    This is a two-sided issue to me. Of course an increase in minimum wage would make a lot of Lubbock residents happy, but you have to weigh out the consequences of doing so. Just because one person might invest their new increase for the better good of themselves or the town, doesn’t mean that they won’t take the “extra” sort of as a means to do personal activities. It is a question that should definately be researched and discussed to see which option would be for the better of the city itself. That is what the mayor is responsible for.

  • kirkf1 // March 1, 2007 at 10:53 pm |

    I do not believe that raising minimum wage will help much at all. As stated in the article a majority of business will leave the market and operate in nearby counties. Therefore with less businessees to employ workers to this wage increase only a small few will be subject to this wage increase and whos to say the extra cash in the consumers pocket even goes to lubbock. As the mayor worried a vast moajority might not even have their money in local banks. With this wage increase I foresee the Lubbock economy slowing down as more businesses leave the county to pursue more favorable operating conditions.

  • nicoshas1 // March 1, 2007 at 11:46 pm |

    From the perspective of the mayor he needs to determine what he want out of his time in office. Does he want to be known for trying to help the people? Or does he want to promote business and keep the support of local businesses while in office? From an economic perspective I think that its difficult to predict what would actually happen if a min. wage existed. Would companies really move to other counties? Or would moving and relocating cost just as much as paying more to workers. What if other counties implement min wage laws? Also by giving more money to workers does not ensure that money will be spent or put into local firms. Also I agree with some above statements that alot of min wage jobs are not actually paying min wage whether it be because of tips, or benefits, ect. If i was the mayors consultant, my advice would be first determine what you want, to have happy citizans or happy businesses. After that really determine whether changing this policy will create’happiniess” or cuase business recession.

  • meascott // March 2, 2007 at 9:55 am |

    As stated above there are many different considerations to take into account. First, you have to realize that there is no set way you, as mayor, would be able to please everyone you lead. In leadership positions it is almost impossible to make every single person happy when you make a decision. With regards to increasing minimum wage in Lubbock, as a Tech student, this is a much needed change. Considering that Lubbock is a college town, I often feel that our local government overlooks a majority of the population, college students. If the minimum wages were increased then you might see an increase in Tech graduates staying in Lubbock to find a steady job, this being that they were treated so well there four years in college. I think that increasing the minimun wage could bring great benefits to Lubbock, in regards to keeping college students here after graduation.

  • lesleyh1 // March 2, 2007 at 10:12 am |

    There is not going to be a straight forward answer to this question. You have too much to consider when making this decision. Like it said in the article, “what will these people do with the new money?” and “how will business men react?” With the living wage being so low, it makes it very affordable living for most. If you increase all of this, how are some people going to survive when they are barely making it as is. I think an increase would be great for the city of Lubbock though. You might have businesses complain but you could also bring in new businesses that want to have a higher standard of living like the Dallas area. There is also the concern of what people will do with this new money. If they put it in non-Lubbock banks, I dont know how it will help the city. There is so much to consider when making this decision. I think this is a town that doesn’t like change and wants everything to stay the same. You are going to have problems whether you raise the minimum wage or not so why add new problems. I think we should just leave the minimum wage the same and not try to add more problems to the situation.

  • iana1 // March 2, 2007 at 11:09 am |

    Minimum wage needs to be increased. Sub $5.50 is a little low. Business won’t move from where they are because its all about location, location, location. Minimum wage should at least be $6. Even $6 an hour working full time only makes $14,400 . I don’t know about you but that’s not much to live on. If you increase the wages you’ll most likely increase spending, which will generate more profits for everyone. If people are broke they don’t have any money to spend, makes sense. Raising minimum wage or setting a living wage may seem bad to business, but what they don’t realize is that the people they are paying probably shop at their store. More money means more spending.

  • treyk1 // March 2, 2007 at 11:58 am |

    I would tell you not to raise minimum wage or institute a living wage of any type. Since when was a person supposed to be able to support a family off of minimum wage? Maybe, when it was first introduced, but anyone trying to do that now is crazy. Not because the amount is too low, but because anyone trying to support a family should be able to find a job that pays much more than that. I started my second job making $1.35 over the federal minimum wage, and after working there four summers, I’m around two and a half times the minimum. I am by no means an expert in the field (meaning there is still room to grow salary-wise), nor do I think I make enough to support a family, but that’s no the point. The point is, anyone relying on a minimum wage job to support a family, or just themselves for that matter, is lazy. There is no need to pander to them, they need to get off their lazy butts and give their employers a reason to raise their pay based on performance, not because of some city or federal regulation.

  • carlym2 // March 2, 2007 at 2:56 pm |

    In my opinion, I don’t think that the mayor should increase the living or minimum wage right now. Lubbock is growing at a fast pace and there will always be a job available around the city. Eventually, maybe 5 or so years from now, he should then consider raising the living wage when there are higher end businesses here. Since the living wage is low for the city, it makes living here very affordable. Everyone always get excited about being paid more, but I think the mayor should wait until Lubbock grows into a city that is not only focused around Tech, but also around cities that surround Lubbock before the wages increase.

  • chrisc2 // March 2, 2007 at 4:27 pm |

    First off, let me say that I agree with raising minimum wage. But with that same statement, I would say that it should be done over a period of a couple years to allow businesses to make adjustments. I have no doubt that increasing minimum wage would have a positive long term effect on Lubbock. The fact is businesses are in business to make money, but if you don’t take care of your people working for you then it is ultimately going to come back and get you. I try to look at this problem with simple logic. If I get paid more and I feel that my work is valued, I am going to want to do a better job. Thus making the company more productive and ultimately allowing to company to be more successful. Therefore, by increasing the minimum wage, spread out over a few years, the local businesses might take an initial loss, but will ultimately see a return on paying their employees more and valuing their work.

  • ashleyd2 // March 2, 2007 at 7:24 pm |

    I think that you need to first look at Lubbock’s standard of living, it is a lot lower than California or New York. I think that increasing the minimum wage would put a strain on owners to charge more for their products and services, which poor college students (A.K.A. most of Lubbock) are not going to pay. I also thinks that it doesn’t motivate people to go and work harder, so that they can get promoted in their company. It is not something that I would consider if I was the mayor.

  • monicag1 // March 2, 2007 at 7:48 pm |

    Implementing a plan that will increase the living wage and minimum wage is a solution which Lubbock should accept. This idea will benefit Lubbock’s economy all around. Although some may fear businesses will leave or people will lose their jobs, they are not looking at the long run picture. There will always be business in Lubbock. With three major universities, consumers will come and go. If companies decide to leave Lubbock in order to save money, they will be back eventually. Besides, extra money in your pockets does not stay in your pockets. People spend it!

  • wilsonh1 // March 2, 2007 at 11:20 pm |

    I agree that raising the minimum wage is probably not the best idea. This would more than likely lead to businesses leaving Lubbock for nearby towns as well as businesses not expanding. It is more important to have the amount of jobs available in Lubbock to continue to grow than have higher wages. In the end, if wages are raised then the cost of living will just go up to offset it

  • jakeg2 // March 3, 2007 at 12:22 pm |

    One thing I think no one has mentioned is the people unaffected by the minimum wage that will be affected. There is a large portion of the population, especially college students, that make slightly more than 7.50. I personally make 10$ an hour and thought I had a decent part time job. If the minimum wage was changed however losing my job may not be so bad, I could easily be back on my feet making 7.50 any where in Lubbock. Not a major point, but one that you may overlook. What if in another circumstance someone was making 7.50 already or 8 at a slighty more skilled job than Whataburger and were proud to be a step up from that. Those are a small category of people but will certainly feel the sting of the new wage.

  • jenniferr1 // March 4, 2007 at 3:51 pm |

    I would like to start by saying why is the mayor asking everybodys opinions, he is the man in charge and should have his own opinions and reasons for running the city in his own way. I think its good he asking but he should merely be taking peoples opinions into consideration, not asking them what to do. I think that if minimum wage will not support a persons cost of living, the minimum wage should be raised. That is the only job some poeple can get and without it being able to support their living habits they will have a negative outlook and not want to go to work. If increasing the minimum wage would decrease job availability i think it should be a concern and the government should step in and help citys find a way to help the poverty stricken population.

  • jalderson2 // March 5, 2007 at 2:42 pm |

    I will start by saying that you cannot rate individauls incomes throughout the US and state what is and what is not under the poverty line. City’s cost of living chnages dramatically. Lubbock is proud to be one of the best cost effeicent living city’s in the nation. Raising either woudl only hurt Lubbock business grow. Low Wages above min. would not change much if at all. These jobs if more expensive to labor out would only increase in price which hurts everyone inclusing those who are working them. Raising the low income of a people would only be beneficial for theidea that the money would go back into businesses ( bais of Economics). This would more than likely not happen with the profile of the min. wage workers. My soultion would be to bring new and beter businesses to the hub City. Better and more focus on education and training would greatly raise the average wage in the city and all around help.

  • parkerc1 // March 5, 2007 at 5:26 pm |

    Playing with the minimum wage like it is a small sale item in a retail store is a bad idea. This is Lubbock, Texas; not New York City. Increases in employee wages can place a huge impact on “the books” for a small business. Raising the amount of minimum wage is not a bad thing as long as it is done in small increments. All this talk about raising the minimum wage by $2 an hour will destroy a small business. In no way would this increase motivation for employees to work harder because it’s the “bare minimum” that a person will work for. This high minimum wage will take away from raises that good employees deserve because the funds won’t be available for the raise. All this drastic increase in the minimum wage would do is raise the average price of goods sold.

  • laurenh2 // March 6, 2007 at 9:43 pm |

    Raising minimum wage would not necessarily be such a great idea since doing this would lower the opportunities to get jobs. If this happens then some people will end up being even worse off and I believe the poverty and unemployment would increase, which is what we are trying to fix. I also agree with parkerc1 in the fact that if minimum wage is increase by that much, raises that people deserve will not happen as much as it possibly should. Then, people will not work as hard and become lazy. In then end, raising minimum wage will end up hurting society rather than helping it.

  • chriss1 // March 8, 2007 at 10:01 am |

    What people need is not a higher minimum wage, but health care insurance. Instead of raising the minimum wage which might also cause local business to raise their prices in order to afford the new wages. We should have a program where the companies provide health insurance for their employees. A great number of people in the USA are uninsured and can’t fully enjoy the benefits of health care. The United States has the most advanced technology in the world for healthcare and too many people can’t take advantage of it. So, my answer of course is no to raise the minimum wage. Besides I think pay should be based on performance anyways, and not just a flat rate per hour.

  • lpatman // April 2, 2007 at 9:59 am |

    I think that raising the minimum wage would be a poor thing to do. If the minimum wage does raise then everything else including the price to live, cars, insurance will all raise also and then nothing good would of happened. Also, if this happens the value of the U.S. dollar will start to lose its value. The mayor even says that business leaders have said they will leave to go to Slaton or Wolfforth, which in my opinion all ready says what should be done. Figure something else to do like health care or retirement pensions.

  • emilys1 // April 17, 2007 at 2:43 pm |

    I think that increasing the minimum wage in Lubbock is a good idea. Right now the minimum wage is so slow that families in our area can not support their families. The minimum wage is not supposed to be below the poverty line. I think that by increasing the minimum wage in Lubbock we our helping our community. People will be making more money, therefore spending more money which drives our economy. Lubbock is a thriving city and will continue to be. I do not think by increasing the minimum wage it would harm Lubbock at all.

  • brookea2 // April 18, 2007 at 11:50 pm |

    I think before the mayor increases minimun wage, he should begin by attracting people to the Lubbock area. Just three years ago, the area off Broadway didn’t look half as good as it does now, because they set rules and regulations on what a building should look like in that area. If Lubbock sets stricter policies on the neighborhoods and small businesses around Lubbock, I think it will change people’s images of this area. The Tech Terrace area is becoming increasingly popular because of homes that are being renovated. I think the mayor should start there, attract more people to Lubbock, then have the leisure to increase minimum wage if he sees fit. However, right now, I do not think that it would be the best thing for Lubbock. It would be jumping to B, without begining with A.

  • rachelc1 // April 19, 2007 at 5:48 pm |

    I agree with some people above that the minimum wage in Lubbock should be increased. In comparison to other cities the city of Lubbock has a lower cost of living; however it is hard to survive on the basic salaries that Lubbock businesses pay today. It would be a downfall that there might be job cuts, but I think it is worth it for people working to get paid a little more for their hard work. It is hard for many college students in today’s age. It makes it a very long day having to go straight from school to work and then only having little money to show for your absolute exhaustion. I think that raising the minimum wage would not only help career individuals, but also college students. It is a downfall that the price of living would go up some, but with Lubbock expanding it will eventually anyway. I also think that the atmosphere in businesses would be a lot better. I think that when people are paid a substantial amount, they work harder and tend to enjoy what they do more. This improvement would make employees happy and then they would show their positive attitudes to customers.

  • More Jingle Jangle in Your Pocket « 20 minutes into knowledge // June 17, 2007 at 7:58 pm |

    [...] manager, then this argument may become more widespread. Instead, we are left with economists and marketing majors who cannot make this [...]

You must be logged in to post a comment.